Solvex Edibles IPO GMP, Price Review, Key Dates & Complete Details

 

Solvex Edibles IPO: A Deep Dive into the Edible Oil Manufacturer

The Solvex Edibles IPO GMP is here, and investors are keenly watching its progress. The Grey Market Premium (GMP) is a key indicator that offers an unofficial glimpse into the IPO's potential. Let's delve into a comprehensive analysis of the company and its initial public offering.



Table of Contents

  • Solvex Edibles IPO - Company Analysis

  • Solvex Edibles IPO Details

  • Company Financials

  • The Objective of The Issue

  • Listed Peers of Solvex Edibles Ltd.

  • Evaluation of P/E Ratio

  • IPO's Strengths

  • IPO’s Weaknesses

  • Solvex Edibles IPO GMP

  • Solvex Edibles Limited IPO Summary

  • Solvex Edibles IPO Allotment Status

  • Promoters And Management of Solvex Edibles Ltd.

  • Solvex Edibles IPO Lead Managers

  • Dividend Policy

  • Conclusion

Solvex Edibles IPO - Company Analysis

Solvex Edibles Ltd., founded in 2013, is a Uttar Pradesh-based manufacturer of solvent-extracted rice bran oil and its by-products. The company's products, including de-oiled cakes from rice bran and mustard, are used in cattle, poultry, and fish feed industries. The company also sells crude rice bran oil to refineries for further processing. Solvex has a manufacturing facility in Kemri, Uttar Pradesh, with a capacity of 200 tonnes per day. Its strategic location in the second-largest rice-producing area in India provides easy access to raw materials and a steady supply network.

Solvex Edibles IPO Details

  • Type: Fixed Price Issue

  • Total Issue Size: ₹18.87 crores (entirely a fresh issue)

  • Issue Price: ₹72 per share (with a face value of ₹10)

  • Lot Size: 1,600 shares

  • Minimum Retail Investment: ₹2,30,400 (for 3,200 shares)

  • Listing: BSE SME

IPO Timetable (Tentative):

  • IPO Open Date: September 22, 2025

  • IPO Close Date: September 24, 2025

  • Allotment Finalization: September 25, 2025

  • Refund Initiation: September 26, 2025

  • Demat Account Credit: September 26, 2025

  • Listing Date: September 29, 2025

Company Financials

Solvex Edibles has shown remarkable financial growth in recent years.

  • Revenue from Operations (FY25): ₹136.46 crores (a significant increase from ₹71.94 crores in FY24)

  • Profit After Tax (PAT) (FY25): ₹4.09 crores (a substantial increase from ₹1.01 crores in FY24)

  • Total Assets (FY25): ₹92.05 crores

  • Total Borrowing (FY25): ₹57.94 crores

The Objective of The Issue

The company intends to use the funds raised from the IPO for:

  • Acquiring new plant and machinery at its existing facility: ₹8.31 crore.

  • Partial repayment of outstanding borrowings: ₹5.90 crore.

  • General corporate purposes: ₹2.79 crore.

Listed Peers of Solvex Edibles Ltd.

Based on the nature of its business, some listed peers of Solvex Edibles Ltd. are Ramdevba ba Solvent Limited and M K Proteins Limited.

Evaluation of P/E Ratio

The IPO is priced at a fixed value of ₹72 per share. Based on its FY25 earnings per share (EPS), the P/E ratio is estimated to be around 15.76. This can be compared to the P/E ratios of its listed peers to assess the relative valuation.

IPO's Strengths

  • Consistent Growth: The company has a strong track record of increasing revenue and profitability.

  • Strategic Location: The manufacturing facility is strategically located in a key raw material hub, ensuring a steady supply of rice bran.

  • Experienced Management: The promoters and management team have extensive experience in the edible oil industry.

  • Diversified Product Portfolio: In addition to edible oil, the company generates revenue from by-products like de-oiled cakes, which are used in the animal feed industry.

IPO’s Weaknesses

  • Limited Customer Base: A significant portion of the company’s revenue is concentrated from a few customers.

  • Product Concentration: The business heavily depends on the sales of rice bran oil, making it vulnerable to market fluctuations.

  • High Dependence on Raw Materials: The company does not have long-term supply agreements for raw materials, exposing it to price volatility.

Solvex Edibles IPO GMP (Grey Market Premium)

As of the IPO opening date, the Solvex Edibles IPO GMP is at a muted level, suggesting expectations of a modest listing. The GMP has been reported to be hovering around 3%, which translates to a small premium over the issue price of ₹72. This indicates that the grey market is not expecting a significant listing gain.

Solvex Edibles Limited IPO Summary

The Solvex Edibles IPO presents an opportunity for investors to participate in a company with a strong growth trajectory in the edible oil and by-products sector. Its solid financials and clear use of proceeds are compelling, but investors should also consider the inherent risks, such as customer and product concentration.

Solvex Edibles IPO Allotment Status

The allotment for the IPO is expected to be finalized on September 25, 2025. Investors can check their allotment status on the registrar's website, Maashitla Securities Pvt. Ltd.

Promoters And Management of Solvex Edibles Ltd.

The company's promoters are Mr. Ashish Goel, Mr. Vishal Goel, and Mrs. Rashika Gupta. They are supported by a management team with extensive domain expertise.

Solvex Edibles IPO Lead Managers

The Book Running Lead Manager for the IPO is Corporate Makers Capital Ltd., and the registrar is Maashitla Securities Pvt. Ltd.

Dividend Policy

The company does not have a formal dividend policy but will consider paying dividends in the future, subject to its financial performance and business requirements.

Conclusion

In conclusion, the Solvex Edibles IPO is a fixed-price issue with a clear objective and a promising financial track record. While the Solvex Edibles IPO GMP is currently at a modest level, the company's fundamentals, including its strong revenue growth and strategic location, may appeal to long-term investors. A thorough review of the company’s strengths and weaknesses is essential before making a final investment decision.

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