Solvex Edibles IPO Opens at ₹72; Issue Size at ₹18.87 Crore and Listing on 29 September

Mumbai, 22 September 2025: Solvex Edibles Limited has launched its initial public offering (IPO) on the SME platform of the Bombay Stock Exchange (BSE). The issue, valued at ₹18.87 crore, will remain open from 22 to 24 September 2025, with listing scheduled on 29 September 2025. Solvex Edibles IPO is a 100% fresh issue priced at ₹72 per share, with a minimum lot size of 1,600 shares.

The company, incorporated in 2013 and headquartered in Rampur, Uttar Pradesh, is primarily engaged in manufacturing and selling physically refined rice bran oil, mustard oil, de-oiled cakes, mustard cakes and rice bran residue wax. Its products serve both FMCG companies and the cattle, poultry and fish feed industries.

IPO Structure and Fund Utilisation Reflect Growth Focus of Solvex Edibles

The company will issue 26,20,800 shares, taking its post-issue share capital to 89,51,970 shares. Solvex Edibles has earmarked:

• ₹830.99 lakh for the purchase of plant and machinery,
• ₹590 lakh for partial repayment of borrowings, and
• ₹278.99 lakh for general corporate purposes.

The IPO is managed by Corporate Makers Capital Limited, with Maashitla Securities Pvt. Ltd. as registrar and JSK Securities and Services Pvt. Ltd. as market maker.

Consolidated Revenue Surges 88% YoY in FY25 Driving IPO Momentum

On a consolidated basis, the company reported revenue of ₹13,546.15 lakh in FY25, up 88% year-on-year from ₹7,188.56 lakh in FY24. Net profit grew sharply to ₹408.98 lakh in FY25, compared to ₹101.02 lakh in FY24, while earnings per share (EPS) rose to ₹6.28 from ₹1.99.

Standalone performance showed more modest growth, with FY25 revenue at ₹7,470.61 lakh, up 4.8% from FY24’s ₹7,127.43 lakh. Net profit on a standalone basis improved nearly threefold to ₹283.86 lakh in FY25 from ₹98.99 lakh in FY24. The return on net worth (RoNW) expanded to 15.02% in FY25 from 6.90% in FY24.

Key Business Strengths: Expanding Capacity and Diversified Product Portfolio

Strengths highlighted in the red herring prospectus (RHP) include:

• An experienced promoter group with a long-standing industry presence.
• A diversified product portfolio catering to both food and non-food markets.
• A strategic plant location in Uttar Pradesh ensuring raw material availability.
• Ongoing expansion with an installed capacity of 200 TPD (tonnes per day) edible oil processing.

Dependence on Rice Bran Oil and Regional Risks Shape Future Outlook

Despite strong consolidated growth, risks outlined in the RHP reflect certain vulnerabilities. Over 86% of revenue in FY25 came from rice bran oil and de-oiled rice bran, underscoring high product concentration. Additionally, 41.16% of FY25 revenue was derived from the top 10 clients, reflecting significant customer reliance.

The company’s operations are largely concentrated in Uttar Pradesh, leaving it exposed to regional disruptions. Moreover, negative operating cash flows in FY24 and FY25 on a standalone basis highlight financial pressures. Pending litigations of ₹27.3 lakh and potential conflicts of interest from promoter group entities in similar businesses add further risks.

Solvex Edibles’ IPO reflects a growth-oriented capital deployment plan, supported by strong consolidated revenue and profit expansion in FY25. At the same time, concentration in a few products and customers, negative cash flows, and region-specific risks present notable challenges. Stakeholders should closely observe how the company manages diversification and cash flow stabilisation post-listing.

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