SHREEJI GLOBAL FMCG LIMITED IPO

Shreeji Global FMCG IPO Overview

Rajkot-based spices & agri-products manufacturer raising ₹85 cr fresh issue of 68L shares. Price: ₹120-125. Lot: 2,000 shares (₹2.5L). Listing: NSE SME Nov 12.

Lead: Interactive Financial. Competes with MDH, Everest, Ramdev, Patanjali. High commodity volatility risk.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME
IPO Open Date	4 November 2025 (Tuesday)
IPO Close Date	7 November 2025 (Friday)
Anchor Investor Bidding	3 November 2025 (Monday)
Allotment Date	10 November 2025 (Monday) – Expected
Credit to Demat	11 November 2025 (Tuesday) – Expected
Refund Initiation	11 November 2025 (Tuesday) – Expected
Listing Date	12 November 2025 (Wednesday) – Tentative
Price Band	₹120 – ₹125 per share
Face Value	₹10 per share
Lot Size	1,000 shares
Min Investment (Retail)	₹2,50,000 (2 lots / 2,000 shares at upper band)
HNI Investment	₹3,75,000 (3 lots / 3,000 shares) minimum
Issue Size	₹85 crore total
Fresh Issue	₹85 crore (100% fresh issue)
Offer for Sale (OFS)	NIL
Total Shares Offered	68,00,000 equity shares
Listing	NSE SME (Emerge Platform)
Post-Issue Market Cap	₹284.50 crore (at upper price band)
P/E Ratio	27.01x (FY25 basis)
EPS	₹4.63 (pre-issue), ₹4.62 (post-issue annualized)

Issue Break-up

Category	Allocation	Shares
Anchor Portion	17.09%	11,62,000 shares (raised ₹14.53 cr)
QIB (Net of Anchor)	11.41%	7,76,000 shares
NII (Non-Institutional Investors)	Not less than 19.94%	13,56,000 shares
Retail Individual Investors	Not less than 46.56%	31,66,000 shares
Market Maker	5%	3,40,000 shares

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹85 crore) will be used for:

1. Capital Expenditure on Factory Premises – Expansion and upgradation of manufacturing facilities
2. Capital Expenditure for Plant & Machinery and Cold Storage – Acquisition of advanced processing equipment and cold storage units (5,000 MT capacity) to improve product consistency and shelf life
3. Capital Expenditure for Solar Power – Installation of solar power solutions for internal consumption, reducing energy costs and promoting sustainability
4. Working Capital Requirements – To support procurement, inventory management, and fulfillment across domestic and international markets
5. General Corporate Purposes – Strategic business initiatives and operational needs

Strategic Focus:

• Enhance production efficiency and processing capabilities
• Enter blended spices segment (Garam Masala, Pav Bhaji Masala, Sambhar Masala)
• Expand into millet-based flours and gluten-free products
• Scale D2C channels and e-commerce presence
• Strengthen supply chain and energy sustainability

Note: This is a 100% fresh issue with no OFS. All proceeds go to the company for growth.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

• Interactive Financial Services Limited

Registrar:

• MUFG Intime India Private Limited (Link Intime India Private Limited)
• Address: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400 083
• Phone: +91-22-4918 6270
• Email: [email protected]
• Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html

Market Maker:

• To be confirmed

Promoters & Management

Key Promoters:

• Mr. Jitendra Kakkad – Managing Director
• Mr. Vivek Kakkad
• Mr. Tulshidas Kakkad
• Ms. Dhruti Kakkad

Promoter Background:

• Experienced family with deep roots in agri-commodities and spice trading
• Average of 5+ years of industry experience
• Started with M/s. Shreeji Enterprise (proprietorship) in 2014
• Company incorporated in 2018 to facilitate growth and diversification

Company Contact:

• Registered Office: The Spire, Office No. 1205, 150 Feet Ring Road, Near Ayodhya Circle, Rajkot, Gujarat – 360006
• Phone: +91 96242 26111
• Email: [email protected]
• Website: www.shreejifmcg.com

