Shyam Dhani Industries: 1000x Subscription and 100% GMP Mania

Shyam Dhani Industries has officially become the "SME Sensation" of December 2025. As the allotment process is finalized on December 26, the data shows an astronomical 988x oversubscription, with the retail portion alone getting booked over 1,100 times. This intense demand has pushed the Grey Market Premium (GMP) to a solid ₹70, which is exactly 100% of its upper price band of ₹70. This implies a potential listing price of ₹140 when it debuts on the NSE SME platform on December 30.\n\nThe Jaipur-based spice manufacturer has hit a sweet spot with investors by demonstrating robust financial growth—reporting a 28% increase in profit for FY25. The company’s "Shyam" brand has successfully penetrated the quick-commerce and modern retail segments, which are currently the fastest-growing channels in the Indian FMCG sector. The IPO proceeds will be used to automate their manufacturing unit, further enhancing their production capacity to meet this surging demand.\n\nHowever, the massive subscription levels mean that the "Basis of Allotment" will be extremely tight. For most retail applicants, the chance of getting even one lot is less than 0.1%. While the 100% GMP signal is strong, seasoned investors warn that such high hype can lead to extreme volatility on listing day. If the broader market experiences profit booking, the "listing pop" could cool down faster than expected.\n\nTechnically, the company carries a debt-to-equity ratio of 2, which is slightly on the higher side for a small-cap entity. Investors should monitor how the management utilizes the new capital to deleverage the balance sheet while scaling operations. The high ROCE of 39% suggests that the company is efficient in its use of capital, which is a major green flag for those looking beyond the listing day gains.\n\nIn conclusion, Shyam Dhani Industries is a classic example of the current "SME Bull Run" in India. Whether it sustains its ₹140+ valuation post-listing remains to be seen, but it has certainly set a high bar for the first set of IPOs in 2026. For those who do not get the allotment, a "wait and watch" approach is recommended before entering at a high premium on the secondary market.