Sacheerome IPO Subscribed Nearly 20 Times On Day 2; GMP Suggests 30% Listing Gains: Should You Bet Or Skip?

Sacheerome Ltd's IPO continues to attract massive investor interest, with the issue subscribed 19.47 times so far on Day 2 of bidding. Investors are deeply invested in the fragrance and flavour maker's market potential as strong demand was seen across the retail and non-institutional investor categories as well.

The Sacheerome IPO, valued at Rs. 61.62 crore, opened for subscription on June 9 and will close on June 11. The IPO is a 100% fresh issue comprising 60.41 lakh shares and is set to list on the NSE SME platform on June 16, subject to allotment finalisation on June 12. The Sacheerome IPO price band is fixed at Rs. 96 to Rs. 102 per share. The minimum lot size for retail investors is 1,200 shares, requiring a base investment of ₹1.15 lakh.

Sacheerome IPO GMP Indicates Strong Listing Gains

As of Tuesday morning, the grey market premium, or GMP, for the Sacheerome IPO stood at Rs. 30, suggesting a potential listing price of Rs. 132 per share. That shows a 29.4% premium over the upper end of the price band of the issue.

Sacheerome IPO Day 2 Subscription Status

As of 1:25 p.m. on June 10, the Sacheerome IPO received an overall subscription of 19.47 times, according to data from the InvestorGain website. The retail investor category was subscribed to 21.17 times, while the Non-Institutional Investor (NII) segment saw even stronger interest, with 31.29 times subscription. The Qualified Institutional Buyers (QIB) category clocking in at 7.60 times. Additionally, both the anchor investor and market maker categories were fully subscribed on Day 2.

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In total, the IPO received over 38,500 applications, with bids for 7.82 crore shares against the 40.18 lakh shares on offer.

Should You Invest In Sacheerome Ltd?

As per the Arihant Capital Market IPO Note, "Sacheerome Ltd is backed by strong R&D capabilities and long-standing B2B relationships, which positions it well to capitalise on growing demand across FMCG, personal care, and food sectors."

Arihant Capital has assigned a 'Neutral' rating to the IPO, suggesting that while the fundamentals are solid, valuation comfort may be limited at current levels.

"Led by experienced promoters, Sacheerome's scalable B2B model enables recurring business and reduces the burden on working capital. At the upper end of the price band (Rs. 102), Sacheerome's IPO is valued at a P/E ratio of 14.28x, based on FY25 projected EPS of Rs. 7.14. "We are recommending a 'Neutral' for this issue currently," the note stated.

About Sacheerome Ltd.

Founded in 1992, Sacheerome Ltd. specialises in the creation and manufacturing of fragrances and flavours used in food and non-food FMCG products. The company serves domestic and international clients across personal care, home care, beverages, bakery, dairy, oral care, and more. Formerly known as Sachee Fragrances Ltd, the company has undergone several name changes, ultimately becoming Sacheerome Ltd. Its products adhere to international quality standards, including IFRA, FSSAI, EU guidelines, and FEMA compliance.

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