Shivashrit Foods Limited IPO has opened for public subscription with an issue size of ₹70.03 crore, consisting of a Fresh Issue of 43.16 lakh shares worth ₹61.29 crore and an Offer for Sale of 6.16 lakh shares worth ₹8.75 crore. The IPO opens on 22 August 2025 and closes on 26 August 2025, with the allotment scheduled for 28 August 2025 and the tentative listing date set for 01 September 2025 on the NSE SME platform.

The price band has been fixed at ₹135 to ₹142 per equity share, and the market capitalisation at the upper price band of ₹142 is estimated to be ₹259.42 crore. The lot size is set at 1,000 shares, requiring a minimum investment of 2 lots (2,000 shares), which amounts to ₹2,84,000. This high minimum ticket size makes the IPO more suited to HNIs and institutional investors, limiting participation from smaller retail investors.

The issue is managed by Mark Corporate Advisors Private Limited as the Book Running Lead Manager, with Maashitla Securities Private Limited as the Registrar, and Asnani Stock Broker Private Limited as the Market Maker.

Grey Market Premium Outlook

The Grey Market Premium (GMP) of Shivashrit Foods IPO is currently ₹0, suggesting no expected listing gains. While GMP is not a reliable or regulated indicator, it often reflects investor sentiment before listing. A GMP of zero shows that the market is not pricing in significant upside potential in the short term.

Subscription Status

As of 12:00 PM on 22 August 2025, the IPO has been subscribed only 0.06 times on its opening day, reflecting weak demand from investors. Unless demand picks up significantly in the following days, the issue may remain undersubscribed, raising caution for those considering investment purely for listing gains.

Company Background

Founded in 2017, Shivashrit Foods Limited is a leading manufacturer and exporter of premium-quality potato flakes, headquartered in Aligarh, Uttar Pradesh. The company operates a state-of-the-art processing and manufacturing facility in Aligarh for the production of potato flakes.

Shivashrit Foods primarily follows a B2B business model, supplying its products to industrial clients in the food and snacks sector both in India and abroad. In addition, the company is expanding into the B2C segment by launching products directly in the retail market through e-commerce platforms. This diversification reflects its ambition to capture new consumer segments and build a direct brand presence.

The business is led by its Promoters and Directors, Mr. Prashant Singhal and Mr. Nishant Singhal, who together bring over 15 years of experience in the potato flakes industry. The management team has expertise in operations, production, and marketing, ensuring steady growth and future scalability.

Financial Performance

Shivashrit Foods has reported strong growth in revenue and profitability over the past three years:

• Revenue from operations:

  • FY2025 – ₹10,584.59 lakh

  • FY2024 – ₹7,755.03 lakh

  • FY2023 – ₹4,560.57 lakh

• EBITDA:

  • FY2025 – ₹2,338.18 lakh

  • FY2024 – ₹1,996.31 lakh

  • FY2023 – ₹510.51 lakh

• Profit After Tax (PAT):

  • FY2025 – ₹1,205.50 lakh

  • FY2024 – ₹1,161.39 lakh

  • FY2023 – ₹151.56 lakh

This steady increase highlights the company’s scalability and efficiency in operations.

In terms of key performance metrics:

• Pre-issue EPS is ₹8.64, and post-issue EPS is ₹6.60.

• Pre-issue P/E ratio stands at 16.43x, while post-issue P/E ratio increases to 21.52x.

• ROCE is 42.73%, ROE is 42.00%, and RoNW is 34.85%.

While the financials show robust growth, the valuation appears fully priced, limiting the scope for listing gains despite operational strength.

IPO Objectives

The company aims to utilise the net proceeds from the issue for:

1. Business expansion and strengthening its manufacturing capabilities.

2. Working capital requirements to manage its growing scale.

3. Debt repayment to reduce financial liabilities.

4. General corporate purposes, including brand development and entry into the B2C segment.

Investment Review

Despite its impressive revenue growth and strong return ratios, the Shivashrit Foods IPO faces concerns due to its high valuations and lack of immediate market enthusiasm, as reflected in the GMP of ₹0. The subscription figures on the opening day also suggest cautious investor sentiment.

For short-term investors, the IPO does not appear attractive for listing gains. On the other hand, long-term investors with confidence in the company’s ability to expand into B2C markets and strengthen its export business may consider it for portfolio diversification, but only with a careful evaluation of risks.

Given current signals, analysts recommend that investors should avoid this IPO for listing gain opportunities, but evaluate its long-term growth potential based on the company’s strong fundamentals and expanding market presence.

The Upcoming IPOs in this week and coming weeks are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Anondita Medicare, Classic Electrodes (India), Vikran Engineering, Shivashrit Foods.

The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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