Charting the Course: A Deep Dive into Shreeji Global FMCG Ltd.'s Upcoming SME IPO
**Unveiling Shreeji Global FMCG Ltd.: A Dive into the Business**
In the vibrant and ever-evolving Indian consumer market, Shreeji Global FMCG Ltd. is preparing to make its public debut on the NSE SME platform. This company operates in the essential Fast-Moving Consumer Goods (FMCG) sector, specializing in a diverse array of food products that cater to daily household needs. With its brand "SHETHJI," Shreeji Global has carved a niche in providing high-quality ground and whole spices, various seeds, grains, pulses, and flours.
The company's business model encompasses both domestic sourcing and international imports. They bring in agro-commodities like Madagascar Cloves, Coriander seeds from UAE, Desiccated Coconut from Sri Lanka, and various spices from Vietnam, which are then processed at their state-of-the-art facilities. Their distribution network is extensive, serving individual traders, small enterprises, and large corporate entities alike.
Shreeji Global FMCG boasts two strategically located manufacturing and processing units in Rajkot and Morbi, regions known for their agricultural produce and industrial infrastructure. This strategic positioning, coupled with a wide-ranging product portfolio, experienced leadership, and a diversified customer base, underpins its strong competitive advantage in a dynamic market.
**The Investment Opportunity: IPO at a Glance**
Shreeji Global FMCG's Initial Public Offering (IPO) is a book-built issue aiming to raise ₹85.00 crores. This offering consists entirely of a fresh issue of 68,00,000 equity shares.
**Key IPO Details:**
- Issue Price Band: ₹120 to ₹125 per equity share
- Face Value: ₹10 per share
- Minimum Lot Size: 1,000 shares
- Minimum Retail Investment: ₹2,50,000 (2,000 shares, based on upper price band)
- Listing Platform: NSE SME
**Understanding the Application Lot Sizes:**
| Investor Category | Minimum Lots | Minimum Shares | Minimum Amount |
|---|---|---|---|
| Individual Investors (Retail) | 2 | 2,000 | ₹2,50,000 |
| Small High Net-worth Individuals (sHNI) | 3 | 3,000 | ₹3,75,000 |
| Big High Net-worth Individuals (bHNI) | 9 | 9,000 | ₹11,25,000 |
**IPO Journey: Key Dates to Remember**
For prospective investors, understanding the IPO timeline is crucial for planning their application and tracking the listing process.
| Event | Date (Tentative) | Status |
|---|---|---|
| Anchor Investor Bid Date | Nov 3, 2025 | Completed |
| IPO Open Date | Nov 4, 2025 | Ongoing |
| IPO Close Date | Nov 7, 2025 | Upcoming |
| Allotment Finalization | Nov 10, 2025 | Expected |
| Initiation of Refunds | Nov 11, 2025 | Expected |
| Credit of Shares to Demat Account | Nov 11, 2025 | Expected |
| Listing Date | Nov 12, 2025 | Expected |
**Subscription Breakup: Who Gets What?**
The IPO allocation is structured to ensure participation from various investor categories. Anchor investors have already committed ₹14.53 crore, securing 17.09% of the total issue.
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker Portion | 3,40,000 | 5.00% |
| Qualified Institutional Buyers (QIB) | 19,38,000 | 28.50% |
| - Anchor Investors | 11,62,000 | 17.09% |
| - QIB (Ex-Anchor) | 7,76,000 | 11.41% |
| Non-Institutional Investors (NII/HNI) | 13,56,000 | 19.94% |
| Retail Individual Investors (RII) | 31,66,000 | 46.56% |
| Total Shares Offered | 68,00,000 | 100.00% |
**Financial Health Check: A Glimpse at the Books**
A strong financial track record is often a key indicator of a company's potential. Shreeji Global FMCG Ltd. has demonstrated consistent growth in its recent financial performance.
