Sheel Biotech ₹34.02 Crore IPO Set to Open Tomorrow With Price Band ₹59–₹63

Mumbai, 29 September 2025: Sheel Biotech Limited (NSE Emerge: SHEEL) is preparing to launch its Initial Public Offering (IPO) tomorrow, 30 September 2025, with subscription open until 3 October 2025. The company has set a price band of ₹59–₹63 per share, aggregating to a fresh issue size of ₹34.02 crore.

Sheel Biotech IPO comprises 54 lakh equity shares, and the minimum amount of investment required by an individual investor (retail) is ₹2,52,000.00 (4,000 shares) (based on upper price). The minimum lot size investment for HNI is 3 lots (6,000 shares), amounting to ₹3,78,000. The shares are scheduled to list on 8 October 2025 on NSE Emerge.

Founded in 1991, Sheel Biotech has over three decades of experience in plant tissue culture and organic farming solutions. Its portfolio includes tissue culture plants, organic inputs, greenhouse construction, farmer training, and landscaping services. An in-house R&D lab with 10 million plant capacity supports scalability and innovation, contributing to consistent operational performance.

Sheel Biotech IPO Opens With ₹34 Crore Fresh Issue Amid Robust Operational Scale

Sheel Biotech has fixed its IPO price band at ₹59-₹63 per share, reflecting a total offer size of ₹34 crore. The minimum subscription lot is 2,000 shares, equating to ₹1,26,000 at the upper band. A market maker reservation of 2,72,000 shares is also in place to support orderly trading post-listing. The IPO proceeds are earmarked primarily for working capital (₹15.88 crore), capital expenditure including blueberry cultivation expansion (₹9.12 crore), with the balance for general corporate purposes.

Revenue Growth Accelerates With FY25 Revenue at ₹10,175 Lakh and PAT Exceeding ₹1,063 Lakh

Sheel Biotech has demonstrated steady financial expansion over three years. Revenue from operations increased from ₹8,011.57 lakh in FY23 to ₹10,175.25 lakh in FY25, representing a growth of over 27% y-o-y. Profit After Tax (PAT) more than doubled from ₹507.65 lakh in FY23 to ₹1,063.61 lakh in FY25, driven by enhanced operational efficiency and expansion in government contracts. Net worth rose from ₹6,354.15 lakh in FY23 to ₹8,385.42 lakh in FY25, while borrowings declined to ₹1,736.12 lakh in FY25, reflecting improved leverage and financial stability.

Government Contracts Drive Over 57% of Revenue With Strong Geographic Focus in Bihar & UP

A substantial portion of Sheel Biotech’s revenue comes from state and central government tenders, amounting to ₹5,761.97 lakh in FY25 (~57% of total revenue). Operations are concentrated across multiple states, with Bihar and Uttar Pradesh contributing over 70% of domestic revenue, underscoring a significant regional presence. This concentration has both driven growth and highlighted exposure to policy and bidding cycles.

Working Capital Intensity and Litigation Present Operational Challenges

The company’s operations remain working capital intensive, with FY25 requirements at ₹8,915 lakh, likely to increase with expansion plans. Ongoing civil and tax litigations with an aggregate exposure of ₹148.54 lakh and instances of delayed statutory compliances, including GST and ESIC filings, highlight potential operational risks. Geographic concentration in Bihar and UP further amplifies exposure to regional policy shifts and market dynamics.

Sheel Biotech’s IPO provides insights into the growth trajectory of a company with steady revenue expansion, strong government contract participation, and strategic R&D capabilities. While operational scale and legacy strengthen its market position, attention to working capital management, litigation exposure, and regional concentration remains critical for sustainable operational planning.

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