COMPANY OVERVIEW

Establishment & Background:

• Originally incorporated as Shreeji Agri Commodity Private Limited on February 1, 2018
• Converted to public limited company on August 19, 2024
• Renamed to Shreeji Global FMCG Limited on January 23, 2025
• Industry: Agri-Products Manufacturing & Processing (Spices, Grains, Pulses, Flour)
• Headquarters: Rajkot, Gujarat
• Journey began in 2014 with M/s. Shreeji Enterprise (proprietorship)
• 7+ years of operations under corporate structure

Business Model:

• Integrated manufacturing and processing of ground & whole spices, seeds, grains, pulses, and Atta (flour)
• Operations encompass cleaning, grading, sorting, grinding, and packaging
• Products marketed under proprietary brand “SHETHJI” and through white-label arrangements for institutional buyers
• B2B-focused business model serving individual traders, small businesses, wholesale distributors, and large corporates
• Imports select agri-commodities (Madagascar cloves, UAE coriander seeds, Sri Lankan desiccated coconut, Vietnam star anise/cassia, Singapore wheat) for processing
• Package sizes range from 20 grams to 40 kilograms catering to diverse customer needs

Market Position:

• Growing player in India’s spices and agri-processing sector
• Operates in a market where India is the world’s largest producer, consumer, and exporter of spices
• FY24 India spice production: ~12 million metric tonnes
• India exports: USD 3.73 billion (FY23), up from USD 3.46 billion (FY22)
• India produces 75 out of 109 spice varieties listed under ISO

Operations:

• 2 manufacturing/processing facilities in Gujarat:
  1. Kuvadava GIDC, Rajkot-Ahmedabad Highway (automated spice unit)
  2. Shreenathji Industrial Zone, Morbi district (multigrain unit)
• 5,000 MT cold storage facility for extended shelf life and quality preservation
• 2 branch offices at Agricultural Produce Market Committees (APMCs) in Rajkot and Gondal
• Direct APMC licensing provides sourcing advantages and competitive procurement rates

• Domestic presence: 22 Indian states
• Export markets: 25+ countries including USA, UAE, Malaysia, and others
• Strategic location: Approximately 250 km from Mundra Port enabling cost-effective exports
• Processing capacity: 91,200 MT expanded between FY22-FY24
• Product portfolio: Whole spices, ground spices, oilseeds, flour, pulses
• Examples: Channa, cumin seeds (jeera), coriander seeds, sesame seeds, groundnut, kalonji seeds, fennel seeds, coriander powder, red chilli powder, turmeric powder, wheat flour (atta)

