Shubhshree Biofuels Energy Debuts Strong On NSE SME

New Delhi, Sep 16 (KNN) Shubhshree Biofuels Energy Ltd. made a robust debut on the NSE SME today, with shares trading at Rs 198.45, representing a 66.76 per cent premium over the initial public offering (IPO) price of Rs 119.

The stock opened at Rs 189, marking a 58.82 per cent increase from the IPO price, and quickly reached its upper circuit limit of 5 per cent above the listing price.

During the trading session, the scrip touched a high of Rs 198.45 and a low of Rs 179.55, with approximately 6.11 lakh shares changing hands.

The company's IPO, which was open for subscription from September 9 to September 11, 2024, garnered significant investor interest, being oversubscribed by 85.61 times.

The offering comprised a fresh issue of 13,92,000 shares within a price band of Rs 113 to Rs 119 per share.

Prior to the public offering, Shubhshree Biofuels Energy raised Rs 4.68 crore from anchor investors on September 6, 2024, allocating 3.93 lakh shares at Rs 119 each to three institutional investors.

Following the IPO, the promoter and promoter group shareholding has been diluted from 100 per cent to 73.45 per cent.

The company plans to utilise the IPO proceeds for capital expenditure on additional plant and machinery, meeting working capital requirements, and general corporate purposes.

Shubhshree Biofuels Energy specialises in the manufacture and supply of biomass fuels, including pellets and briquettes.

Its primary market includes northern Indian states, with a significant focus on Haryana, Uttar Pradesh, Rajasthan, and the National Capital Region. In the fiscal year 2024, the company reported sales of 121,800 tonnes of biomass fuels.

Financial records indicate that Shubhshree Biofuels Energy achieved a revenue from operations of Rs 94.14 crore and a net profit of Rs 3.29 crore for the period ending March 31, 2024. As of that date, the company employed 26 individuals.

The strong market debut and oversubscription of the IPO suggest investor confidence in Shubhshree Biofuels Energy's business model and growth prospects in the renewable energy sector.

(KNN Bureau)