Khyati Global Ventures IPO Attracts Investors, Signals Positive Market Debut

Khyati Global Ventures IPO Fully Booked in First Day; Indicates Rising Interest from Markets

Khyati Global Ventures Limited is an exporter and repacker of diversified FMCG products. It has been able to obtain a fully subscribed initial public offering (IPO) through the opening day with significant subscription backed up by retail investors. The IPO for the company opened for subscription on 4 October 2024 and was priced at ₹99 per share. The entire issue worth approximately ₹18.30 crore through the issue. The retail investors showed great interest and applied for more than 4 times their allotted shares. Other categories also showed great participation, hence it indicated a healthy market response.

The company was established back in 1993 with a different brand name, before it was renamed. The company deals in the exports and reexports of food products, non-food FMCG items, household products, and festive handicrafts. The IPO received a lukewarm response to begin with, as it was subscribed to only 0.87 times on the first day of the subscription process, but gathered its momentum after that. The overall subscription to the IPO at the end of the subscription period on October 8 stood at 2.86 times.

Though at the time of subscription, no specific Grey Market Premium was reported for Khyati Global Ventures, such a huge subscription especially at the retail level would indicate that there would be positive GMPs after the closure of the IPO if the trend continues. This interest might reflect in a favorable listing; though potential investors are reminded that GMPs are speculative and not necessarily reflective of listing gains, however, in this case:.

It is further supported by profit reports, wherein the company has shown to increase 23% year-on-year. This would infuse much strength to the operations and provide reasons for increasing investor confidence. All the eyes are on the BSE SME, where Khyati Global Ventures shares are going to get listed once it will be allotted on October 11, 2024.

This is a significant event for Khyati Global Ventures in terms of expanding the base of its capital and reflects more-broad investor appetite for good-size SME IPOs with strong fundamentals, despite market corrections in October.

As the niche company eyes success through FMCG export, investors and market observers alike would be keen on how the subscription has translated to a strong listing performance. The funds raised will then help in boosting the company’s working capital as well as general corporate purposes, probably leading to further expansion and cementing the company’s role in the market.

Even though the final GMP is not clear as of now, at the closing of the subscription, the trajectory for the IPO hints at an optimistic market sentiment towards Khyati Global Ventures Limited.