Company Strengths

1. Strategic Geographic Location & Sourcing Advantages:
   • Based in agriculturally rich regions of Rajkot and Gondal, Gujarat
   • Direct licensing and operations within APMCs providing enhanced bargaining power
   • Processing facilities located near agricultural markets ensuring fresh raw material access
   • Proximity to Mundra Port (~250 km) enabling fast, cost-effective exports
   • Reduces logistics costs and improves global service levels
2. Vertically Integrated Operations:
   • Complete control from sourcing to processing and packaging
   • In-house cleaning, grading, sorting, grinding capabilities
   • Ensures consistent product quality, texture, aroma, and shelf life
   • Automated spice and multigrain processing units
   • Cold storage facility (5,000 MT) for inventory management and product preservation
   • Reduces dependency on third parties and improves margins
3. Diversified Product Portfolio:
   • Wide range: Ground and whole spices, seeds, grains, pulses, flour
   • Multiple package sizes (20g to 40 kg) serving various customer segments
   • Expanding into blended spices (Garam Masala, Pav Bhaji Masala, Sambhar Masala, Chhole Masala)
   • Launching millet-based flours (gluten-free, high-fiber) aligned with health trends
   • Product diversification reduces revenue concentration risk
4. Dual Brand & Distribution Strategy:
   • Proprietary brand “SHETHJI” building consumer recognition
   • White-label manufacturing for institutional and bulk buyers
   • B2B and B2C channels diversifying revenue sources
   • Entering D2C and e-commerce platforms for direct consumer engagement
   • Multi-channel approach maximizing market penetration
5. Diversified Customer Base & Geographic Reach:
   • Customers range from individual traders to small businesses to large corporates
   • Operations across 22 Indian states
   • Exports to 25+ countries across multiple continents
   • Export sales contributed 8% of topline in FY25 (provisional)
   • Geographic and customer diversification reduces concentration risk
6. Experienced Promoters & Management:
   • Promoter family brings deep agri-commodities and spice trading expertise
   • 60+ years of combined industry experience
   • Second-tier management team overseeing daily operations
   • Established supplier and customer networks
   • Proven track record of scaling operations (91,200 MT capacity expansion FY22-FY24)
7. Strong Financial Performance & Margin Improvement:
   • Revenue growth from ₹467 cr (FY23) to ₹649 cr (FY25) – consistent upward trajectory
   • PAT increased sixfold from ₹2 cr to ₹12.15 cr over same period
   • EBITDA margin improved to 3.13% in FY25
   • Return on Capital Employed (ROCE): 32%
   • Return on Equity (ROE): 41%
   • Demonstrates capital efficiency and operational leverage
   • Debt-to-Equity ratio: 1.03x indicating financial discipline
8. Industry Tailwinds & Growing Demand:
   • India’s spices market experiencing steady growth (domestic and export)
   • Rising consumer preference for branded, hygienically processed products
   • Shift from unorganized to organized sector benefits players like Shreeji
   • Health-conscious trends favoring millet-based and gluten-free products
   • Government support for agri-exports and value-added products
   • Increasing global demand for Indian spices and blends
9. Capacity Expansion & Sustainability Initiatives:
   • IPO proceeds earmarked for plant, machinery, and cold storage upgrades
   • Solar power investment reducing energy costs and carbon footprint
   • Capacity expansion supporting future growth without asset constraints
   • Focus on operational efficiency and cost optimization
10. Flexible & Scalable Operations:

• Ability to adjust production volumes based on demand and raw material availability
• Adaptability supports business continuity during market fluctuations
• Hybrid sourcing (domestic + imports) ensuring supply resilience
• Proven execution capabilities in scaling infrastructure

