Shreeji Global FMCG Ltd.

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

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.

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

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.

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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%