Shanti Inorganics Limited IPO
Shanti Inorganics Limited IPO closed on 2 Sept 2026. Allotment 3 Sept 2026, listing 7 Sept 2026. Price band ₹79–₹83, lot 1600 shares, GMP +₹54 (65.06%). Track allotment on Allotly.
| Status | Closed |
|---|---|
| Category | SME · NSE |
| Price band | ₹79–₹83 |
| Lot size | 1600 shares |
| Minimum investment | ₹2,65,600 |
| Issue size | ₹47.24 Cr |
| GMP | +₹54 (65.06%) |
| Open date | 31 Aug 2026 |
| Close date | 2 Sept 2026 |
| Allotment date | 3 Sept 2026 |
| Listing date | 7 Sept 2026 |
| Registrar | KARVY |
About Shanti Inorganics Limited
Shanti Inorganics is engaged in the manufacturing and supply of sulphur-based inorganic chemicals. Its product portfolio includes ammonium bisulphite solution, sodium bisulphite powder and solution, sodium metabisulphite, and sodium sulphite powder/anhydrous. These products are used as preservatives, reducing agents, oxygen scavengers, and process intermediates across industries such as food and beverages, chemicals, oil drilling, pharmaceuticals, ceramics, agrochemicals, water treatment, petrochemicals, cosmetics, paints, polymers, boilers, and mining. The company operates two manufacturing units in Ahmedabad, Gujarat. Manufacturing Unit I at Vatva has an installed capacity of 18,800 metric tonnes per annum (MTPA), while Phase I of Manufacturing Unit II at Bavla commenced commercial production in February 2025 with an installed capacity of 18,000 MTPA. Phase II of the Bavla facility is…
Strengths
- The company claims to have a geographically diversified export presence. Exports contributed Rs 4.66 crore (29.28%), Rs 30.03 crore (42.57%), Rs 30.34 crore (53.83%), and Rs 22.31 crore (50.08%) to revenue from operations in the period ended May 31, 2026, FY26, FY25, and FY24, respectively, with key export markets being Eswatini, Malaysia, the United Arab Emirates, Qatar, Nigeria, Russia, Colombia, Turkey, Puerto Rico, Iraq, Vietnam, Azerbaijan, Egypt, Ghana, and the Philippines.
- The company claims to have developed long-term relationships with customers across multiple industries, including food and beverages, chemicals, oil drilling, pharmaceuticals, ceramics, agrochemicals, water treatment, petrochemicals, cosmetics, paints, polymers, boilers, and mining. Four of its customers have been associated with the company for more than five years as of FY26.
- The company claims that its manufacturing facilities are strategically located close to industries that generate liquefied sulphur dioxide (SO2), providing access to key raw materials such as liquid SO2, sodium carbonate, sodium hydroxide, and liquid ammonia. According to the company, this proximity helps reduce logistics costs and lead times and, along with its long-term relationships with key suppliers, supports a consistent and cost-effective supply chain.
- The company has seen a consistent increase in revenue from operations and PAT. Revenue from operations increased from Rs 44.87 crore in FY24 to Rs 57.10 crore in FY25 to Rs 71.22 crore in FY26, while PAT increased from Rs 5.11 crore in FY24 to Rs 7.99 crore in FY25 to Rs 10.22 crore in FY26.
Risks
- The company derives a substantial portion of its revenue from the food and beverages, chemicals and oil drilling industries. Revenue from the food and beverages industry stood at Rs 25.28 crore (35.84%) in FY26, Rs 23.02 crore (40.84%) in FY25, and Rs 16.81 crore (37.75%) in FY24. Revenue from the chemical industry stood at Rs 15.78 crore (22.38%), Rs 8.88 crore (15.76%), and Rs 7.40 crore (16.62%) for FY26, FY25, and FY24, respectively. Any material decline in the performance of these industries, or failure to sustain, grow or efficiently manage sales within these industries, could adversely impact the company's business operations, financial condition and results of operations.
- Revenue from its top 10 customers stood at Rs 11.30 crore (71.03%), Rs 44.68 crore (63.35%), Rs 38.42 crore (68.15%) and Rs 30.02 crore (67.41%) in the period ended May 31, 2026, FY26, FY25 and FY24, respectively. Loss of these customers or reduction in business from them could hurt the company’s business, financial condition, and cash flows.
- The company does not maintain long-term contractual arrangements with the majority of its customers, with sales primarily governed by transactional purchase orders that can be amended, postponed, or cancelled. Loss of key customers or a significant cut in demand could adversely affect the company's business, finances, and cash flows.
- The company operates in a competitive industry where pricing is a key differentiator. Increased price competition, entry of new players, changes in customer preferences, or adoption of advanced technologies by competitors could put pressure on its margins and adversely affect the company's business, financial condition, and results of operations.
- The company's cost of materials consumed represented 38.79%, 40.76%, and 45.29% of total income for FY26, FY25 and FY24, respectively. A sharp rise in raw material costs that cannot be passed on to customers could reduce the company's profit margins and hurt its business.
- The company has not entered into long-term supply arrangements with its suppliers and is dependent on third-party suppliers for raw materials. Purchases from the top five suppliers stood at Rs 20.45 crore (70.08%), Rs 15.98 crore (65.40%) and Rs 13.51 crore (65.99%). Any inability of suppliers to deliver required materials at competitive prices and within the required time could adversely affect the company's business operations and profitability.
- As of the period ended May 31, 2026, the company had outstanding financial indebtedness of Rs 34.85 crore. Failure to service or repay these loans on time can harm the company’s operations and financial position.