Shree Pushkar plans Rs 70 crore Unit-5 3,000-MTPA plant

Shree Pushkar Chemicals & Fertilisers Limited plans a Rs 70 crore Unit-5 chemical plant with 3,000 metric tonnes per annum (MTPA) of proposed capacity, tentatively due by March 2028. Shree Pushkar said the project would be financed through a preferential issue to its promoter and internal accruals, with the stated rationale of meeting growing customer demand.

What is Shree Pushkar building at Unit-5?

Shree Pushkar is proposing a 3,000-MTPA chemical plant at Unit-5, requiring investment of Rs 70 crore. The company’s Annexure A disclosure identifies this as a capacity addition, rather than an upgrade measured against an existing disclosed production level. It does not name the chemical product or products to be manufactured at the new facility.

The disclosure lists both existing capacity and existing capacity utilisation as “NA”. As a result, the filing does not allow a calculation of the percentage increase in Shree Pushkar’s chemical capacity, nor does it indicate the operating utilisation from which the proposed 3,000-MTPA addition would start. The only disclosed output measure is the new plant’s 3,000-MTPA proposed capacity.

Shree Pushkar’s stated rationale is “to cater the growing demand of customers.” That establishes the demand objective behind the Rs 70 crore proposal, but the announcement provides no customer names, order volumes, committed offtake, pricing assumptions or segment-wise demand data. The capacity announcement therefore sets out the intended supply addition without quantifying the demand it is designed to serve.

How will Shree Pushkar fund the Rs 70 crore project?

Shree Pushkar says the Rs 70 crore Unit-5 investment will be financed through a preferential issue to the promoter of Shree Pushkar and internal accruals. The announcement does not allocate a stated rupee amount between those two funding sources, so it does not specify how much of the 3,000-MTPA project will be paid from promoter capital and how much will be generated internally.

In the accompanying preferential-issue disclosure, Shree Pushkar proposes to issue up to 854,060 fully convertible warrants at Rs 526.90 each, for an aggregate amount of up to Rs 45.0004214 crore. Each warrant carries an entitlement to subscribe to one equity share with a face value of Rs 10. The stated warrant amount is lower than the Rs 70 crore Unit-5 investment, leaving Rs 24.9995786 crore of the announced project cost not covered by the maximum warrant issue amount alone.

The proposed warrant issue, at up to Rs 45.0004214 crore, is equivalent to about 64.3% of the Rs 70 crore project investment. This comparison does not mean all warrant proceeds will necessarily be deployed at Unit-5, because the filing does not expressly earmark the issue proceeds for the plant. It does show why internal accruals are also identified as a funding source in Annexure A.

The warrants have a tenure of no more than 18 months from allotment, and the holder may exercise them in one or more tranches during that period. Shree Pushkar says that unexercised warrants will lapse after 18 months and amounts paid on them will be forfeited. The filing therefore describes a proposed funding mechanism whose final equity conversion depends on exercise within that 18-month window.

When does Shree Pushkar expect Unit-5 to be ready?

Shree Pushkar tentatively expects the 3,000-MTPA Unit-5 capacity to be added by March 2028. The use of “tentatively” means March 2028 is the company’s indicated timing, not a fixed commissioning date stated in the disclosure. No construction-start date, regulatory approval milestone, equipment-order schedule or phased commissioning plan is provided.

The March 2028 target gives the project a disclosed timeline of roughly 16 months from the 2 November 2026 announcement date. However, the filing does not state whether the Rs 70 crore estimate includes land, civil construction, machinery, utilities, working capital or commissioning costs. It also does not disclose whether Unit-5 is an existing location or a newly developed manufacturing site.

The company has not supplied an annualised revenue, margin, profit or return-on-investment estimate for the 3,000-MTPA plant. Consequently, the disclosed March 2028 target should be read as a capacity-addition deadline, while the financial contribution after commissioning remains unspecified. The project’s commercial impact will depend on factors that the announcement does not quantify, including product mix, utilisation and sales realisation.

What does Shree Pushkar’s filing show about its financial backdrop?

Shree Pushkar reported net cash flow from financing activities of Rs 62.94 crore for the half year ended 30 September 2026, compared with Rs 15.1077 crore for the half year ended 30 September 2025. The increase of Rs 47.8323 crore was accompanied by net proceeds from financial borrowings of Rs 69.6579 crore in the 2026 half year, versus Rs 17.8481 crore a year earlier.

Over the same two half-year periods, cash used for investing activities was Rs 37.4933 crore in the half year ended 30 September 2026, compared with Rs 38.6279 crore in the half year ended 30 September 2025. Within investing cash flow, purchase, sale or construction of property, plant and equipment, including capital work-in-progress, used Rs 21.1508 crore in 2026, versus Rs 25.0703 crore in 2025.

These reported cash-flow movements provide context for the Rs 70 crore expansion plan but do not establish its final financing mix. Annexure A specifically identifies promoter preferential capital and internal accruals, while the half-year cash-flow statement records financial activity through 30 September 2026. Shree Pushkar has not disclosed a project-specific borrowing amount, a separate internal-accrual target or a revised capital-expenditure programme for Unit-5.

Conclusion

Shree Pushkar has disclosed a defined Unit-5 expansion: a Rs 70 crore chemical plant designed for 3,000 MTPA and tentatively scheduled for March 2028. The filing gives investors the project cost, proposed capacity, timing and broad financing route, but it does not disclose the product, existing Unit-5 capacity, utilisation, expected sales or projected profitability.

The next disclosed milestone to watch is progress toward the tentative March 2028 capacity-addition date, alongside the proposed preferential issue of up to 854,060 warrants worth Rs 45.0004214 crore. Investors will also need future disclosures to clarify the amount funded by internal accruals, warrant conversion progress and whether the plant’s scope, cost or commissioning schedule changes.