The Indian primary market is buzzing with activity, and the latest entrant making headlines is Shivashrit Foods Ltd. The company, a prominent player in the potato flakes manufacturing and export sector, has opened its initial public offering (IPO) for subscription today, on August 22, 2025. This move marks a significant milestone for the Aligarh-based firm, aiming to raise a substantial Rs 70.03 crore to fuel its expansion and operational requirements. As investors eye new opportunities, understanding the intricacies of the Shivashrit Foods IPO is crucial for making informed decisions.
Shivashrit Foods Ltd. was established in 2017 and has quickly carved a niche for itself in the food processing industry. Headquartered in Gopal Ganj, Sarai Lavaria, Aligarh, Uttar Pradesh, the company specialises in producing high-quality potato flakes. These versatile flakes are an essential ingredient in a wide array of products, from ready-to-eat meals and various snacks to other processed food items. Their products are sold under well-recognised brands like Shivashrit, Shreeaahar, and Flaker’s, catering to both the domestic Indian market and an impressive international clientele across more than 20 countries, including the US, Brazil, Israel, Mexico, and Indonesia.
Understanding the Shivashrit Foods IPO Structure and Pricing
The IPO size of Rs 70.03 crore is a mix of fresh shares issued by the company and an Offer for Sale (OFS) by existing shareholders. A significant portion, Rs 61.29 crore, comes from the fresh issue component, indicating the company’s intent to infuse capital directly into its business operations for growth. The remaining Rs 8.75 crore is from the OFS, where existing promoters or shareholders are selling a part of their stake. In total, 49,32,000 shares are being offered to the public.
The price band for the IPO has been fixed between Rs 135 and Rs 142 per share. This range allows investors to bid within a specific bracket. For retail individual investors, the shares are available in a lot size of 2,000 shares. This means the baseline minimum investment for a retail applicant would be approximately Rs 2.7 lakh (2,000 shares multiplied by the lower price band of Rs 135 per share), and up to Rs 2.84 lakh at the upper price band. Such a structure is typical for SME (Small and Medium Enterprises) IPOs, which are often listed on dedicated SME platforms like the NSE SME.
Here’s a detailed look at the IPO’s key dates and lot size information:
Key Dates for the Shivashrit Foods IPO
| Event | Date |
|---|---|
| Opening Date | 22 August 2025 |
| Closing Date | 26 August 2025 |
| Basis of Allotment | 28 August 2025 |
| Initiation of Refunds | 29 August 2025 |
| Credit of Shares | 29 August 2025 |
| Listing Date | 1 September 2025 (on NSE SME platform) |
IPO Lot Size and Minimum Investment Details
| Applicant Type | Lots | Shares | Amount (Rs.) |
|---|---|---|---|
| Individual Minimum | 2 | 2,000 | 284,000 |
| Individual Maximum | 2 | 2,000 | 284,000 |
| SHNI Minimum | 3 | 3,000 | 426,000 |
| SHNI Maximum | 7 | 7,000 | 994,000 |
| BHNI Minimum | 8 | 8,000 | 1,136,000 |
As indicated in the table, the investment tiers vary for different applicant types, with High Net Worth Individuals (HNIs) participating with larger lot sizes.
Financial Performance and Future Outlook
Shivashrit Foods has demonstrated robust financial growth, which is a key indicator for potential investors. According to the company’s latest financial disclosures for the fiscal year 2025 (FY25), its revenue surged to Rs 105.85 crore, marking a healthy 36% year-on-year increase. This impressive top-line growth suggests strong market demand for its products and effective business operations. While revenue saw a substantial jump, the Profit After Tax (PAT) for FY25 also increased, albeit at a more modest pace of 4%, reaching Rs 12.06 crore. This indicates that while the company is expanding rapidly, it is also focusing on maintaining profitability.
Furthermore, as of FY25, Shivashrit Foods reported a net worth of Rs 34.59 crore. It’s important for investors to note the company’s debt position, which stood at Rs 47.96 crore for the same period. Understanding the debt-to-equity ratio and how the company plans to manage its liabilities is crucial for long-term investment assessment. The company’s commercial production commenced in July 2018, and earlier reports from authoritative sources suggested a BWR B+ credit rating, indicating a stable financial health outlook even in its earlier stages of growth.
Purpose of the IPO Funds: Fueling Growth and Expansion
The funds raised through this IPO are earmarked for strategic initiatives that are expected to drive Shivashrit Foods’ next phase of growth. The primary objectives of the issue, as outlined by the company in its regulatory filings, are:
| Serial No. | Purpose | Amount (Rs. Millions) |
|---|---|---|
| 1 | Capital Expenditure (“Expansion Project”) | 263 |
| 2 | Working Capital Requirement for Expansion Project | 190 |
| 3 | General Corporate Purpose | Not specified |
A significant portion, Rs 263 million (Rs 26.3 crore), is allocated for Capital Expenditure, specifically for an “Expansion Project.” This suggests the company plans to increase its manufacturing capacity or upgrade its existing facilities, which is vital for meeting growing domestic and international demand. Another Rs 190 million (Rs 19 crore) will be used to bolster the working capital needed for this expansion project, ensuring smooth day-to-day operations as the company scales up. The remaining funds will be utilised for general corporate purposes, offering flexibility for various operational needs and strategic investments.
Market Sentiment and Grey Market Premium (GMP)
The market’s initial reaction to the Shivashrit Foods IPO appears positive. The Grey Market Premium (GMP) is currently reported at 9%, which suggests that investors expect the shares to list at a premium of approximately 9% over the IPO price. While GMP is an unofficial indicator and subject to fluctuations, it often reflects early market sentiment and can give a preliminary idea of potential listing gains. This positive indication, based on market analyst observations, aligns with the company’s strong financial performance and ambitious expansion plans.
The IPO is being managed by Mark Corporate Advisors, serving as the lead manager, and Maashitla Securities Private Limited has been appointed as the registrar for the issue. These entities play crucial roles in ensuring the smooth execution and management of the IPO process.
What Should Investors Consider?
As the Shivashrit Foods IPO opens for subscription, investors should carefully evaluate several factors. The company operates in a growing segment of the food processing industry, driven by increasing demand for convenience foods. Its established presence in international markets provides a diversified revenue stream, reducing dependence on a single geographical region. The planned capital expenditure and working capital infusion are strategic moves to enhance capacity and efficiency, which could lead to sustained growth.
However, like any investment, there are considerations. Investors should look into the company’s detailed financials, management expertise, and the competitive landscape of the potato flakes market. While the 36% revenue growth is impressive, the more modest 4% PAT growth warrants a closer look into cost structures and operating efficiencies. The listing on the NSE SME platform also implies a different risk-reward profile compared to mainboard listings, often with lower liquidity in the initial trading phases. Potential investors are advised to conduct their own thorough due diligence or consult with a SEBI-registered financial advisor before committing their capital.
With the IPO closing on August 26, 2025, and the shares expected to be credited on August 29, 2025, leading to a listing on September 1, 2025, investors have a clear timeline to consider their participation in Shivashrit Foods’ journey. The company’s robust financials
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