SHIVCHEM AGRO LIMITED IPO

SHIVCHEM AGRO LIMITED IPO closed on 30 Sept 2026. Allotment 1 Oct 2026, listing 6 Oct 2026. Price band ₹59–₹62, lot 2000 shares, GMP +₹1.5 (2.42%). Track allotment on Allotly.

About SHIVCHEM AGRO LIMITED

Shivchem Agro is an agrochemical company engaged in the manufacturing, stocking, distribution, and sale of agricultural formulations in India. Its product portfolio comprises insecticides, fungicides, herbicides, plant growth regulators, rodenticides and fertilisers, offered in solid and liquid formulations for crop protection and agricultural applications. The company is licensed to sell, stock, exhibit, and distribute its products across eight states: Andhra Pradesh, Telangana, Odisha, Assam, Bihar, West Bengal, Uttar Pradesh, and Madhya Pradesh. As of March 31, 2026, it had 685 distributors and operated five godowns across these states. Its manufacturing facility is located in Jhajjar, Haryana, and is equipped with an effluent treatment plant and wet scrubber unit. The company is ISO 9001:2015, ISO 22000:2018, and ISO 31000:2018 certified and has obtained the required pollution…

Strengths

• The company claims to offer a diversified portfolio of agrochemical products, with licenses under the Insecticides Act, 1968, for 176 products, comprising 88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators, and 3 rodenticides. It also holds a license under the Fertiliser Control Order, 1985, for manufacturing 82 fertilisers, enabling it to cater to varied agricultural requirements.
• The company claims to have developed relationships with distributors across multiple states, supporting its product reach and sales. As of March 31, 2026, it had 685 distributors supported by a 39-member sales and marketing team.
• The company claims to conduct on-field product demonstrations to provide farmers with guidance on product dosage and application techniques. These campaigns are conducted by a six-member team comprising field officers and a marketing development officer. The company also provides demonstration videos through its website and YouTube channel to support farmer education and product awareness.
• The company claims to have a manufacturing facility in Jhajjar, Haryana, spread across 22,680 sq. ft., equipped with machinery and equipment capable of manufacturing a wide range of agrochemical products. The facility is also stated to have an effluent treatment plant for wastewater management and a wet scrubber unit for controlling air emissions and removing pollutants.
• The company claims to have fully automatic filling and packaging machines to improve operational efficiency, reduce manual intervention, and minimise errors and labour requirements. Capital expenditure towards additions to plant and machinery amounted to Rs 2.30 crore in FY25 and Rs 0.11 crore in FY24, supporting investments in automation and manufacturing efficiency.
• The company has seen a consistent increase in revenue from operations and PAT. Revenue from operations increased from Rs 10.94 crore in FY24 to Rs 27.46 crore in FY25 to Rs 33.81 crore in FY26, while PAT increased from Rs 1.29 crore in FY24 to Rs 2.60 crore in FY25 to Rs 3.25 crore in FY26.

Risks

• The company’s net cost of materials consumed stood at Rs 18.67 crore in FY26, Rs 15.24 crore in FY25 and Rs 5.64 crore in FY24, representing 63.41%, 63.54% and 61.14% of total expenses, respectively. The company typically procures raw materials through purchase orders without long-term supply contracts, exposing it to price volatility arising from commodity prices, currency movements, climatic conditions, production and transportation costs, and regulatory or trade changes. Any increase in raw material costs that cannot be passed on through higher product prices could adversely affect margins, profitability, and financial condition.
• The company depends on a limited number of suppliers for its raw materials. Its top 10 suppliers accounted for 71.29% of purchases in FY26, 83.81% in FY25, and 77.35% in FY24. Any failure or disruption in procuring raw materials from these suppliers could affect manufacturing operations, product availability, and results of operations.
• The company’s business is sensitive to seasonal variations and unpredictable weather conditions affecting agricultural activity. Erratic monsoons, droughts, and floods may disrupt farming cycles, reduce crop yields, and affect the timing and extent of agrochemical applications. Changes in pest patterns and extreme weather conditions may also affect demand for pesticides and fertilisers, potentially adversely impacting the company’s business, results of operations, and financial condition.
• The company derives its entire revenue from the domestic Indian market, with significant dependence on Andhra Pradesh and Assam. Revenue from Andhra Pradesh stood at Rs 11.49 crore in FY26, Rs 15.21 crore in FY25 and Rs 4.58 crore in FY24, contributing 33.98%, 55.39% and 41.88%, respectively. Revenue from Assam was Rs 7.04 crore, Rs 6.37 crore and Rs 2.43 crore, contributing 20.82%, 23.19% and 22.23%, respectively. Any slowdown or adverse developments in these markets could adversely affect the company’s business, results of operations, and financial condition.
• The company and its promoters are involved in ongoing criminal and material proceedings. Any adverse judgments in the cases could be detrimental to the company’s business prospects.
• The company reported negative cash flows from operating activities of Rs 3.00 crore in FY25 and Rs 4.34 crore in FY24. Negative operating cash flows were primarily due to working capital deployment towards inventories and trade receivables. Investing cash flow was negative at Rs 2.91 crore in FY25 and Rs 1.32 crore in FY24, mainly due to purchases of property, plant and equipment and intangible assets of Rs 2.95 crore and Rs 1.32 crore, respectively. Financing cash flow was negative at Rs 2.32 crore in FY26, primarily due to interest and finance costs of Rs 1.34 crore, repayment of long-term borrowings of Rs 5.52 crore and repayment of short-term borrowings of Rs 1.05 crore. Continued negative cash flows could adversely affect the company’s liquidity, financial condition and ability to fund its operations and growth plans.
• As of FY26, the company’s trade receivables were Rs 16.93 crore. Failure to collect these receivables on time, or at all, can negatively impact the business and its financial condition.
• As of FY26, the company had outstanding financial indebtedness of Rs 7.27 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.

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