Khyati Global Ventures Debuts on BSE SME at ₹105, 6.06% Premium Over IPO Price of ₹99

Khyati Global Ventures Limited, an exporter and repacker of FMCG products, made a modest debut on the Indian stock market on Wednesday, 11th October 2024, with its shares listing at a slight premium to the issue price on the Bombay Stock Exchange (BSE) SME platform.

Khyati Global Ventures Listing Details 

Listing Price: Khyati Global Ventures shares were listed at ₹105 per share on the BSE SME platform, marking a positive start to its journey as a publicly traded company.

Comparison to Issue Price: The listing price represents a small premium to the IPO issue price. Khyati Global Ventures had set its IPO price at ₹99 per share.

Percentage Change: The listing price of ₹105 on the BSE SME translates to a premium of 6.06% over the issue price of ₹99.

First-Day Trading Performance of Khyati Global Ventures

Opening vs. Latest Price: Following its positive opening, Khyati Global Ventures' share price experienced some volatility. By 10:22 AM, the stock was trading at ₹99.75, down 5% from its opening price and 0.76% above the issue price, hitting the lower circuit for the day.

Market Capitalisation: As of 10:22 AM, the company's market capitalisation stood at ₹69.61 crore.
Trading Volume: The traded volume was 3.29 lakh shares with a traded value of ₹3.43 crore, indicating moderate investor interest on the first day of listing.

Market Sentiment and Analysis 

Market Reaction: The market initially reacted positively to Khyati Global Ventures' listing, but the stock experienced selling pressure during early trading.

Subscription Rate: The IPO was modestly oversubscribed by 15.17 times, with retail investors leading at 25 times subscription and NIIs at 5.34 times. Notably, there was no participation from QIBs.

Price Band: After opening at ₹105, the stock hit its lower circuit of ₹99.75 (5% below the opening price) during morning trading.

Growth Drivers and Challenges 

Expected drivers of future performance:

• Diverse product portfolio including food, non-food FMCG, and pharmaceutical products
• Strong focus on export business with presence in over 40 countries
• Well-established infrastructure including warehousing facilities
• Consistent financial performance with 30.07% CAGR in PAT from FY2022 to FY2024

Potential challenges:

• Dependence on third-party suppliers for products
• Highly competitive FMCG export sector
• High debt-to-EBITDA ratio raising concerns about financial leverage
• Utilisation of IPO Proceeds 

Khyati Global Ventures plans to use the funds for:

• Funding working capital requirements
• General corporate purposes

Financial Performance of Khyati Global Ventures

The company has demonstrated steady financial growth:

• Revenue increased by 9% to ₹10,464.09 lakh in FY2024 from ₹9,617.14 lakh in FY2023
• Profit After Tax (PAT) rose by 23% to ₹253.19 lakh in FY2024 from ₹205.66 lakh in FY2023

As Khyati Global Ventures begins its journey as a listed entity, market participants will closely monitor its ability to leverage its export-focused business model and diverse product portfolio to drive future growth and improve shareholder value.

The initial positive listing followed by a decline to the lower circuit suggests cautious market sentiment towards the company's prospects in the competitive FMCG export sector. Investors will be watching for signs of continued revenue growth, improved profitability, and effective management of the company's debt levels.