- Our view
- May Subscribe
- Market cap then
- ~INR 284.50 Cr.
- Price band
- INR 120 to 125 per share
Shreeji Global FMCG Ltd. manufactures and processes spices, seeds, grains, pulses and flour in Gujarat. Minerva Capital Research Solutions recommends May Subscribe to its IPO, citing planned manufacturing expansion, location advantages and promoter experience, while highlighting working-capital intensity and negative operating cash flow as concerns.
About Shreeji Global FMCG
Incorporated in 2018 in Ahemdabad, Shreeji Global FMCG manufactures and processes ground and whole spices, seeds, grains, pulses and atta (flour). It markets products under its SHETHJI brand and through white-label arrangements, with facilities in Rajkot and Morbi, Gujarat. Its customers range from individual traders and small businesses to corporate entities, and packaging is offered from 20 grams to 50 kgs. The company notes that its facilities and branch offices near APMC markets and local mandis provide direct market access and sourcing advantages.
Shreeji Global FMCG IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 120 to 125 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 284.50 |
| Exchange | NSE SME |
| Min. Lot Size (Retail | HNI) | 2,000 | 3,000 |
| Issue Opens on | 04-Nov’25 |
| Issue Closes on | 07-Nov’25 |
| Listing Date | 12-Nov’25 |
| No. of shares pre-issue (#) | 1,59,60,000 |
| Fresh Issue of Shares (#) | 68,00,000 |
| Offer for Sale (#) | - |
| No. of shares post-issue (#) | 2,27,60,000 |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 85.00 |
| Funds Mobilized: Offer for Sale (INR Cr.) | 0.0 |
| Registrar | MUFG Intime |
| Book Running Lead Managers | Interactive Financial |
Use of Issue Proceeds
- Factory premises: INR 5.67 Cr. is allocated for capex for factory premises.
- Plant, machineries and cold storage: INR 29.00 Cr. is allocated for capex for plant, machineries and cold storage.
- Captive solar power: INR 4.25 Cr. is allocated for capex for solar power (captive).
- Working capital: INR 33.54 Cr. is allocated for working capital.
- General corporate purposes: The amount is shown as [●].
Strengths
- Expansion of manufacturing capacity: The company plans to add 37,500 MTPA of flour capacity and 22,500 MTPA of blended-spices capacity. The report also cites a proposed 5,000 MTPA cold-storage capacity, intended to reduce rental costs and improve the supply chain; a 1,000 KW captive solar power plant is also proposed for energy cost savings.
- Existing capacity is highly utilised: As of 31-Aug’25, whole seeds, ground spices and flour capacity was utilised at 70%, 93% and 92%, respectively. The report estimates the new capacity will increase blended total capacity by ~37%.
- Location supports sourcing and operations: Facilities in the agricultural regions of Gondal and Rajkot are within 30 kms of each other. Manufacturing facilities are located 250 kms from Mundra Port.
- Promoter experience and product range: Promoters Mr. Jitendra Kakkad and Mr. Vivek Kakkad have nearly 2 decades of experience in agri sourcing, supply and processing. The company serves varied customers with a broad product portfolio.
Business and Revenue Mix
The company supplies all products through B2B and currently has no B2C sales. Whole seeds accounted for 85.5% of revenue in 5M-FY26, while ground-spices powder contributed 11.9% and atta-flours 2.4%. Exports represented 10.9% of 5M-FY26 revenue, compared with 8.9% in FY25. The report says capacity expansion is intended to support value-added products such as blended spices and millet-based multigrain flours, with a stated intention to serve D2C and international export markets.
| Revenue Segments | FY23 | FY24 | FY25 | 5M-FY26 |
|---|---|---|---|---|
| Whole Seed (Spices, Pulses, Grains & Cereals, Oil Seeds and others) | 99.49% | 98.8% | 94.9% | 85.5% |
| Ground Spices – Powder | - | 1.0% | 2.8% | 11.9% |
| Atta – Flours | - | 0.1% | 2.1% | 2.4% |
| Others – Grains & Products | 0.51% | 0.1% | 0.2% | 0.1% |
| Total | 467 | 588 | 649 | 250 |
Total values are as presented in the report.
