Shivashrit Foods Limited, a leading manufacturer and exporter of premium-quality potato flakes, has launched its Initial Public Offering (IPO) worth ₹70.03 crore. The issue opened for subscription on August 22, 2025, and will remain open till August 26, 2025. With a growing presence in both B2B and B2C markets, the company aims to raise funds to fuel further expansion. The IPO comprises a Fresh Issue of 43.16 lakh shares worth ₹61.29 crore and an Offer for Sale (OFS) of 6.16 lakh shares worth ₹8.75 crore.

The IPO Price Band has been fixed between ₹135 and ₹142 per equity share, and the tentative listing is scheduled on the NSE SME platform on September 1, 2025. The market capitalisation of the company at the upper price band is estimated at ₹259.42 crore. The IPO lot size is fixed at 1,000 shares, with a minimum application requirement of 2 lots (2,000 shares), which amounts to an investment of ₹2,84,000 for retail investors.

Company Profile and Business Model

Founded in 2017, Shivashrit Foods operates from a dedicated potato processing and manufacturing facility in Aligarh, Uttar Pradesh. The company has established itself as a trusted supplier in the food and snacks industry, working on a B2B business model to provide potato flakes to large industrial clients both in India and abroad.

In recent years, the company has also started expanding into the B2C retail market, targeting consumers directly through e-commerce channels. This diversification is aimed at reducing dependence on industrial demand and capturing value in the fast-growing packaged food market.

The promoters, Mr. Prashant Singhal and Mr. Nishant Singhal, have been involved with the company since its incorporation and collectively bring over 15 years of industry experience. They are supported by a qualified and experienced management team, which has played a crucial role in ensuring steady growth.

Financial Performance

Shivashrit Foods has demonstrated consistent revenue and profit growth over the past three years.

• Revenue from Operations: ₹4,560.57 lakh in FY23, ₹7,755.03 lakh in FY24, and ₹10,584.59 lakh in FY25.

• EBITDA: ₹510.51 lakh in FY23, ₹1,996.31 lakh in FY24, and ₹2,338.18 lakh in FY25.

• Profit After Tax (PAT): ₹151.56 lakh in FY23, ₹1,161.39 lakh in FY24, and ₹1,205.50 lakh in FY25.

The financials clearly show that the company has grown significantly in terms of revenue as well as profitability.

In terms of valuation, the company has a pre-issue EPS of ₹8.64 and post-issue EPS of ₹6.60 for FY24. Its pre-issue P/E ratio is 16.43x, while the post-issue P/E ratio comes to 21.52x. The company has strong profitability ratios with ROCE at 42.73%, ROE at 42.00%, and RoNW at 34.85% for FY24. These metrics suggest that the IPO is fully priced.

Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) of Shivashrit Foods IPO is ₹0, indicating no expected listing gains in the unofficial market. Analysts caution that GMP is based on unorganised trading and should not be taken as a reliable indicator of performance.

Subscription Status

As of 12:00 PM on August 22, 2025, the IPO was subscribed 0.06 times on its first day. The subscription numbers are expected to pick up in the coming days, but early demand appears limited.

Key Players in the IPO Process

• Book Running Lead Manager: Mark Corporate Advisors Private Limited

• Registrar: Maashitla Securities Private Limited

• Market Maker: Asnani Stock Broker Private Limited

Investment Recommendation

Despite strong financials and steady growth, analysts believe that the IPO is fully priced and the lack of premium in the grey market suggests limited listing gains. Therefore, many brokerage houses recommend that investors should avoid subscribing solely for listing gains. However, long-term investors who believe in the growth potential of India’s processed food industry may consider the IPO from a long-term investment perspective.

Conclusion

Shivashrit Foods Limited IPO offers investors an opportunity to participate in the growth story of a company that has carved a strong position in the potato flakes market. With solid financial performance, experienced promoters, and expansion into retail and e-commerce, the company has long-term growth potential.

However, given that the IPO valuations are on the higher side and the GMP indicates zero listing gains, short-term investors are advised to exercise caution. The IPO may be better suited for those who are looking at long-term growth in India’s processed and packaged food sector rather than quick listing profits.

The Upcoming IPOs in this week and coming weeks are Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators, Mangal Electrical Industries, .

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