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The eagerly awaited Initial Public Offering (IPO) of Shivashrit Foods Limited is set to close for bidding on Tuesday, August 26, 2025. Since its opening on August 22, the IPO has attracted significant investor interest, signaling promising prospects for listing gains. Shivashrit Foods, a leading manufacturer, supplier, and exporter of potato flakes, aims to raise ₹70.03 crore through a fresh issue of equity shares priced in the band of ₹135 to ₹142 per share. This IPO is poised for listing on the NSE Emerge platform and is attracting both retail and institutional investors alike.
Key IPO Highlights and Subscription Status
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IPO Price Band and Size: Shivashrit Foods has fixed its price band between ₹135 and ₹142 per share with a face value of ₹10. The company is issuing a total of 49.32 lakh equity shares, aiming to raise ₹70.03 crore at the upper end of the price band.
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Subscription Progress: By the second day of subscription, the IPO was oversubscribed by approximately 1.15 times, reflecting strong investor demand. Non-Institutional Investors (NII) have shown particular enthusiasm with a 2.63x subscription, while Retail Individual Investors (RII) subscribed at 1.16x. However, the Qualified Institutional Buyer (QIB) portion remained unsubscribed as of the latest update on August 25, 2025.
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Lot Size and Investor Eligibility: The minimum application lot size is 1,000 shares, translating to an investment of around ₹1.35 lakh to ₹1.42 lakh per lot, depending on the bid price within the band. Retail investors can apply for multiple lots, making this an accessible offering for individual investors seeking exposure to the specialty food manufacturing sector.
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Grey Market Premium (GMP): The IPO's GMP stands at ₹5 as of August 25, indicating that the issue price is trading at a ₹5 premium in the grey market. This suggests an anticipated listing price near ₹147, translating into potential listing gains of approximately 3.5% for investors who subscribe at the upper price band.
Company Overview and Business Model
Shivashrit Foods Limited, established in August 2017, specializes in manufacturing, supplying, and exporting potato flakes marketed under its brands "Shivashrit," "Shreeaahar," and "Flaker’s." The company caters to various states across India, including Madhya Pradesh, Maharashtra, Punjab, Gujarat, Haryana, Delhi, Rajasthan, Uttar Pradesh, West Bengal, Uttarakhand, and Bihar. Besides a strong domestic presence, it exports to international markets such as the USA, Brazil, Dubai, Malaysia, Mexico, Turkey, and several others, enhancing its growth potential through global outreach.
Financial Performance Highlights
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Revenue Growth: Shivashrit Foods has shown robust revenue growth, recording ₹105.85 crore in fiscal 2025 versus ₹77.55 crore in fiscal 2024, indicating a significant increase driven by expanding operations and scaling production capacity.
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Profitability: The company sustained consistent profitability with a net profit rising marginally to ₹12.06 crore in 2025 from ₹11.61 crore in 2024, demonstrating steady operating efficiency despite growth.
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IPO Utilization: The net proceeds from the IPO will be used primarily for capital expenditure towards expanding production capacity, including constructing a new building, installing state-of-the-art potato flakes processing machinery, and upgrading utilities like boilers, effluent treatment plants, power generators, and solar panels. Funds will also support working capital requirements aligned with this expansion and other general corporate purposes.
IPO Timeline and Important Dates
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Issue Open Date: August 22, 2025
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Issue Close Date: August 26, 2025 (Tuesday, final day)
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Allotment Date: August 28, 2025
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Refund Initiation: August 29, 2025
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Listing Date: September 1, 2025, on NSE Emerge platform
Investor Considerations and Market Outlook
The Shivashrit Foods IPO presents an opportunity for investors to participate in a niche segment of food processing focused on potato flakes, a key ingredient in several food products. The company's export footprint and diversified domestic market presence provide a stable foundation for future growth. The strong subscription ratios among retail and non-institutional investors combined with a positive GMP indicate market confidence in the company’s fundamentals and growth strategy.
However, investors should consider the absence of qualified institutional investor subscription so far and conduct thorough due diligence including understanding the business risks, competitive landscape, and potential market volatility before investing. The IPO’s pricing appears reasonable in light of the company’s recent financial performance and expansion plans.
In conclusion, Shivashrit Foods’ IPO closing tomorrow marks an important milestone for the company’s expansion journey and offers a potentially rewarding investment avenue, particularly suited for investors with an interest in the food processing sector's growth stories.
Source: IPOWatch.in, Univest.in, The Wire, SMC Global Securities, August 25, 2025.
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