Shyam Dhani Industries IPO Analysis

22 December 2025

From mandis to modern trade, Shyam Dhani Industries is taking its next leap with a ₹38.49  crore IPO, aiming to turn execution into scale.

Let's explore this further:

Parameter	Details
Issue Type	100% Fresh Issue
Issue Size	INR ₹38.49 crore
Price Band	INR 65-70 per share
Lot Size	2000 shares
Net Issue	52,18,000 Shares
Listing Platform	NSE SME
Issue Opens	December 22, 2025
Issue Closes	December 24, 2025
Listing Date	December 30, 2025

Before the Deep Dive: What’s Working — and What Isn’t

Strengths	Risks
EBITDA margin improved from 8.8% (FY23) to 11.7% (FY25), with PAT margin rising to 6.5%	Cash conversion cycle at ~147 days, driven by high inventory holding
Promoters hold ~98% pre-IPO and will retain a majority post listing	Trades at ~17x P/E, higher than peers at ~9–14x
General trade + modern trade contribute ~90%+ of revenue, reducing single-channel risk	Inventory days increased to ~144 days (FY25) due to seasonal stocking
Installed capacity expanded sharply in FY25, creating operating leverage	Operating cash flows were negative in FY24–FY25 due to working capital build-up
Branded spices market growing at ~8–10% CAGR in India	~80%+ revenue from Rajasthan & Punjab, limiting geographic diversification

Now that you’ve seen the snapshot, let’s unpack the full story behind these numbers and understand the business in context.

Indian Spices Industry Outlook

The India spices market size reached INR 2,00,643.7 Crores in 2024. Looking forward it is  expected to reach INR 5,13,253.9 Crores by 2033, exhibiting a CAGR of 10.56% during 2025-2033. What really moves the needle now is premiumisation — blended spices, ready mixes, and consistent quality, where organised players are steadily gaining share.

On the policy side, tailwinds are real: PLI for food processing, PMFME scheme, GST-led formalisation, and export support under the Spices Board of India are pushing small and mid-sized manufacturers to scale, standardise, and access wider markets. Add to that India’s position as the largest global producer and exporter of spices, and demand visibility stays strong.

The sector isn’t about hyper growth, but it’s about predictable volumes, repeat consumption, and brand-led expansion. For companies like Shyam Dhani, the opportunity lies in riding formalisation, expanding distribution, and moving up the value chain in a market that rewards consistency more than hype.

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