IPO Overview
Incorporated in January 2010, Shanti Inorganics Limited is engaged in the manufacturing and trading of sulphur-based inorganic chemicals. Its main products include sodium metabisulphite, sodium sulphite powder, ammonium bisulphite solution, and sodium bisulphite (powder/solution) — used as preservatives, reducing agents, oxygen scavengers, and process intermediates across industries such as oil drilling, pharmaceuticals, food and beverages, pulp and paper, and water treatment. The company operates two manufacturing units in Ahmedabad, Gujarat, and exports its products to 15 countries, with exports contributing 42.57% of revenue from operations in FY2026.
The company is now launching its SME IPO on the NSE SME platform. The IPO is a fully fresh issue of 56,91,200 equity shares aggregating up to ₹47.24 crore, priced in a band of ₹79 to ₹83 per share. The IPO opens on 31 August 2026 and closes on 2 September 2026, with listing expected on 7 September 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME |
| Anchor Investor Date | 28 August 2026 |
| IPO Open Date | 31 August 2026 |
| IPO Close Date | 02 September 2026 |
| Allotment Date | 03 September 2026 (Expected) |
| Credit to Demat | 04 September 2026 |
| Listing Date | 07 September 2026 (Tentative) |
| Price Band | ₹79 – ₹83 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,600 shares |
| Minimum Investment (Retail) | ₹2,65,600 (2 lots = 3,200 shares) |
| Issue Size | ₹47.24 crore |
| Fresh Issue | 56,91,200 shares (₹47.24 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all IPO proceeds will be received directly by the company for business use.
Objects of the Issue (Fund Utilization)
The primary use of IPO proceeds is part-funding of capital expenditure towards setting up a new manufacturing facility (Phase II) at Bavla, Ahmedabad, Gujarat — for production of sodium metabisulphite, sodium bisulphite powder, and ammonium bisulphite — amounting to ₹42.50 crore. The remainder will be used for general corporate purposes.
- Capital expenditure for Phase II manufacturing facility at Bavla, Ahmedabad — ₹42.50 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Vivro Financial Services Private Limited
- Registrar to the Issue: KFin Technologies Limited
Promoters & Management
The promoters of the company are Manojkumar Jayantilal Patel and Avnish Manojkumar Patel. The promoters and senior management bring extensive domain knowledge in the sulphur-based chemicals industry.
Company Details
Shanti Inorganics Limited manufactures and trades sulphur-based inorganic chemicals. Its principal products include sodium metabisulphite, sodium sulphite powder, ammonium bisulphite solution, and sodium bisulphite in powder and solution forms. These chemicals are used as preservatives, reducing agents, oxygen scavengers, and process intermediates. The company serves customers across oil drilling, pharmaceuticals, food processing, beverages, paper manufacturing, and water treatment.
Sectors Served:
- Food & Beverages
- Oil Drilling & Petrochemicals
- Pharmaceuticals & Agrochemicals
- Water Treatment
- Pulp & Paper
- Ceramics, Cosmetics & Paints
- Chemicals & Polymers
Key Products:
- Sodium Metabisulphite
- Sodium Bisulphite (Powder & Solution)
- Ammonium Bisulphite Solution
- Sodium Sulphite Powder / Anhydrous
Manufacturing Facilities:
The company operates two manufacturing units in Ahmedabad, Gujarat. Its Vatva facility (Unit I) has an installed capacity of 18,800 MTPA, while Phase I of its Bavla facility (Unit II) added 18,000 MTPA and commenced commercial production in February 2025. The proposed Phase II expansion is expected to add 78,544 MTPA, taking total installed capacity to 1,15,344 MTPA.
Certifications:
The company holds quality and food-safety certifications including ISO 9001:2015, NSF, HACCP, Kosher, and Halal — enabling it to serve regulated industries such as food & beverages and pharmaceuticals.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹44.90 | ₹8.00 |
| FY25 | ₹58.46 | ₹8.26 |
| FY26 (Full Year) | ₹72.93 | ₹10.22 |
Key Financial Metrics
- Total income grew by approximately 30% in FY25 to ₹58.46 crore, while PAT rose 61% to ₹8.26 crore. EBITDA margin stood at 21.21% and PAT margin at 14.13% for FY25.
- Revenue grew a further 25% and PAT rose 28% in FY26 compared to FY25.
- Post-issue market capitalization at the upper price band of ₹83: approximately ₹137.42 crore. Post-issue P/E ratio: ~16.63x based on FY25 EPS of ₹4.99.
- ROE: ~38% | ROCE: ~27.20% — indicating efficient use of capital.
- Debt-equity ratio stands at 0.98 — borrowings have risen considerably alongside business expansion.
Company Strengths
- Geographical diversification through exports to international markets — products exported across 15 countries, contributing 42.57% of revenue in FY2026.
- Long-standing relationships with a diversified customer base across multiple end-use industries, reducing dependence on any single sector.
- Strategically located production facilities in Ahmedabad with access to abundant raw materials and long-term supplier relationships.
- Strong quality and food-safety certifications including ISO 9001:2015, NSF, HACCP, Kosher, and Halal — enabling entry into regulated markets.
- Consistent financial performance with strong revenue growth, improving PAT, and healthy return ratios over recent years.
- Significant capacity expansion underway — Phase II at Bavla to add 78,544 MTPA, taking total capacity to over 1.15 lakh MTPA.
Key Risks & Challenges
- Heavy revenue concentration in food & beverages, oil drilling, and chemicals industries — any sector-specific downturn could materially impact business performance.
- Rising borrowings with a debt-equity ratio of 0.98 — increased financial leverage adds risk in case of revenue slowdown or interest rate fluctuations.
- Phase II expansion at Bavla is subject to risks of unanticipated delays in implementation and cost overruns — successful commissioning is critical for future growth.
- Bumper PAT of ₹38.69 crore in 9M-FY26 raises sustainability concerns — pre-IPO earnings spike may not be maintained post-listing.
- SME IPO liquidity risk — limited secondary market trading volumes on NSE SME platform post-listing.
- Raw material (sulphur) price volatility can directly impact input costs and squeeze margins.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