**Key Financial Highlights (₹ Crore):**
| Period Ended | Total Income | Profit After Tax (PAT) | Net Worth |
|---|---|---|---|
| Aug 31, 2025 (5 months) | 251.18 | 9.20 | 38.76 |
| Mar 31, 2025 | 650.85 | 12.15 | 29.56 |
| Mar 31, 2024 | 588.99 | 5.47 | 17.22 |
| Mar 31, 2023 | 468.70 | 2.05 | 9.01 |
**Performance Indicators (as of March 31, 2025):**
- Return on Equity (ROE): 51.74%
- Return on Capital Employed (ROCE): 32.07%
- Debt/Equity Ratio: 1.03
- PAT Margin: 1.87%
- Market Capitalization: ₹284.50 Crores
The company's revenue increased by 11% and profit after tax (PAT) surged by 122% between the fiscal years ending March 31, 2024, and March 31, 2025, showcasing robust growth.
**Utilizing the Capital: Objectives of the Issue**
The funds raised through this IPO are earmarked for strategic expansion and operational enhancements, crucial for sustaining the company's growth trajectory.
**Planned Utilization of Net Proceeds:**
- Funding capital expenditure for new factory premises (₹5.67 Crores).
- Investment in plant and machinery, and establishing cold storage facilities (₹29.01 Crores).
- Capital expenditure for solar power installation for internal consumption (₹4.05 Crores), highlighting a commitment to sustainable practices.
- Meeting working capital requirements (₹33.54 Crores) to support scaling operations.
- General corporate purposes, providing flexibility for strategic initiatives.
**Behind the Scenes: Promoters & Supporting Cast**
The leadership and operational support are critical to any company's success. Shreeji Global FMCG Ltd. is guided by its promoters and supported by key intermediaries for its IPO.
**Promoter Group & Holding:**
- The company is promoted by Jitendra Kakkad, Vivek Kakkad Tulshidas Kakkad, and Dhruti Kakkad.
- Pre-Issue Promoter Holding: 99.99%
- Post-Issue Promoter Holding: 70.12%
**Key IPO Intermediaries:**
- Book Running Lead Manager: Interactive Financial Services Ltd.
- Registrar to the Issue: MUFG Intime India Pvt.Ltd.
- Market Makers: Svcm Securities Pvt.Ltd. and B.N.Rathi Securities Ltd.
**Company Contact Information:**
Shreeji Global FMCG Ltd.
The Spire, Office No. 1205, 150 Feet Ring Road, Near Ayodhya Circle, Rajkot, Gujarat, 360006
Phone: +91 96242 26111
Email: cs@shreejifmcg.com
**Strategic Outlook: A SWOT Analysis**
Analyzing a company's Strengths, Weaknesses, Opportunities, and Threats provides a holistic view of its market position and future potential.
**Strengths:**
- Strong Brand Presence: Established brand "SHETHJI" in the market.
- Diverse Product Portfolio: Wide range of food products including spices, grains, and flours.
- Strategic Location: Manufacturing facilities in key agro-industrial hubs (Rajkot and Morbi).
- Robust Growth: Significant increase in revenue and profit after tax in recent years.
- Experienced Management: Guided by a team of seasoned promoters.
**Weaknesses:**
- Commodity Price Volatility: Dependence on agro-commodities makes it susceptible to price fluctuations and supply chain risks.
- Intense Competition: Operates in a highly competitive FMCG sector with numerous organized and unorganized players.
- SME Listing Liquidity: SME platform might offer lower trading liquidity compared to mainboard exchanges.
**Opportunities:**
- Expanding Market: Growing demand for quality Indian spices and food products globally.
- Organized Retail Growth: Increasing penetration of organized retail and e-commerce in India.
- Capacity Expansion: Utilizing IPO funds for expanding manufacturing capabilities and cold storage.
- Sustainable Practices: Investment in solar power for operational cost efficiency and environmental responsibility.
**Threats:**
- Regulatory Changes: Potential impact from evolving government policies on agriculture, food processing, and trade.
- Economic Downturns: Reduced consumer spending during economic slowdowns could affect sales.
- Brand Loyalty Challenges: Maintaining and growing brand loyalty in a highly competitive sector.
**Making an Informed Decision**
The Shreeji Global FMCG IPO presents an opportunity to invest in a growing player within the essential FMCG sector, driven by a diversified product range and strategic operational advantages. The company's recent financial performance indicates a positive trajectory, and the planned utilization of IPO proceeds aims to further strengthen its infrastructure and market presence. As with any investment, it's essential for potential investors to thoroughly evaluate all aspects, including market conditions, the company's financials, and their personal investment goals, before making a decision. Engaging with market research and financial advisors can provide further clarity.