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Sheel Biotech Ltd.

Sheel Biotech Ltd.

SHEELBIOSME

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Overview

Sheel Biotech Limited, incorporated in 1991, is an ISO-certified company specializing in biotechnology and agriculture. The company operates across multiple segments, including the production of plants through tissue culture at its DBT-recognized lab, organic farming under various government schemes, manufacturing greenhouses, and providing green landscaping services. Sheel Biotech also promotes Farmer Producer Organizations (FPOs) to empower farmers and enhance their market access. With a strong focus on research and development, the company leverages Dutch technology at its Manesar facility, which has a production capacity of 10 million plants annually.

Opening Date

Sep 30, 2025

Closing Date

Oct 03, 2025

Listing Date

Oct 08, 2025

IPO Type

SME

IPO Status

Closed

Issue Size

34.02 Cr

Fresh Issue

34.02 Cr

Offer for Sale

Price Band

₹59 - ₹63

Lot Size

2000

IPO Timeline

Sep 30, 2025
Open Date
Oct 03, 2025
Close Date
Oct 06, 2025
Allotment Date
Oct 07, 2025
Initiation of Refunds
Oct 08, 2025
Listing Date

Financials

Revenue

Profit After Tax (PAT)

IPO Objective

The main objectives of the issue are to utilize the net proceeds for the following purposes:

  • Funding capital expenditure of ₹9.12 crores for expanding the current facility in Ghaziabad, Uttar Pradesh, to cultivate blueberries. This includes purchasing 30,000 mother plants, setting up a protected greenhouse structure, fencing, a water reservoir, a packhouse, and cold storage facilities.

  • Meeting working capital requirements of ₹15.88 crores to support incremental business needs, fund growth opportunities, and manage operational cash flows.

  • Financing general corporate purposes, which will not exceed 25% of the gross proceeds from the issue, to support overall business growth and strategic initiatives.

Key Performance Indicator

P/E Ratio

6.63

EPS

3.22

ROE

13.59%

ROCE

16.34%

RONW

13.59%

Debt to Equity Ratio

0.32

PAT Margin

10.51%

EBITDA Margin

14.71%

P/B

1.26

SWOT Analysis

Strengths

  • Diversified business model across tissue culture, organic farming, landscaping, and FPO promotion.

  • Over 30 years of operational history with an experienced management team and promoters.

  • Advanced R&D capabilities with a DBT-recognized lab and a large production capacity of 10 million plants.

  • ISO 9001:2015, 14001:2015 & 45001:2018 certifications, reflecting a commitment to quality and environmental standards.

Weaknesses

  • Significant revenue dependence on government tenders, making the business vulnerable to policy changes.

  • Operations are subject to seasonal fluctuations which can disrupt project timelines and impact revenues.

  • History of negative cash flows from operating activities, indicating potential working capital challenges.

  • The company's registered office is on rented premises, which poses a risk of relocation and operational disruption.

Opportunities

  • Capitalizing on the growing consumer demand for healthy and organic products, such as blueberries.

  • Expanding into high-value crop cultivation to diversify product offerings and enhance profitability.

  • Leveraging various government schemes and initiatives promoting organic farming and FPOs for further growth.

  • Tapping into the growing global and domestic plant tissue culture market.

Threats

  • Inherent risks in tissue culture, such as contamination and temperature variations, which can affect production.

  • Changes in government policies, budget allocations, or delays in tender processes could adversely impact revenue.

  • Intense competition from other players in the biotechnology and agri-business sectors.

  • Macroeconomic factors like economic slowdowns, inflation, and pandemics can negatively affect business operations.

Subscription Rate

CategoryShares Bid ForShares OfferedTimes Subscribed
Qualified Institutional Buyers25.64 L25.64 L1.00x
Non-Institutional Investors3.24 L7.71 L0.42x
Retail Individual Investors2.61 Cr27.79 L9.38x
Total3.15 Cr61.13 L5.14x