IPO Overview
Shivchem Agro Limited is an India-based agrochemical company engaged in the manufacturing, stocking, distribution, and sale of agricultural formulations. The company operates a manufacturing facility in Jhajjar, Haryana, and offers products across insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers. As of 22 September 2026, it held licences for 176 agrochemical products, comprising 88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators, and 3 rodenticides, along with authorisation for 82 fertilizers. The company has built a distribution-led business model, with 685 distributors across eight states as of 31 March 2026, supported by five godowns and a 39-member sales team.
Shivchem Agro IPO is a bookbuilding issue of ₹14.01 crore comprising 22,60,000 fresh equity shares with a face value of ₹5 each. The IPO opens for subscription on 28 September 2026 and closes on 30 September 2026. The price band is fixed at ₹59 to ₹62 per share, while the lot size is 2,000 shares. The shares are proposed to be listed on BSE SME, with listing expected on 6 October 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 28 September 2026 |
| IPO Close Date | 30 September 2026 |
| Allotment Date | 1 October 2026 (Expected) |
| Refund Initiation | 5 October 2026 |
| Credit to Demat | 5 October 2026 |
| Listing Date | 6 October 2026 (Tentative) |
| Price Band | ₹59 – ₹62 per share |
| Face Value | ₹5 per share |
| Lot Size | 2,000 shares |
| Minimum Investment (Retail) | ₹2,48,000 (2 lots = 4,000 shares) |
| Minimum Investment (HNI) | ₹3,72,000 (3 lots = 6,000 shares) |
| Issue Size | ₹14.01 crore |
| Fresh Issue | 22,60,000 shares (₹14.01 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 company plans to allocate ₹6.90 crore of net IPO proceeds to working capital requirements, covering purchases of raw materials for manufacturing, finished-goods stock at warehouses, and customer credit extended in the ordinary course of business. The company also plans to use ₹3.50 crore of net proceeds to repay or prepay certain loans. The remaining proceeds will be used for general corporate purposes.
- Working capital requirements — ₹6.90 crore
- Repayment / prepayment of existing loans — ₹3.50 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Shannon Advisors Private Limited
- Registrar to the Issue: Maashitla Securities Private Limited
Promoters & Management
The promoters of Shivchem Agro are Rohit Agarwal and Sachin Agarwal. The promoters bring domain expertise in agrochemical distribution and formulation manufacturing, and have built the company’s distributor network across multiple states since incorporation.
Company Details
Shivchem Agro Limited is an agrochemical formulations manufacturer and distributor operating in India’s crop protection and plant nutrition market. Its product suite spans crop-protection and plant-nutrition categories including insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers.
On distribution, the company onboarded 21 distributors across various states in 2023, with its distributor base then reported at 185 in 2024, 516 in 2025, and 685 in 2026.
Sectors Served:
- Agriculture (Crop Protection)
- Plant Nutrition & Fertilizers
- Agricultural Input Distribution
Key Products:
- Insecticides (88 licensed products)
- Fungicides (40 licensed products)
- Herbicides (37 licensed products)
- Plant Growth Regulators (8 licensed products)
- Rodenticides (3 licensed products)
- Fertilizers (82 authorized products)
Key Capabilities:
- Diversified product portfolio including a wide range of insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers. Large and diverse distributor and distribution network. On-field product demonstrations. Manufacturing facility with ability to manufacture a wide range of products. Enhanced efficiency through automated filling and packaging machines.
Manufacturing Facility:
- Installed production capacity of 65.08 lakh kg/litres, located in Jhajjar, Haryana
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹10.95 | 1.29 |
| FY25 | ₹27.50 | ₹2.51 |
Key Financial Metrics
- At the ₹62 upper band, the stated post-issue market capitalization is ₹46.70 crore. Based on FY25 PAT of ₹2.51 crore, that implies an indicative P/E of approximately 18.6 times.
- Trade receivables are projected to rise in absolute terms to ₹20.00 crore but fall to 30.77% of revenue, while trade payables are projected to fall to ₹12.70 crore from ₹19.87 crore in the coming year.
- Entire IPO is fresh issue — zero promoter exit; all capital raised goes into business operations.
Company Strengths
- Rapidly growing distributor network — from 21 distributors in 2023 to 685 across eight states as of March 2026, reflecting strong ground-level execution
- Diversified product portfolio with 176 licensed agrochemical products and 82 authorized fertilizers — covering a wide range of crop protection needs
- Installed manufacturing capacity of 65.08 lakh kg/litres with automated filling and packaging machines, enabling scalable production
- Entire IPO is a fresh issue — all proceeds go into operations and debt reduction, with no promoter exit
- India’s agriculture sector provides a large, stable, and recurring demand base for crop protection and plant nutrition products
- On-field product demonstrations as a sales strategy build farmer-level trust and drive repeat purchases through the distributor network
Key Risks & Challenges
- Very small issue size (₹14.01 crore): One of the smallest SME IPOs, limiting institutional interest and post-listing liquidity on BSE SME
- Young company: Converted into a public limited company and renamed Shivchem Agro Limited only in November 2024, reflecting a very limited track record as a listed entity
- An important discrepancy needs resolution — the supplied issue-object figures total ₹16.70 crore, exceeding the ₹14.01 crore issue size even before expenses. Investors should verify the final offer document rather than rely on those allocations.
- ₹6.90 crore from IPO funds covers only a part of the projected ₹30.09 crore working capital requirement — with ₹21.19 crore expected from internal accruals and reserves, making the plan heavily dependent on internal cash generation
- Agrochemical business is inherently seasonal and dependent on monsoon patterns — poor rainfall or pest outbreak failures can directly hit revenue
- Heavy competition from established agrochemical brands like PI Industries, UPL, Bayer, and Dhanuka Agritech operating in the same product categories
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.
