A Delhi-based agrochemical formulations maker is raising Rs 14.01 crore through a BSE SME issue.
Shivchem Agro is an agrochemical formulations company. It manufactures, stocks, distributes and sells crop-protection and plant-nutrition products, including insecticides, fungicides, herbicides, plant growth regulators, rodenticides and fertilisers.
Its products come in solid forms such as powders and liquid forms such as emulsifiable concentrates, and it holds ISO 9001:2015, ISO 22000:2018 and ISO 31000:2018 certifications. This is formulation work: the company buys technical-grade active ingredients and turns them into finished products that farmers can use. It does not make the molecules itself.
It was incorporated as a private company on September 12, 2021, and converted into a public company in November 2024. Its product licences show the pace of that growth, rising from 35 in FY23 to 232 in FY24 and 258 in FY25.
Today it holds licences under the Insecticides Act, 1968 for 176 agrochemical products (88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators and 3 rodenticides), plus authorisation for 82 fertilisers under the Fertilizer Control Order, 1985.
Manufacturing takes place at a single 22,680 sq ft plant in Barhana village, Jhajjar, Haryana. The plant has automated filling and packaging lines, an effluent treatment plant and a wet scrubber, and its annual capacity is about 65.1 lakh kg/litre.
Herbicides are the biggest product line, contributing 43.5% of FY26 revenue. Insecticides contributed 30.3% and fungicides 15.8%, and the herbicide share has risen from 34.1% in FY24.
Distribution relies entirely on distributors and is concentrated outside the company’s home region. SAL is licensed to sell in eight states: Andhra Pradesh, Telangana, Odisha, Assam, Bihar, West Bengal, Uttar Pradesh and Madhya Pradesh.
As of March 31, 2026, it had 685 distributors, supplied through five godowns in those states. The business is entirely domestic, with no export revenue and only domestic raw-material suppliers. The company had 66 employees at year-end. It is promoted by Rohit Agarwal, Sachin Agarwal and Deepa Agarwal.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 28, 2026 |
| Issue Closes | September 30, 2026 |
| Allotment (expected) | October 1, 2026 |
| Listing | BSE SME |
| Listing Date (tentative) | October 6, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 59 – Rs 62 per share |
| Face Value | Rs 5 |
| Issue Size | Rs 14.01 crore (22,60,000 shares, entirely fresh) |
| Market Maker Reservation | 1,14,000 shares |
| Lot Size | 2,000 shares |
| Min. Retail Application | 4,000 shares (2 lots) |
| Min. Retail Investment | Rs 2,48,000 |
| Post-IPO Market Cap | Rs 46.70 crore |
| IPO as % of Post-IPO Capital | 30.00% |
| Lead Manager | Shannon Advisors Pvt Ltd |
| Market Maker | Nikunj Stock Brokers Ltd |
| Registrar | Maashitla Securities Pvt Ltd |
| Underwriting | 50% Shannon Advisors, 50% Fincos Technology Solutions |
The issue is entirely fresh. From the net proceeds, SAL will use Rs 6.90 crore for working capital and Rs 3.50 crore for debt repayment, with the rest going to general corporate purposes. This is a balance-sheet raise, largely funding the working capital that has grown with sales, rather than new capacity.
Post-IPO, paid-up equity capital rises from Rs 2.64 crore (52,72,873 shares) to Rs 3.77 crore (75,32,873 shares).
Price Band
At the Rs 62 upper band, with FY26 earnings attributed to the fully diluted post-IPO equity, the issue is valued at a P/E of about 14.39x, or 17.97x on FY25 earnings. The Rs 46.70 crore market cap is about 1.4 times FY26 revenue.
GMP
The grey market shows a modest positive signal at at ₹6. That implies an indicative listing price of about ₹68
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 10.95 | 27.50 | 33.84 |
| Net Profit (PAT) | 1.29 | 2.60 | 3.25 |
| PAT Margin (%) | 11.82 | 9.47 | 9.61 |
| RoCE (%) | 37.55 | 31.99 | 30.04 |
Total income rose about 151% in FY25 and a further 23% in FY26. Net profit roughly doubled in FY25 and grew another 25% in FY26. The company reported an average EPS of Rs 8.50 and a strikingly high average RoNW of 55.13%, although that figure is flattered by a very small equity base.
PAT margin dropped from 11.82% to about 9.5%, and RoCE eased from 37.55% to 30.04%.
In FY26, trade receivables stood at Rs 16.94 crore against revenue of Rs 33.84 crore, which works out to roughly six months of sales outstanding. That’s more than five times annual profit and more than the company’s entire pre-IPO net worth of about Rs 12.9 crore.
Peer Comparison
| Company | P/E (x) |
|---|---|
| Shivchem Agro (FY26, post-IPO) | 14.39 |
| Super Crop | 32.0 |
| Sikko Industries | 47.0 |
Peer P/Es as of September 25, 2026.
Super Crop and Sikko Industries are listed peers. Analysts caution that they aren’t truly comparable, and describe the comparison as little more than window-dressing. On paper Shivchem looks cheap against them, but differences in scale, product mix, listing history and liquidity make the gap a weak guide to value.
Risks to Consider
Receivables and working-capital strain. With receivables at about half of annual revenue and exceeding pre-IPO net worth, cash conversion is the central risk. Any distributor stress, whether from a poor monsoon, farm-income pressure or tighter credit, could delay collections or force write-offs.
A short track record and rapid scale-up. The company is only four years old, and most of its growth came in the year before the IPO. There isn’t yet a full crop cycle of evidence that the FY25–FY26 trajectory can last.
A crowded, commoditised market. Formulations is a fragmented, price-driven segment where companies compete on distributor terms. Profits depend on raw-material costs, which by some estimates account for about 63% of expenses, and on the monsoon, which can squeeze margins quickly.
Concentration. All production comes from one Haryana plant, sales are limited to eight states, and herbicides now make up over 43% of revenue. That leaves little buffer against a local disruption, a regulatory action on specific molecules or a weak season for one product category.
SME-specific risks. Post-IPO equity is just Rs 3.77 crore, which analysts say points to a long wait before any migration to the main board. Liquidity on the SME platform is thin, and the minimum retail ticket is Rs 2.48 lakh.
