Upcoming IPO: Snehaa Organics’ initial public offering (IPO) will open for public subscription this Friday, August 29, and will remain open until Tuesday, September 2. The company has fixed the issue price band at ₹115 to ₹122 per share.
The company’s IPO is a fresh issue of 26,79,000 shares, aimed at raising ₹32.68 crore. The company intends to use the net proceeds of the issue to meet its working capital requirements, repayment of some loans, general corporate purposes, and to meet the issue expenses.
Share allotment is expected on September 3, 2025, and the stock is proposed to be listed on the NSE SME platform on September 5, 2025. The minimum application size for retail investors is 2,000 shares ( ₹2.4 lakh), while HNIs must bid for at least three lots (3,000 shares) amounting to ₹3.66 lakh.
Brokerage firm Khandwala Securities highlighted that Snehaa Organics has reported revenue growth from ₹136.52 million in FY23 to ₹262.23 million in FY25, with EBITDA margins improving to 43.52 per cent and PAT margins at 27.98 per cent.
“Robust return ratios (RoE of 49.66 per cent and RoCE of 50.38 per cent) underline its capital efficiency. At the post-IPO equity capital of ₹101.79 million, the issue is valued at 11.99 times FY25 earnings, significantly below the chemicals industry average P/E of 50 times,” said Khandwala Securities.
Citing valuation comfort and upside potential, Khandwala Securities has given a ‘subscribe’ recommendation to the issue.
Avinash Gorakshakar of Avinash Mentor Research Services noted that Snehaa Organics has built strong B2B customer relationships across industries, including pharmaceuticals, agrochemicals, speciality chemicals, and paints.
He emphasised that the company’s established track record, technical expertise, and promoter experience give it a strong competitive edge.
“Snehaa Organics is a fully grown recycling solvent player with significant scale and capability. We believe the IPO offers excellent long-term investment opportunities. Subscribe for the long term,” Gorakshakar said.
Snehaa Organics business
According to the issue’s Red Herring Prospectus, Snehaa Organics operates in the solvent recovery and recycling sector, providing sustainable solutions for industries that utilise solvents in their processes.
The issue RHP reveals the company has seen a sustained rise in its profit and revenue in the last few years.
For FY24, the company earned a profit of ₹3.7 crore, which rose to ₹7.3 crore next year. Revenue from operations rose to ₹26.22 crore in FY25 from ₹23.72 crore in FY24.
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