Key Risks & Challenges

1. Extreme Commodity Price Volatility:
   • Raw materials (spices, oilseeds, grains, pulses, wheat) constitute significant portion of costs
   • Prices influenced by seasonal crop cycles, monsoons, pest infestations, weather conditions
   • Government policies (MSPs, trade restrictions, export incentives) impact availability and pricing
   • Global commodity demand-supply dynamics create unpredictability
   • Logistics disruptions affecting procurement and distribution
   • Sustained price increases or supply shortages adversely affect margins and profitability
   • Limited ability to immediately pass on cost increases to price-sensitive customers
2. Geographic Revenue Concentration – Gujarat Dependency:
   • Substantial portion of sales concentrated in Gujarat state
   • ₹504.89 cr out of ₹650.85 cr total sales from Gujarat in FY25 (77.6%)
   • ₹453.57 cr from Gujarat in FY24 (76.9%)
   • ₹383.37 cr from Gujarat in FY23 (82%)
   • Heavy dependency exposes business to regional economic, political, and social developments
   • Any adverse conditions specific to Gujarat disproportionately impact operations
   • Limited pan-India diversification creates vulnerability
3. Intense Competition in Fragmented Market:
   • Operates in highly competitive and fragmented spice/agri-products sector
   • Competes with established national brands: MDH, Everest, Ramdev Food Products, Patanjali Foods, Emami
   • Numerous regional players with strong local presence and pricing advantages
   • Unorganized sector offering cheaper alternatives
   • Price-sensitive market limiting premium realization
   • Low product differentiation in commodity categories
   • Continuous need for innovation, quality, and brand building to maintain market share
4. Negative Operating Cash Flow History:
   • Reported negative cash flow from operating activities:
     • FY25: -₹0.17 crore
     • FY24: -₹5.65 crore
     • FY23: -₹5.78 crore
   • Indicates working capital intensity and cash tied up in inventory/receivables
   • Continued negative cash flows constrain ability to fund operations organically
   • Dependency on external financing for expansion and debt servicing
   • May face liquidity challenges if not managed properly
5. Outstanding Debt Obligations:
   • Financial indebtedness of ₹30.12 crore as of August 31, 2025
   • Debt-to-Equity ratio of 1.03x
   • Interest burden impacts profitability
   • Failure to service or repay loans could harm operations and financial position
   • Covenant breaches may trigger accelerated repayment or additional collateral requirements
   • IPO proceeds allocated to working capital rather than debt reduction
6. High Supplier Concentration Risk:
   • Top 10 suppliers contribute significant portion of raw material procurement
   • Loss of major supplier could disrupt supply chain
   • Limited negotiating power with key suppliers during price escalations
   • No long-term supply contracts mentioned – operates on spot/short-term basis
   • Inability to procure materials at competitive prices adversely affects margins
   • Supply relationship disruptions can halt production
7. Entry into New Market Segments – Execution Risk:
   • Expanding into blended spices, millet-based flours, and D2C channels
   • New segments carry inherent challenges: consumer acceptance, distribution build-out, brand positioning
   • Requires different skill sets (marketing, R&D, retail management)
   • Capital allocation to untested categories may not deliver expected returns
   • Rapid capacity expansion can lead to underutilization if demand doesn’t materialize
   • Execution failures in new initiatives could waste resources
8. Working Capital Intensive Business Model:
   • Agri-commodity trading and processing requires substantial working capital
   • Inventory carrying costs high due to bulk procurement and seasonal buying
   • Trade receivables collection cycles impacting cash flow
   • Need for continuous liquidity to manage procurement and operations
   • Working capital constraints can limit growth or force expensive short-term borrowing
9. Regulatory & Compliance Risks:
   • Operating in regulated food processing industry under FSSAI and other authorities
   • Some licenses and trademark applications still under process (per sources)
   • Compliance readiness concerns if approvals delayed or denied
   • Food safety standards violations can trigger recalls, fines, and reputational damage
   • Import-export regulations subject to government policy changes
   • Environmental and labor law compliances adding operational complexity
10. SME Listing – Limited Liquidity:

• Listing on NSE SME (Emerge Platform) not mainboard
• Lower liquidity compared to mainboard stocks
• Limited institutional investor participation
• Higher price volatility and wider bid-ask spreads
• Smaller investor base affecting trading volumes
• Exit may be challenging during unfavorable market conditions

11. Modest Operating Margins:

• EBITDA margin of 3.13% (FY25) typical of staples/spices trading and processing
• Thin margins leave little room for cost absorption
• Vulnerability to competitive pricing pressures
• Need for continuous cost control and efficiency improvements
• Margin expansion dependent on product mix shift toward higher-value categories

12. Sudden Profit Surge Sustainability Concerns:

• PAT increased 122% from ₹5.47 cr (FY24) to ₹12.15 cr (FY25)
• Quantum jump in bottom-line in pre-IPO years raises questions
• Sustainability of such high profit growth rates uncertain
• May reflect one-time factors, accounting changes, or favorable market conditions
• Valuation based on “inflated recent earnings” appears aggressive per some analysts
• Investor caution warranted regarding profitability trajectory

Disclaimer: This information is based on publicly available sources including SEBI RHP filings and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The company operates in a commodity-intensive business with inherent price volatility and margin pressures. SME investments carry higher risks than mainboard listings. Grey Market Premium is unofficial.