Sharp Agricom files DRHP for IPO

Mumbai, 31 July 2025: Delhi-based Sharp Agricom Limited has filed its draft red herring prospectus (DRHP) with SEBI for a ₹[●] crore SME IPO on the BSE SME platform. The upcoming issue will be a 100% fresh equity offering, aimed at bolstering the company’s core operational and financial strength. With the company yet to announce its IPO launch date and price band, investor anticipation is already building across the agro-processing and SME sectors.

Sharp Agricom Plans to Issue 55.87 Lakh Fresh Equity Shares in SME IPO

The IPO comprises a pure fresh issue of 55,87,200 equity shares with a face value of ₹10 each. The entire proceeds will go towards business expansion—there will be no offer for sale component. The issue is being made in accordance with Regulation 229(2) of SEBI (ICDR) Regulations, 2018, specifically for SME listings.

The IPO is structured as follows:

• Issue Size: Up to 55,87,200 equity shares (entirely fresh issue)
• Offer for Sale: Nil
• Listing Exchange: BSE SME
• Face Value: ₹10 per share
• Pre-Issue Equity Shares: 1,54,98,000 shares
• Post-Issue Equity Shares: 2,10,85,200 shares
• Pre-Issue Promoter Holding: 80.14%
• Post-Issue Promoter Holding: [●]%(to be updated after allotment)

IPO Proceeds Earmarked for Machinery, Working Capital and Debt Reduction

Sharp Agricom intends to use the net proceeds from the IPO to strengthen its operations and financial position. The fund utilisation plan includes:

• Investment in Plant & Machinery: To expand manufacturing capacity and improve process efficiency.
• Working Capital Requirements: For procurement of raw materials, trade payables, and inventory management.
• Repayment or Prepayment of Certain Borrowings: To reduce interest burden and improve leverage.
• General Corporate Purposes: Supporting overall business needs and operational readiness post-listing.

Promoter Holding to Dilute Post-IPO; Pre-Issue Stake at 80.14%

Promoters currently hold 80.14% of the company’s equity, which will be diluted post-issue. The final promoter stake post-IPO will be disclosed in the RHP and allotment documents.

Sharp Agricom’s IPO to Follow SME Quota Norms on BSE

The IPO reservation and allocation will follow standard SME guidelines as per SEBI:

• Retail Investors: Not less than 35% of the net offer
• Non-Institutional Investors (NII): Not less than 15%
• Qualified Institutional Buyers (QIBs): Not more than 50%
• Market Maker Portion: Specific quota to ensure post-listing liquidity

Debt Instruments and Pledges

The company has outstanding NCDs worth ₹2,000 lakh, issued to UTI and Monte Carlo, bearing an interest rate of 15% per annum. These are secured against assets, receivables, 75% equity share pledge, and personal guarantees.

Intermediaries

• Book Running Lead Manager (BRLM): Fast Track Finsec Pvt Ltd
• Registrar: Beetal Financial & Computer Services Pvt Ltd
• Auditor: M/s Svaraj & Associates
• Market Maker: [To be updated]

Company Overview: Agro-Commodity Focus with Manufacturing, Trading and Packaging

Sharp Agricom is engaged in processing, trading and packaging of agro-commodities, including mustard oil, wheat flour, rice, pulses, spices and cattle feed. It operates from its manufacturing unit in Delhi and is known for sourcing directly from farmers and supplying to both wholesalers and government agencies.

The company aims to scale its supply chain footprint and boost operational efficiency through the upcoming public issue.

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