Shivashrit Foods Limited, a fast-growing manufacturer and exporter of premium potato flakes, has opened its ₹70.03 crore initial public offering (IPO) for subscription. The issue, consisting of a fresh issue of ₹61.29 crore and an offer for sale of ₹8.75 crore, will remain open from August 22 to August 26, 2025 and is expected to list on the NSE SME platform on September 1, 2025.

The IPO is being offered at a price band of ₹135–142 per share, and at the upper price point, the company will command a post-issue market capitalisation of approximately ₹259.42 crore. As per SME norms, retail investors must apply for a minimum of two lots (2,000 shares), requiring a minimum investment of ₹2,84,000.

Business Overview

Founded in 2017, Shivashrit Foods operates a dedicated potato processing facility in Aligarh, Uttar Pradesh, where it manufactures premium-quality potato flakes primarily for B2B clients in the domestic and international food processing sector. Its industrial clients are involved in the production of snacks, instant foods, and other potato-based products. The company has also initiated steps to enter the B2C retail segment through e-commerce platforms.

The business is managed by the company’s promoters and directors, Mr. Prashant Singhal and Mr. Nishant Singhal, who together possess over 15 years of sector experience and have driven the company’s expansion and customer base across various regions.

Financial Performance

Shivashrit Foods has posted consistently strong financial performance over the past three fiscal years:

The substantial jump in revenue and profitability between FY23 and FY25 highlights growing demand from industrial buyers and successful scale-up of operations.

Key performance metrics:

• Pre-issue EPS: ₹8.64

• Post-issue EPS: ₹6.60

• Pre-issue P/E: 16.43x

• Post-issue P/E: 21.52x

• ROCE (FY24): 42.73%

• ROE (FY24): 42.00%

While return ratios are strong, the post-issue P/E of 21.52x indicates that the IPO is fully priced when compared to other listed food ingredients or agricultural processing companies.

Utilisation of IPO Proceeds

The company intends to use the net IPO proceeds for:

1. ₹26.30 crore toward capital expenditure for expanding its processing capacity (new building, plant and machinery, utility upgrades).

2. ₹19.00 crore for working capital requirements associated with the expansion.

3. Remaining proceeds for general corporate purposes.

The expansion is aimed at meeting rising industrial demand and facilitating entry into the retail/e-commerce segment.

Market Sentiment and GMP

One key sentiment indicator for SME IPOs is the Grey Market Premium (GMP), which currently stands at ₹0 for Shivashrit Foods. A flat GMP indicates that there is no speculative premium being assigned to the issue in the unlisted market, which in turn often suggests a limited upside potential at the time of listing.

SME investors often track GMP closely in the final two days of the subscription window, but as of now there is no visible traction, even though the company’s operational growth remains strong.

Analyst Outlook

Analysts recognise Shivashrit Foods as a high-growth, niche player in the potato processing space with excellent revenue momentum and a strategically located manufacturing facility. The strong ROE and ROCE numbers signal efficient capital utilisation.

However, valuation emerges as a concern, as post-issue P/E stands at 21.52x, leaving relatively limited room for near-term re-rating without continued rapid growth. In addition, the absence of a grey market premium and the relatively large ticket size (₹2.84 lakh) could deter smaller retail investors and limit short-term trading interest after listing.

Conclusion

The Shivashrit Foods IPO offers exposure to a fast-growing food processing company with a robust operational track record, strong margins and expansion-driven pipeline. Nonetheless, because the IPO valuation is already high and current GMP is at zero, investors looking purely for listing gains are advised to remain cautious.

Long-term investors, especially those comfortable with the SME segment and confident in the structural growth story of value-added agro-processing, may consider applying.

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

The Current active IPO are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail, Studio LSD.

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