The Khyati Global Ventures IPO, which opened for subscription on October 4, 2024, has been fully booked on the first day itself, reflecting strong demand from retail investors.
The initial public offering (IPO) is set to run until October 8, with shares priced at ₹99 per share. Established in 1993, the company has seen solid financial growth, reporting a 23% increase in profit in the fiscal year ending March 2024.
By the end of the first day of bidding, the IPO had been subscribed 2.83 times, with the retail portion receiving the bulk of interest at 4.01 times subscription. The IPO consists of both fresh issues and an offer for sale and is worth ₹18.30 crore.
Khyati Global Ventures Business Overview
Founded in 1993, Khyati Global Ventures Ltd. (formerly Khyati Advisory Services Ltd.) has made a name for itself in the FMCG export sector. The company focuses on exporting and repackaging various FMCG items, ranging from food and non-food products to pharmaceutical goods and festive handicrafts.
Khyati Global Ventures caters to international wholesalers and supermarket chains, offering globally recognized Indian brands such as Everest, Parle G, MDH, Fortune, Balaji Wafers, Dove, and Unilever. In addition to these well-known brands, the company also trades in locally manufactured products, catering to an increasingly diverse customer base.
Core Business Segments:
- Food and Non-Food FMCG Products
- Pharmaceutical Products
- Festive and Handicraft Goods
- Household Essentials
With its vast portfolio of essential goods, Khyati Global Ventures serves a broad spectrum of customers in both domestic and international markets. Its primary business focus lies in supplying products to supermarket chains and wholesalers operating across multiple countries.
Khyati Global Ventures Financial Performance
The company’s financial performance has seen steady growth in recent years, driven by increased demand for Indian FMCG products overseas. For the fiscal year ending March 2024, the company reported a 23% increase in profit and a 9% rise in sales. This upward trajectory has positioned Khyati Global Ventures as a key player in the FMCG export market, with plans to expand its reach further in the coming years.
The IPO is expected to help the company meet its capital expenditure requirements and working capital needs and fund general corporate purposes. The company’s strong balance sheet and growth prospects make it an attractive proposition for investors.
IPO Subscription Status and Key Details
As of the first day of bidding, Khyati Global Ventures IPO was subscribed 2.83 times, with retail investors leading the way. The retail portion saw 4.01 times subscription, while the NII (Non-Institutional Investor) portion was subscribed 1.66 times.
Key IPO Details:
| Particulars | Details |
|---|---|
| IPO Size | ₹18.30 crore |
| Issue Price | ₹99 per share |
| Subscription Period | October 4 – October 8, 2024 |
| Retail Subscription | 4.01 times |
| NII Subscription | 1.66 times |
| Total Subscription | 2.83 times |
| Fresh Issue | 1,048,000 equity shares |
| Offer for Sale | 800,000 shares |
| Registrar | Bigshare Services Pvt Ltd |
| Lead Manager | Aryaman Financial Services Ltd. |
Khyati Global Ventures aims to raise ₹18.30 crore from the offering, comprising a fresh issue of 1,048,000 equity shares with a face value of ₹10 per share, along with an offer for sale of 800,000 shares.
Grey Market Premium (GMP) and Investor Sentiment
The grey market premium (GMP) for Khyati Global Ventures IPO currently stands at ₹0, indicating that the shares are trading at their issue price of ₹99 with no premium or discount in the grey market.
While the lack of a premium may signal muted demand in the grey market, it’s important to note that GMP is not always an accurate predictor of a stock’s performance on the day of listing.
Investors are advised to focus on the company’s fundamentals and long-term growth prospects rather than the short-term fluctuations of the grey market. Despite the absence of a premium in the grey market, the strong subscription numbers suggest robust interest from retail investors.
Khyati Global Ventures IPO Outlook: Should You Invest?
For investors looking to participate in the FMCG and export sectors, Khyati Global Ventures offers a promising opportunity. The company’s consistent financial growth, driven by its focus on Indian FMCG products and international market expansion, makes it an attractive investment for those with a long-term view.
While the grey market premium is currently nil, the strong first-day subscription numbers—particularly in the retail segment—indicate that there is solid demand for the company’s shares. The IPO proceeds will enable the company to strengthen its working capital and fund its growth plans, positioning it for continued expansion in the FMCG export market.
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Key Considerations for Investors:
- Strong Retail Demand: The retail portion has been subscribed over four times, signaling significant interest from small investors.
- FMCG Growth Potential: The demand for Indian FMCG products globally continues to rise, presenting growth opportunities for exporters like Khyati Global Ventures.
- Financial Strength: The company’s solid financial performance, including a 23% increase in profit for FY2024, indicates a stable foundation for future growth.
However, as with any IPO, investors should carefully consider their risk tolerance and investment goals before participating.
Disclaimer
The information provided in this article is based on current market trends and the performance of Khyati Global Ventures Ltd. Investors are advised to conduct their own research or consult financial advisors before making any investment decisions. Stock market investments are subject to risks, and past performance is not indicative of future results.
