Shanti Inorganics Ltd. IPO: issue size, price band, subscription, GMP and listing details

Shanti Inorganics Limited, a Gujarat-based manufacturer of sulphur-based inorganic chemicals, launched a ₹47.24 crore SME initial public offering (IPO) as a 100% fresh issue (no offer for sale). The IPO was priced in a band of ₹79 to ₹83 per share and was open from 31 August 2026 to 2 September 2026, with listing on 7 September 2026. Since there was no offer for sale (OFS), the proceeds were intended for the company, primarily to part-fund capital expenditure for Phase II at its Bavla manufacturing unit and for general corporate purposes.

Business overview: sulphur-based inorganic chemicals across regulated end-markets

Shanti Inorganics Limited manufactures and supplies sulphur-based inorganic chemicals, including ammonium bisulphite, sodium bisulphite (powder and solution), sodium metabisulphite, and sodium sulphite anhydrous. These products are used as preservatives, reducing agents, oxygen scavengers, and process intermediates.

The company supplies to multiple end-markets such as food and beverages, water treatment, oil drilling, pharmaceuticals, and chemicals. It reports that exports contribute a material share of revenue, alongside domestic sales, with exports to multiple countries.

Manufacturing operations are located in Vatva and Bavla (Ahmedabad, Gujarat). The company highlights quality and food-safety certifications, including ISO 9001:2015, NSF, HACCP (Hazard Analysis and Critical Control Points), Kosher, and Halal, which are relevant for regulated applications and certain export requirements.

Capacity, footprint and milestones disclosed in the offer documents

Shanti Inorganics was incorporated in 2010 as Shanti Inorgo Chem (Guj) Private Limited and took over the running business of the partnership firm Shanti Industries on a going-concern basis. It received ISO 9001:2015 certification in 2016.

The company disclosed that it began exports to Middle East countries during the 2020–22 period and secured a major export project for ammonium bisulphite for 500 metric tonnes per year during the same period. It also acquired land in Bavla for Phase I of the Bavla unit (2020–22).

On capacity additions, the company reported expansion at its Vatva unit from 10,700 MTPA (metric tonnes per annum) to 16,200 MTPA in FY2023, and to 18,800 MTPA in FY2025. It also disclosed entering Southeast Asian and African markets during FY2023–24 and acquiring additional land at Bavla for Phase II during FY2023–24.

In FY2025, the company converted into a public limited company and changed its name to Shanti Inorganics Limited. It commenced commercial production at Phase I of the Bavla unit in February 2025. For FY2026, it disclosed revenue from operations of over ₹7,000 lakhs.

Financial trajectory and disclosed profitability and return metrics

Across FY2024 to FY2026, Shanti Inorganics reported an increase in total revenue and profit after tax (PAT), alongside growth in total assets. The financial statements also show an expanding PAT margin over the three financial years presented.

The offer disclosures also provide key performance indicators (KPIs) such as earnings per share (EPS), return ratios including return on equity (ROE), return on capital employed (ROCE) and return on net worth (RoNW), and leverage through the debt-to-equity ratio. Profitability metrics disclosed include EBITDA margin (EBITDA defined as earnings before interest, tax, depreciation and amortisation, presented as a margin percentage) and PAT margin.

At the price band level, the company disclosed a pre-IPO price-to-earnings (P/E) multiple and a price-to-book multiple, along with EPS and balance-sheet ratios. These indicators are typically read alongside business scale, capacity utilisation trajectory after expansion, and the end-market mix between domestic and exports.

IPO structure, investor demand, GMP trend and listing outcome

The IPO was an SME issue with a price band of ₹79 to ₹83 and a lot size of 1,600 shares. The minimum application amount at the upper end of the band worked out to ₹1,32,800, as per the disclosed lot and price band. Application categories in the offer details included Regular (up to ₹2 lakhs) and High Networth Individual (above ₹2 lakhs).

The issue was subscribed 3.89 times overall. By investor category, retail individual investors subscribed 5.18 times, non-institutional investors subscribed 3.93 times, and qualified institutional buyers subscribed 1.63 times. Reservation percentages were disclosed as 50% for QIB, 15% for NII and 35% for retail.

The offer documents also disclosed anchor-related parameters, including that up to 60% of the QIB portion could be allocated to anchor investors and that 33.33% of the anchor allocation was reserved for domestic mutual funds.

Grey market premium (GMP) is an unofficial indicator outside exchange trading and can change quickly. In the latest 10 observations available for this IPO (4 September 2026 to 7 September 2026), the GMP moved between ₹34 and ₹55 against a referenced issue price of ₹83.

On listing, Shanti Inorganics shares listed on 7 September 2026 at ₹157.70, which corresponds to a listing gain of 90.00% over the issue price.

Fresh issue proceeds: Bavla Phase II capex and general corporate purposes

Because the IPO was fully a fresh issue, the proposed net proceeds (gross proceeds less issue-related expenses) were intended to be deployed by the company rather than distributed to selling shareholders.

The primary stated object was to part-fund capital expenditure for setting up a new facility for manufacturing sodium metabisulphite, sodium bisulphite powder and ammonium bisulphite at Bavla, Ahmedabad, Gujarat (the proposed project). The IPO narrative describes Phase II of the Bavla unit, including new plant and machinery such as a sulphur burner and systems for ammonium bisulphite and sodium metabisulphite.

The positioning around the capex programme includes intended outcomes such as capacity expansion, improved energy efficiency, and higher automation and quality consistency. The balance of the proceeds was proposed to be used for general corporate purposes, as disclosed.

As with any primary issuance, these are proposed uses of funds; the offer documents describe intended deployment rather than completed spending.

Key risks highlighted in disclosures and post-listing monitoring points

The company’s disclosures flag concentration and operating-dependency considerations that can influence volumes, pricing and profitability.

Revenue exposure is concentrated across food, chemicals and oil drilling end-markets (together stated as more than 65% of revenue), implying that changes in any of these segments can affect sales and cash generation. The disclosures also indicate customer concentration, where top customers contribute a large share of revenue; in such structures, changes in purchasing patterns of large accounts can affect volumes.

Sales are described as largely purchase-order based, which can reduce forward visibility because customers can delay or cut orders. On the input and operations side, the company highlights reliance on a concentrated supplier base (with the top five suppliers forming a large share of purchases) and reliance on third-party logistics without long-term contracts.

The risk list also includes external factors such as environmental and safety compliance requirements for inorganic chemical manufacturing, volatility or supply disruptions in sulphur-based feedstocks, energy-cost inflation, logistics bottlenecks affecting exports, and competitive intensity where price, quality and regulatory compliance are key differentiators.

Monitoring points after listing, based on the disclosed business model and issue objectives:

Execution progress and timelines for Bavla Phase II, including commissioning and ramp-up for the targeted product lines.

The domestic-versus-export revenue mix and additions of new export geographies, where expansion is stated to be subject to regulatory approvals.

Customer concentration trends and order visibility, given the purchase-order driven nature of sales.

Movement in input availability and pricing for sulphur-based feedstocks, alongside changes in leverage as capex is executed.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.