Shivashrit Foods Gears Up for IPO: A Flavorful Entry into the Capital Markets

Get ready for a savory investment opportunity as Shivashrit Foods, a prominent manufacturer of high-quality potato flakes, prepares to make its grand debut on the capital markets. The company has officially announced the specifics for its Initial Public Offering (IPO), set to open for subscription on December 14, 2023, offering investors a compelling chance to partake in its impressive growth story.

This SME IPO, slated for listing on the NSE Emerge platform, aims to successfully raise a substantial Rs 21.05 crore.

Shivashrit Foods has strategically set the issue price at a firm Rs 130 per share, with investors needing to bid for a minimum lot size of 1000 shares. This translates to a minimum investment of Rs 130,000 for retail investors keen on participating in this promising venture.

Investors should mark their calendars for these crucial dates: The subscription window will be open from December 14 to December 18, 2023.

Following this, the allotment of shares is anticipated on December 19, with refunds to non-allottees meticulously processed by December 20. Dematerialization of shares will occur on December 21, seamlessly paving the way for the company's highly anticipated listing on the NSE Emerge platform on December 22.

Behind the scenes, Inventure Merchant Banker Services Private Limited is expertly serving as the book-running lead manager for the issue, ensuring a smooth and efficient process.

Bigshare Services Private Limited has been appointed as the official registrar to the issue, diligently handling all aspects of share allocation and transfer with precision.

Shivashrit Foods, incorporated in 2022, has swiftly carved a significant niche for itself in the competitive food processing sector, specializing in the production of premium potato flakes and potato powder.

Their impressive and growing clientele includes well-known names such as Balaji Wafers, Madhuvan Foods, and Future Wafers, which stands as a clear testament to the consistent quality and reliability of their innovative products.

A closer look at the company's financials reveals a remarkably robust performance.

For the fiscal year ending March 31, 2023, Shivashrit Foods reported a compelling revenue of Rs 30.6 crore and a healthy profit after tax (PAT) of Rs 4.1 crore. The company proudly boasts a strong net profit margin of 13.4%, alongside an excellent Return on Equity (RoE) of 26.7% and Return on Capital Employed (RoCE) of 30.4%.

With a solid net worth of Rs 15.3 crore and a very manageable debt-to-equity ratio of 1.1x, the company appears financially sound and exceptionally well-positioned for significant future expansion.

The capital meticulously raised through this IPO is precisely earmarked for crucial business expansion and strategic growth initiatives.

A significant portion will be intelligently allocated to meet the company's working capital requirements, ensuring smooth operations and substantially increased production capacity. The remaining funds will be judiciously utilized for general corporate purposes, empowering Shivashrit Foods to pursue additional strategic initiatives, invest in research and development, and capitalize on emerging market opportunities.

The dedicated promoters, including Jayesh Rajnikant Doshi, Rakesh Rajnikant Doshi, Deepkumar Rakesh Doshi, Jayesh Doshi (HUF), and Rakesh Doshi (HUF), are confidently steering the company towards a bright and prosperous future.