Silverstorm Parks IPO draws weak demand despite profit surge
Silverstorm Parks and Resorts launched a BSE SME IPO on Friday, but early investor demand remains muted and grey market premiums are flat despite the company posting a twentyfold increase in net profit over two years.
Silverstorm Parks and Resorts opened its initial public offering on Friday, seeking to raise capital entirely through a fresh issue of 61.98 lakh shares priced between ₹123 and ₹133 each. The BSE SME listing follows a pre-IPO placement that secured roughly ₹22 crore from 14 anchor investors at the upper end of the price band.
Despite this anchor support, public demand has been noticeably sluggish. By 11:10 AM on the opening day, the overall issue was subscribed just 0.12 times. Retail investors had bid for 0.14 times their allocated portion, while non-institutional investors covered 0.22 times of their reserved shares. Notably, the qualified institutional buyer portion had yet to register a single subscription.
This cold reception is mirrored in the unregulated grey market, where the premium stands at nil. A flat premium signals that traders expect the equity to list precisely at its issue price, suggesting the market believes the ₹123 to ₹133 valuation range fully prices the company's growth prospects.
Such scepticism stands in stark contrast to the operator's recent financial trajectory. The company has reported sustained top-line and bottom-line expansion since FY24. Revenue climbed from ₹18.86 crore in FY24 to ₹31 crore in FY25, and further to ₹43.58 crore in FY26. Profit growth has been even more aggressive, surging from nearly ₹1 crore in FY24 to ₹9.71 crore the following year, before reaching ₹19.01 crore in FY26.
Silverstorm Parks operates an amusement and water park, a snow park, and an integrated resort near the Athirappilly waterfalls in Kerala's Thrissur district. It also runs a snow park in Jamshedpur, Jharkhand. "We are one of the renowned and established players in the region and set to become the first amusement park in the region to offer a cable car for tourists," the company stated in its red herring prospectus.
The company plans to deploy the net proceeds to fund capital expenditure for a new snow park and family entertainment centre in Lucknow. Funds will also be used to upgrade the existing Athirappilly facility, repay certain borrowings, and cover general corporate purposes.
The book-running lead manager for the issue is Vivro Financial Services Private Limited, with MUFG Intime India Private Limited acting as registrar. The subscription window closes on Tuesday, 28 July. Share allotment is expected on Wednesday, with credits to demat accounts and refunds processed the following day ahead of a Friday, 31 July BSE SME listing.