In 5M-FY26, domestic revenue was 89.1% and exports were 10.9%. Gujarat contributed 74.5% of revenue; export markets included UAE (50.9%), Saudi Arabia (12.6%), Malaysia (10.5%) and Oman (6.5%), as reported.
Shreeji Global FMCG Key Financials
| Particulars (INR Cr.) | FY23 | FY24 | FY25 | 5M-FY26 |
|---|---|---|---|---|
| Revenue (excl. other inc.) | 467 | 588 | 649 | 250 |
| Growth Rate Y-o-Y % | 25.9% | 10.3% | ||
| EBITDA (excl. other inc.) | 2.6 | 10.1 | 18.4 | 13.1 |
| EBITDA % (excl. other inc.) | 0.6% | 1.7% | 2.8% | 5.2% |
| PAT | 2.1 | 5.5 | 12.2 | 9.2 |
| PAT % | 0.4% | 0.9% | 1.9% | 3.7% |
| Debt (Short+Long) | 19.0 | 25.5 | 30.4 | 29.6 |
| Equity | 8.9 | 17.4 | 29.6 | 38.8 |
| Debt/Equity | 2.12x | 1.46x | 1.03x | 0.76x |
| ROE % | 28.66% | 41.54% | 51.74% | 26.92% |
| ROCE % | 11.93% | 23.82% | 32.07% | 19.59% |
| CFO / EBITDA % | (222%) | (55.7%) | (0.9%) | 13.0% |
Revenue and profitability increased from FY23 to FY25. EBITDA margin was 5.2% and PAT margin was 3.7% in 5M-FY26; whether the higher margins continue through the full year is identified as a monitorable.
IPO Valuation and Our View
At the issue price, the company is valued at a P/E ratio of 23.4x based on FY25 PAT and ~13x based on 5M-FY26 annualized PAT. The report weighs manufacturing expansion, location and promoter experience against working-capital-intensive operations and negative cash flow from operations. Minerva Capital Research Solutions recommends May Subscribe to the issue.
- INR 120 to 125 per share
- IPO price band
- ~INR 284.50 Cr.
- Implied market capitalisation
- May Subscribe
- Recommendation
Management
The report identifies promoters Mr. Jitendra Kakkad and Mr. Vivek Kakkad as having nearly 2 decades of experience in agri sourcing, supply and processing. Mr. Jitendra Kakkad is Promoter & MD and has led Strategy and Business Development since 2018; Mr. Vivek Kakkad is Promoter & Whole Time Director and has more than seven years of experience in the trading industry.
Key Risks
- Working-capital intensity and cash flow: The report highlights working-capital-intensive operations and negative cash flow from operations observed in the past.
- B2B margins: The company operates in the B2B segment, which the report associates with lower margins.
- Margin sustainability: Whether the higher margins recorded for 5M-FY26 are sustainable for the full year remains a key monitorable.
- Capex execution: The company’s ability to complete capex and commence production remains a key monitorable.
- Contingent liabilities: The report states that contingent liabilities pertain to GST appeals filed by the company.
Our View
The IPO offers exposure to a company planning to expand its product and production capacity, supported by a Gujarat operating base and experienced promoters. These strengths are balanced by working-capital needs, past negative operating cash flow and execution and margin-sustainability monitorables. The report’s recommendation is May Subscribe.
Standard disclosures
- Research Analyst has served as an officer, director or employee of subject company(ies): No
- We or our associates have received compensation from the subject company(ies) in the past 12 months: No
- We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
- We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
- We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
- We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
- Nature of financial interest in subject company, if any –Nil
- We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
- Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
- We or our Associates or Research Analyst are engaged in market making of subject company – No
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Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
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Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%