Shivchem Agro
What they do: Manufactures, deals in, imports, processes and distributes technical pesticides, agrochemicals, insecticides, herbicides, weedicides, rodenticides, fertilizers and related products.
By IPO Milega Research · Published · Updated
The company shows sharp year-on-year growth in the extracted numbers, but the financials are internally inconsistent across sections.
- Listing gain
- +0%
- Listed at ₹62
- Subscribed
- 2.2x
- Total
- Retail odds
- 29%
- 1 in 3.5
GMP is an unofficial grey market indication. GMP updated 11 Oct, 18:05 IST.
- Price band
- ₹59-62
- Lot size
- 4000 shares
- Min. investment
- ₹2,48,000
- Issue size
- Approx 14.01 Crores
- Open28 Sept 2026
- Close30 Sept 2026
- Allotment1 Oct 2026
- Listing6 Oct 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 1x
- NII
- 1x
- Retail
- 3.5x
₹63 (+1.61%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹13 Cr
- Fresh issue
- To selling shareholders
- ₹0 Cr
- No offer for sale
- Funding the working capital requirements of the Company₹6.9 Cr49%
- Repayment/prepayment, in full or part, of certain loans availed by Company₹3.5 Cr25%
- General Corporate Purposes₹1.51 Cr11%
- Issue Expenses₹2.1 Cr15%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials5.0
- Performance6.0
- Flexibility6.0
- Timing6.0
- Risk4.0
GMP implies about 16.13% upside, but cross-module signals warrant a slight haircut: the company has very fast revenue and profit growth, yet margins softened in FY25, operating cash flow has been negative across all years, leverage and working-capital intensity remain elevated, and regulatory/supplier/customer concentration risks are meaningful. The issue still appears reasonably timed for a growing agrochemicals business, so a mid-teens listing gain looks plausible if sentiment holds.
Strengths5
- Expanded licenses from 35 in FY23 to 232 in FY24 and 258 in FY25.
- Built a distribution network of 516 distributors across 5 states with 6 godowns.
- Scaled product mix across insecticides, fungicides, herbicides, plant growth regulators, rodenticides and fertilizers.
- Increased production capacity to 65 lakh litre/kilograms in FY25 from 56 lakh in FY24.
- Maintained profitability every year since operations began, with no audit qualifications reported.
Concerns5
- Operations depend on multiple approvals under the Insecticides Act and Fertilizer Control Order; suspension or non-compliance can halt sales.
- Raw material costs are high and concentrated with a few suppliers, exposing margins to price shocks and supply disruption.
- Customer and distributor concentration can impair revenue if key accounts are lost or channel execution weakens.
- Unsecured borrowings and loan documentation gaps increase refinancing, recall, and liquidity pressure risk.
- Pending trademarks and possible IP disputes may limit brand protection and increase legal costs.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,48,0002 lots, 4000 shares
- Retail Maximum2,48,0002 lots, 4000 shares
- S-HNI Minimum3,72,0003 lots, 6000 shares
- S-HNI Maximum9,92,0008 lots, 16,000 shares
- B-HNI Minimum11,16,0009 lots, 18,000 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 4000 | 2,48,000 |
| Retail Maximum | 2 | 4000 | 2,48,000 |
| S-HNI Minimum | 3 | 6000 | 3,72,000 |
| S-HNI Maximum | 8 | 16,000 | 9,92,000 |
| B-HNI Minimum | 9 | 18,000 | 11,16,000 |
Timing
6.0/10Overall timing is moderately positive. The agrochemicals sector is described as expanding, with demand supported by food security, population growth, and adoption of agricultural inputs. That said, the prospectus does not indicate a strong cyclical or sentiment-driven tailwind, so the case for exceptional market timing is limited and more execution-dependent.
- Time to market
- The issue fits a growth-and-balance-sheet-strengthening phase, which is sensible for an asset-light but working-capital-intensive agrochemical business. The timing looks acceptable, but not distinctly opportunistic, because the disclosed context emphasizes business expansion needs rather than a clear market peak or undervaluation window.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 6.0
- Listing on
- BSE SME
Key milestones
- 28 Sept 2026IPO Opens
- 30 Sept 2026IPO Closes
- 1 Oct 2026Basis of Allotment
- 5 Oct 2026Refunds Initiated
- 5 Oct 2026Credit to Demat Account
- 6 Oct 2026Listing Date
Financials
5.0/10- Revenue
- ₹0 Cr
- -100.0%
- Profit after tax
- ₹0 Cr
- -100.0%
- Net margin
- N/A
- No prior year
- Assets
- ₹0 Cr
- -100.0%
- Return on equity
- -%
- Debt to equity
- 0.86
- Revenue CAGR
- -75.35%
- ROCE
- -%
- Return on net worth
- 45.33%
- NAV per share (₹)
- 44.05
- Price to book
- 2.53
Financial performance trend
Amount ₹ in croresThe company shows sharp year-on-year growth in the extracted numbers, but the financials are internally inconsistent across sections. Using the extracted data, FY2025 revenue is very small relative to profit, while the restated statements show a much larger operating scale. Debt is moderate and the business remains profitable, but leverage and working-capital intensity need monitoring.
Borrowings are present but not excessive relative to equity, with total debt at about 0.86x equity. The IPO appears to be a fresh issue and no debt repayment is stated in the provided extract, so debt is not being directly repaid through issue proceeds.
Fresh issue goes to the company. OFS goes to the selling shareholders.
None; promoters and promoter group will not participate in the public issue.
