The Walpar Nutritions IPO was a small SME IPO that came to the market in 2021. Since it belongs to the nutraceutical and Ayurvedic products sector, it attracted interest from investors looking for small healthcare companies.
But the real question is: Was the Walpar IPO good or bad for investors?
Let’s analyze the IPO details, listing performance, strengths, risks, and final verdict.
About Walpar Nutritions
Walpar Nutritions Limited is a company involved in manufacturing and marketing nutraceutical, herbal, and Ayurvedic products. These include items such as health supplements, herbal cosmetics, and food supplements.
Key business activities include:
- Nutraceutical products
- Ayurvedic and herbal products
- Cosmeceuticals
- Food supplements and protein powders
The company started as a partnership firm named Walpar Healthcare and later converted into a public limited company before launching its IPO.
Walpar IPO Details
Here are the main IPO details:
- IPO opening date: 30 June 2021
- IPO closing date: 5 July 2021
- Listing date: 13 July 2021
- Issue price: ₹55 per share
- IPO size: about ₹6.60 crore
- Exchange: NSE SME platform (NSE Emerge)
Since this was an SME IPO, the issue size was very small compared with regular mainboard IPOs.
The IPO was subscribed about 9.48 times, which indicates moderate investor demand.
Listing Performance
The IPO delivered small listing gains.
- Issue price: ₹55
- Listing price: ₹59.95
- Listing gain: about 9% on the first day.
This means investors who sold shares on listing day made a small profit.
Current Stock Performance
Over time, the stock has not performed well.
- Listing price: ₹59.95
- Recent price: about ₹47–₹48
- Return: about 20% decline from listing price.
The estimated long-term return since IPO shows a negative CAGR of around −3%.
So investors who held the stock for several years have not seen strong returns.
Financial Snapshot
Important financial indicators include:
- Revenue around ₹16.7 crore
- Net profit about ₹0.12 crore
- Market capitalization about ₹7.6 crore at IPO
- P/E ratio around 64, which was considered high for a small company.
These numbers show the company is very small with limited profitability.
Strengths of Walpar IPO
1. Growing Nutraceutical Industry
Health supplements and herbal products are becoming more popular in India and globally.
2. Manufacturing Licenses
The company holds FSSAI and AYUSH licenses, allowing it to manufacture various herbal and nutraceutical products.
3. Positive Listing Gains
The IPO gave a small listing gain of about 9%, which benefited short-term investors.
Risks and Weaknesses
1. Very Small Company
The company’s revenue and market cap are extremely small compared to other listed companies.
2. High IPO Valuation
The IPO had a P/E ratio of around 64, which analysts considered expensive for such a small business.
3. Weak Long-Term Stock Performance
The stock price has fallen below the IPO price over time.
4. Highly Competitive Industry
The nutraceutical and herbal product market is very competitive with many large companies.
Expert Opinion
Some analysts even gave a very negative review rating of 1/10, citing slow revenue growth, high valuation, and strong competition in the sector.
This shows that the IPO fundamentals were not considered strong.
Final Verdict – Is Walpar IPO Good or Bad?
Short answer: The Walpar IPO was average for listing gains but not good for long-term investors.
Positive Points
- Small listing gain (around 9%)
- Growing nutraceutical sector
Negative Points
- Very small company size
- High IPO valuation
- Stock price below IPO level
Overall Rating
4/10 – Weak IPO performance.
Short-term investors made small profits, but long-term investors have seen limited or negative returns so far.
