An Ahmedabad-based sulphur-chemicals maker with a virtual monopoly in bisulphites opens its Rs 47.24 crore NSE SME issue on August 31
A manufacturer and supplier of sulphur-based inorganic chemicals to domestic and international markets plans to raise Rs 47.24 crore via an SME listing on NSE SME Emerge.
Shanti Inorganics Ltd (SIL), an Ahmedabad-based bisulphite chemicals producer holding one of the largest domestic production capacities in its category, opens for subscription on August 31 with the issue closing on September 2.
The firm operates in a specialised, high-barrier corner of the inorganic-chemicals industry — sulphur-based inorganic chemicals, principally the bisulphite family. Its product portfolio consists of ammonium bisulphite solution, sodium bisulphite powder or solution, sodium meta bisulphite and sodium sulphate powder/anhydrous.
These are workhorse industrial inputs used as preservatives, reducing agents, oxygen scavengers and process intermediates across a strikingly diverse set of end-markets — food and beverages, chemicals, oil drilling, pharmaceuticals, ceramics, agrochemicals, water treatment, petrochemicals, cosmetics, paints, polymers, boilers and mining.
The competitive position is the standout feature. SIL holds one of the largest domestic production capacities for bisulphite, at 18,800 MTPA (per a CareEdge report), and the company describes itself as enjoying a virtual monopoly in its niche.
It manufactures across food grade and technical grade, and holds quality and food-safety certifications including ISO 9001:2015, NSF, HACCP, Kosher and Halal — credentials that matter for the food-and-pharma-facing portion of demand and act as entry barriers.
The revenue base is diversified across customers and geographies. In the domestic market, SIL sold to 64 customers in FY2026 (48 in FY2025, 46 in FY2024), and in the international market to 20 customers in FY2026, spanning countries such as Eswatini, Malaysia, the UAE, Qatar, Nigeria, Russia, Colombia, Turkey, Puerto Rico, Iraq, Vietnam, Azerbaijan, Egypt, Ghana and the Philippines — a meaningful export footprint for a company of this size.
The growth story is a capacity expansion. SIL acquired land at Bavla, Ahmedabad to set up Manufacturing Unit II in two phases. Phase I commenced commercial production in February 2025 with an installed capacity of 18,000 MTPA.
Phase II, under development, is proposed to add a substantial 78,544 MTPA of sodium metabisulphite, sodium bisulphite and ammonium bisulphite across food and technical grades — an expansion that would lift total capacity to over 1.15 lakh MTPA.
The fresh IPO proceeds part-fund exactly this. The company had 66 employees as of May 31, 2026, and the promoters are Manojkumar Jayantilal Patel and Avnish Manojkumar Patel.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 31, 2026 |
| Issue Closes | September 2, 2026 |
| Listing | NSE SME Emerge |
| Listing Date | September 7, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 79 – Rs 83 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 47.24 crore (56,91,200 shares, entirely fresh) |
| Min. Application | 3,200 shares (multiples of 1,600 thereafter) |
| Min. Retail Investment | Rs 2,65,600 |
| Post-IPO Market Cap | Rs 143.15 crore |
| IPO as % of Post-IPO Capital | 33.00% |
| Lead Manager | Vivro Financial Services Pvt. Ltd. |
| Market Maker | Rikhav Securities Ltd. |
| Registrar | KFin Technologies Ltd. |
The issue is entirely a fresh issue. From the net proceeds, Rs 42.50 crore is earmarked for part-funding capex towards the new Bavla facility for manufacturing sodium meta bisulphite, sodium bisulphite powder and ammonium bisulphite, with the balance for general corporate purposes.
Two capital-history points are worth noting. Post-IPO, paid-up equity capital rises from Rs 11.56 crore (1,15,56,200 shares) to Rs 17.25 crore (1,72,47,400 shares) — a relatively larger SME base that supports eventual mainboard migration.
And the pre-IPO history shows the company issued further equity in the Rs 50–90 range between February 2011 and September 2025, and issued bonus shares in a hefty 15:1 ratio in August 2025; the promoters’ average cost of acquisition is just Rs 1.88 and Rs 2.47 per share, against a Rs 83 offer price.
GMP Watch
Grey-market interest has been healthy and steady. In tracked data, the Shanti Inorganics IPO GMP stood at around ₹31 as of August 31, having ranged between a low of ₹25 on August 24 and a high of ₹31 — implying a listing gain of roughly 37% over the Rs 83 upper band. As always, GMP is unofficial, unregulated and unendorsed.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 | 2M-FY27 (to May’26) |
|---|---|---|---|---|
| Total Income | 45.06 | 58.46 | 72.93 | 16.10 |
| Net Profit (PAT) | 5.12 | 7.99 | 10.22 | 2.50 |
| PAT Margin (%) | 11.35 | 13.67 | 14.01 | 15.53 |
| RoCE (%) | 27.59 | 27.16 | 23.40 | 4.45 |
Revenue has grown steadily — from Rs 45.06 crore in FY24 to Rs 72.93 crore in FY26 — a healthy trajectory, with a further Rs 16.10 crore of total income in the two months to May 31, 2026. Net profit has climbed in step, from Rs 5.12 crore to Rs 10.22 crore across the three fiscals, with Rs 2.50 crore in 2M-FY27.
Unlike several concurrent SME issues, the profit growth here looks steady rather than a single pre-IPO spike, which strengthens the quality of the earnings base.
Margins have expanded gradually, with PAT margin rising from 11.35% to 14.01% across FY24–FY26 and reaching 15.53% in the two-month FY27 stub — consistent, not lumpy. The company reported an average EPS of about Rs 8.14 and an average RoNW of 31.84% over the last three fiscals.
On book value, the issue is priced at a P/BV of 1.89 on the May 31, 2026 NAV of Rs 43.91, easing to 1.46x on the post-IPO NAV of Rs 56.81 at the upper cap — a reasonable multiple.
On earnings, the picture is fair. Annualise the FY27 run-rate onto the post-IPO fully-diluted capital and the P/E is about 9.54x; on FY26 earnings, it works out to 14.00x. On average earnings, the issue looks fully priced rather than cheap — a valuation with some cover from the monopoly position but limited room for disappointment.
Peer Comparison
As per the offer document, the company has no listed peers to compare with. That leaves the valuation without a direct benchmark, so the fully-priced tag rests on the company’s own average earnings and book value rather than a peer multiple.
Risks to Consider
Contingent liabilities are the standout concern. At Rs 107.99 crore, they are large relative to the company’s scale and post-IPO market cap, and any crystallisation could materially affect the financials — a red flag that warrants close reading of the RHP.
On average earnings the issue is fully priced (FY26 P/E of 14x), and with no listed peer to anchor it, there is little valuation cushion if the Bavla expansion or margins disappoint.
Execution risk sits on the expansion. Phase II at Bavla is a large step-up (proposed 78,544 MTPA), and the entire growth thesis depends on timely commissioning, customer approvals and demand off-take; the sharp drop in RoCE to 4.45% in the 2M-FY27 stub partly reflects newly deployed capital not yet generating returns.
Raw-material and cyclicality exposure is inherent — as a sulphur-chemicals maker, the business is exposed to input-price volatility and to the industrial and agrochemical demand cycles across its end-markets.