The issue appears to be for capital raising by the company through a fresh issue. No offer-for-sale or promoter cash-out is indicated in the provided text.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks4
- Market risks4
- Operational risks5
- Regulatory risks4
Moderate-to-high risk due to heavy regulatory dependence, supplier/customer concentration, raw material cost exposure, leverage, IP uncertainty, and retention challenges.
How the company offsets these
Maintain compliance, diversify suppliers/customers, protect IP, strengthen documentation and liquidity, retain key talent, and preserve insurance coverage.
Financial risks4
- High raw material cost share in total expenses.
- Unsecured loans may be recalled at any time, creating liquidity risk.
- Debt and dependence on financing increase refinancing sensitivity.
- Promoter guarantee revocation may require alternate security or repayment.
Market risks4
- Exposure to customer concentration and distributor dependence.
- Competition from established players and new entrants.
- Inflation may compress margins through higher material and wage costs.
- Demand/revenue tied to product mix, price realization, and crop-season dynamics.
Operational risks5
- Regulatory approvals for products and fertilizers are subject to periodic inspection and possible prohibition.
- Quality or technical-spec non-compliance may lead to license revocation and loss of trust.
- Supplier concentration may disrupt production or availability.
- Employee attrition may affect execution and KMP continuity.
- Uninsured losses or delayed insurance settlement may impact operations.
Regulatory risks4
- Licenses/permits under insecticides and fertilizer laws can be suspended, denied, or revoked.
- Trademark applications pending; weak IP protection may limit remedies.
- Third-party objections or infringement claims may be time-consuming and costly.
- Loan documentation gaps and compliance issues could affect lender confidence.
Performance
6.0/10Shivchem Agro has delivered very rapid top-line and profit growth from a very small base since incorporation in 2021, supported by sharp expansion in licenses, distributors and product breadth. However, growth has come with weak operating cash generation, rising leverage, declining margins in FY25 and meaningful customer/supplier concentration, which temper the overall quality of performance.
- Historical growth
- Revenue from operations rose from ₹228.41 lakh in FY23 to ₹1,094.25 lakh in FY24 and ₹2,746.50 lakh in FY25; PAT rose from ₹12.72 lakh to ₹129.36 lakh and ₹251.18 lakh respectively. EBITDA increased from ₹18.21 lakh to ₹193.08 lakh and ₹425.71 lakh, while EBITDA margin eased from 17.97% to 17.64% and 15.50%., Very high growth: revenue CAGR of about 262% from FY23 to FY25; PAT CAGR of about 296% over the same period.
- Market comparison
- Against typical listed agrochemical peers, the company appears much smaller in scale and geography, but faster-growing from a low base. Its business is less diversified and more concentrated, with top 10 customers contributing 24.00% of FY25 revenue and the top supplier contributing 44.16% of purchases, indicating weaker bargaining power than stronger peers.
- Future potential
- Potential remains strong if the company continues adding licenses, distributors, products and manufacturing capacity, and converts revenue growth into cash generation. Expansion into new states and deeper product penetration can support further growth.
- Operational consistency
- The company shows consistent scale-up in revenue, profit, distributors and licenses over three years, but execution is not yet fully mature: working capital absorption is high, inventories and receivables have grown sharply, leverage has increased, and FY25 margins softened despite strong sales growth.
- Experience
- Promoters Sachin Agarwal and Rohit Agarwal incorporated the company in 2021 and have executed rapid business expansion in a short period.
- Track record
- Track record is positive on growth and execution, but limited by the company’s very short operating history, negative operating cash flows and reliance on debt and related-party funding.
Key achievements
- 01Expanded licenses from 35 in FY23 to 232 in FY24 and 258 in FY25.
- 02Built a distribution network of 516 distributors across 5 states with 6 godowns.
- 03Scaled product mix across insecticides, fungicides, herbicides, plant growth regulators, rodenticides and fertilizers.
- 04Increased production capacity to 65 lakh litre/kilograms in FY25 from 56 lakh in FY24.
- 05Maintained profitability every year since operations began, with no audit qualifications reported.
Flexibility
6.0/10Market reach has expanded from 2 to 5 states, distributors rose to 516, and licenses increased to 258, indicating good ability to enter new markets and broaden product coverage. Demand-led inventory and credit terms suggest it can adapt commercially, though current presence remains limited to five states.
Revenue, EBITDA, and PAT have grown sharply, and debt-equity improved to 0.86 from 4.73. However, operating cash flow remains negative in all three years, current ratio is only 1.34, and the business depends heavily on working capital and supplier-linked inputs, indicating moderate financial fragility.
Operational agility is supported by automated filling/packaging, multiple formulation types, and capacity additions, but utilisation remains low across major products (e.g., insecticides 19.03%, herbicides 27.32% in FY25). A single plant and supplier dependence reduce overall agility.
The company shows moderate flexibility through a broad agrochemical portfolio, rapid expansion in licensed products, multi-state distribution, and the ability to undertake job work/contract manufacturing. However, flexibility is constrained by working-capital intensity, reliance on a single manufacturing facility, and high supplier concentration.
- Product diversification
- Strong diversification across insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers. Revenue is still concentrated in insecticides and herbicides, but the licensed product base is wide and expanding.
- Future adaptability
- Reasonable to good, because the company has room to scale capacity utilisation, deepen distribution, and use IPO funds for working capital and debt repayment. Future adaptability would improve if it reduces supplier concentration, converts negative operating cash flow into positive cash generation, and broadens beyond the current limited state footprint.
Latest on Shivchem Agro IPO
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