Planning to invest in the Shyam Dhani Industries IPO? Read this simple, step-by-step guide covering the price band, dates, business model, financials, and risks to decide if this SME IPO is right for you.
Table of Contents
Introduction
If you have ever bought spices for your kitchen, you know how essential they are to Indian cooking. Shyam Dhani Industries is a company that operates in this exact space. They manufacture and sell a wide variety of spices and grocery products. Now, this company is looking to grow bigger by raising money from the public through an Initial Public Offering, also known as an IPO.
For a retail investor, an IPO is an opportunity to buy shares of a company when it first lists on the stock market. This guide will walk you through the Shyam Dhani Industries IPO details in plain and simple language, helping you understand what the company does and whether it might be a good investment for you.
Who is Shyam Dhani Industries?
Shyam Dhani Industries was founded in 1995. The company has been in the business for three decades. They are based in Jaipur, Rajasthan. Their main business is manufacturing, wholesaling, and exporting spices and food products.
They sell their products under the brand name “SHYAM.” Their product list is quite long and includes over 163 different types of spices. This includes whole spices, blended spices, and ground spices. Besides spices, they also deal in grocery items like black salt, rock salt, poha, and rice.
The company has its own manufacturing facility in Jaipur. This allows them to control the quality of their products from start to finish. They buy raw materials, process them, and then package them for sale. Their leadership team has many years of experience in the food industry, which has helped them grow the brand over the years.
Key IPO Details You Should Know
Here are the most important facts about this IPO.
- IPO Dates: The IPO opens for subscription on December 22, 2025, and closes on December 24, 2025. You have these three days to apply.
- Price Band: The company has set the price for its shares between ₹65 and ₹70 per share. When you apply, you usually bid at the higher price of ₹70 to have the best chance of getting shares.
- Lot Size: Unlike regular stocks, where you can buy just one share, in an SME IPO like this one, you must buy a minimum bundle of shares called a “lot.” The lot size here is 2,000 shares.
- Minimum Investment: Since you have to buy at least one lot of 2,000 shares at the upper price of ₹70, the minimum amount you need to invest is ₹1,40,000.
- Issue Size: The company aims to raise about ₹38.49 Crores. All of this is a “Fresh Issue,” meaning the money will go directly into the company to help it grow, rather than to existing owners selling their stakes.
- Listing: The shares will be listed on the NSE SME platform.
Shyam Dhani Industries IPO: Quick Overview
| Category | Details |
|---|---|
| Company Background | Founded in 1995, Shyam Dhani Industries is a Jaipur-based spice and grocery manufacturer selling products under the “SHYAM” brand. |
| Business Model | Manufactures, wholesales, and exports over 163 spice varieties along with grocery items like salt, poha, and rice. |
| IPO Dates | Opens on December 22, 2025 and closes on December 24, 2025. |
| Price Band | ₹65 to ₹70 per share. |
| Lot Size | 2,000 shares per lot. |
| Minimum Investment | ₹1,40,000 at the upper price band. |
| Issue Size | ₹38.49 crore, entirely a fresh issue. |
| Listing Platform | NSE SME. |
| Financial Growth | Revenue grew from ₹67.95 crore in FY23 to ₹124.68 crore (annualized FY25). |
| Profit Trend | Profit increased from ₹2.92 crore in FY23 to ₹8.04 crore in FY25. |
| Key Strengths | Wide product range, in-house manufacturing, strong distribution, consistent growth. |
| Key Risks | High competition, raw material price volatility, low SME liquidity. |
Main Strengths of the Company
Before investing, it is good to know what makes the company strong.
First, they have a wide product range. By selling 163 different types of spices and other groceries, they do not rely on just one single product for their income. If one spice becomes expensive or sells less, others can make up for it.
Second, they have an integrated manufacturing setup. Since they have their own factory in Jaipur, they can manage production costs better and ensure their spices are pure and high quality.
Third, they have a strong distribution network. They sell their products to wholesalers, supermarkets, and even export them to other countries. They are also present on quick commerce platforms, which is where many people buy groceries today.
Finally, their revenue growth has been impressive. The company has been increasing its sales consistently over the last few years.
Financial Performance Overview
Let us look at their money matters. The financial health of a company is the most critical part of an investment decision.
- Revenue (Sales): In the financial year 2023, their revenue was roughly ₹67.95 Crores. By 2024, this grew to ₹107.60 Crores. For the financial year 2025, their annualized revenue reached around ₹124.68 Crores. This shows that the demand for their products is increasing every year.
- Profit (Earnings): Their profit has also grown along with their sales. In 2023, they made a profit of about ₹2.92 Crores. This increased to ₹6.30 Crores in 2024. In 2025, their profit climbed further to ₹8.04 Crores.
This steady growth in both sales and profit is a positive sign for investors. It shows the company is expanding and managing its expenses well.
Risks and Challenges
Every investment carries some risk. Here are a few things to consider before you invest.
- Competition: The spice market in India is very crowded. There are big brands like Everest and MDH, as well as many local players. Shyam Dhani Industries has to fight hard to keep its customers.
- Raw Material Prices: Spices are agricultural products. Their prices depend on the weather and harvest. If the price of raw spices goes up due to bad weather, the company’s profit margins could shrink.
- SME IPO Liquidity: This is an SME IPO, not a mainboard IPO. Stocks in the SME segment are less liquid. This means it might be harder to sell your shares quickly compared to big companies like Reliance or Tata. The lot size requirement of 2,000 shares remains even after listing, making it harder for small investors to buy or sell.
- Geographical Concentration: Their manufacturing is concentrated in one location, Jaipur. Any disruption there could affect their entire production.
Who is this IPO Suitable For?
This IPO is not for everyone.
- For Short-Term Investors: If you are looking for “listing gains,” which means selling the shares immediately on the listing day for a profit, this could be an option if the market demand is high. However, SME IPOs can be volatile, so there is always a risk.
- For Long-Term Investors: If you believe in the growth story of the company and are willing to hold the shares for a year or more, this might be suitable. The company has good financials, but you must be comfortable with the risks of investing in a smaller company.
Conclusion
Shyam Dhani Industries seems to be a growing company with a solid track record in the spice business. Their revenue and profits are moving in the right direction. The IPO size is small, and the financials look healthy.
However, the large minimum investment of ₹1,40,000 makes it a big commitment for a retail investor. If you have the funds and a higher risk appetite, you might consider applying. But if you prefer safer, more liquid investments, you might want to wait and watch.
Always remember to do your own research or consult a financial advisor before making any investment decisions. Investing in the stock market is about patience and understanding what you own.
Source: Shyam Dhani Industries Limited IPO Analysis and valuation & Shyam Dhani Industries IPO Details
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