Vandan Foods IPO: Vandan Foods Limited’s SME IPO was opened from 30 June to 2 July 2025. But during this time, the kind of enthusiasm that is usually seen in the IPO of SME sector, did not show the same enthusiasm for this issue.
The size of the IPO was around Rs 30.36 crore, in which the company issued 26.40 lakh equity shares.
Now the company’s stock will be listed on the BSE SME platform on July 7. But the indications that are being received from the Gray Market Premium (GMP) before the listing are further strengthening the possibility of flat listing.
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Subscription analysis: Retail investors showed interest, QIB remains cold (Vandan Foods IPO)
The IPO received a total of 1.75 times subscription, which is much lower than the current market trend.
- Retail category: 3.09 times
- QIB category: Only 0.41 times
- NII: average
This means that only small investors showed some enthusiasm in this issue, while the trust of institutional investors was weak.
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GMP fluctuations: first increased, then dropped (Vandan Foods IPO)
Vandan Foods GMP before opening IPO ₹ 20 Was, which ₹ 115 At the cap price of 17.3% premium Was showing The next day this GMP ₹ 25 Reached It seemed that the listing could be a blockbuster.
But GMP on the last day due to lethargy in subscription Zero Done.
This clearly means listing ₹ 115 But it can happen – ie No Profit, No Loss Status of.
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What is the business model of Vandan Foods? (Vandan Foods IPO)
The main business of Vandan Foods Limited is to the production of refined FSG Castor Oil and Castor Oil Cake. The company works in both B2B and B2C areas and pays attention to every aspect from supply chains to quality control.
The manufacturing unit of the company is in Gujarat and its products are supplied in states like Haryana, Delhi, Andhra Pradesh, Rajasthan, Telangana and Bihar.
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Use of funds raised from IPO (Vandan Foods IPO)
The company will use this fund in the following tasks:
- To meet the needs of working capital
- Repayment of debt
- Expansion of dhinos facility
- For general corporate purposes
However, investors did not show the growth potential in these uses, which they usually seek in the IPOS of the FMCG or Tech Sector.
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Warning signal for investors? (Vandan Foods IPO)
- Weak GMP
- Low subscription
- QIB not interested
- Possibility of flat listing
It is clear from all these signs that Vandan Foods does not seem to have a sharp profitable deal in the IPO short term. However, in terms of long -term investment, the company’s product segment and client base can be considered in mind.
