Shri Ahimsa Naturals Limited, manufacturer of natural caffeine products, is gearing up for its market debut with an initial public offering (IPO) valued at ₹50.02 crores. This offering comprises a fresh issue of 19.99 lakh shares, with the subscription window open from March 25, 2025, to March 27, 2025. Investors can track the company's journey as it prepares for its listing on the NSE SME platform, scheduled for Wednesday, April 2, 2025.
The IPO features equity shares with a face value of ₹10/5/2, offered within a price band of ₹113 to ₹119 per share, with a lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,35,600 for one lot, while High Net-worth Individuals (HNI) can subscribe with a minimum investment of ₹2,85,600 (two lots). The company has outlined a streamlined post-subscription timeline, with share allotment notifications expected by March 28, 2025, leading to its NSE SME listing on April 2, 2025. As Shri Ahimsa Naturals Limited enters the public market, it presents an emerging opportunity within India’s agro-food products sector.
Shri Ahimsa Naturals Limited IPO is a fundraise worth ₹73.81 crores comprising purely of a fresh issue with 3,12,000 shares reserved for the market maker Choice Equity Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from March 25, 2025, to March 27, 2025, providing an opportunity for investors looking to gain a stake in the agro-food products sector.
| Shri Ahimsa Naturals IPO date | March 25, 2025 - March 27, 2025 |
| Price band | ₹113 to ₹119 per share |
| Face value | ₹10 per share |
| Lot size | 1,200 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 42,03,600 shares amounting to ₹50.0 crores |
| Total issue size | 19,99,200 shares amounting to ₹23.79 crores |
| Listing at | NSE SME |
| Market maker portion | 3,12,000 shares - Choice Equity Broking Pvt Ltd |
| Shareholding post-issue | 2,33,30,100 shares |
| Shareholding pre-issue | 1,91,26,500 shares |
The Shri Ahimsa Naturals Limited IPO opens for subscription on March 25, 2025, and closes on March 27, 2025, with allotment scheduled for March 28, 2025.
| IPO open date | March 25, 2025 (Tuesday) |
| IPO close date | March 27, 2025 (Thursday) |
| Basis of allotment | March 28, 2025 (Friday) |
| Initiation of refunds | April 1, 2025 (Tuesday) |
| Credit of shares to Demat account | April 1, 2025 (Tuesday) |
| Listing date on BSE / NSE SME | April 2, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on March 27, 2025 (Thursday) |
Incorporated in 1990, Shri Ahimsa Naturals Limited specializes in the extraction and manufacturing of Caffeine Anhydrous, Green Coffee Bean Extracts, and Crude Caffeine, while also trading various herbal extracts. Its products cater to multiple industries, including food & beverages, nutraceuticals, cosmetics, and pharmaceuticals, owing to their recognized health benefits. The company's product portfolio includes natural caffeine, derived from plant seeds like coffee and tea, which is widely used in energy drinks, soft drinks, cosmetics, and pharmaceuticals. Additionally, it offers Green Coffee Bean Extract, sourced from unroasted green coffee seeds, valued for its high chlorogenic acid content, known for its antioxidant properties and potential weight management benefits.
Shri Ahimsa Naturals Limited exports its products to global markets, including the USA, Germany, South Korea, the UK, and Thailand. The company operates a manufacturing facility in Jaipur, Rajasthan, adhering to stringent quality standards, including ISO 9001:2015, ISO 22000:2018, ISO 45001:2018, ISO 14001:2015, HACCP, and GMP guidelines. As of March 2025, the company employed approximately 80 individuals, contributing to its operations and growth.
Shri Ahimsa Naturals Limited plans to utilize the net proceeds from its IPO primarily for investing in its wholly-owned subsidiary, Shri Ahimsa Healthcare Private Limited (SAHPL), to establish a manufacturing unit in Sawarda, Jaipur, Rajasthan, with an allocation of ₹350 million. The remaining funds will be used for general corporate purposes.
As of July 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 22.25%, Return on Capital Employed (ROCE) at 25.69% and a Debt-to-Equity ratio of 0.07. The Return on Net-Worth (RoNW) stands at 22.25% and the Price to Book Value was 2.60. The company’s market capitalisation is ₹277.63 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 41.37 | 78.70 | 106.14 | 58.94 |
| Assets | 111.39 | 103.15 | 74.13 | 40.34 |
| Net Worth | 99.67 | 83.89 | 65.22 | 27.02 |
| Profit After Tax | 9.74 | 18.67 | 38.21 | 11.02 |
| Reserves & Surplus | 80.54 | 65.57 | 59.99 | 21.78 |
| Total Borrowing | 4.85 | 13.83 | 3.43 | 6.36 |
Amount in ₹ crores
The pre-IPO EPS is at ₹9.76 while the post-IPO EPS will be ₹8.35. Similarly, the pre-IPO Price to Earnings ratio is 12.19 and will become 14.25 post-IPO.
Shri Ahimsa Naturals is backed by an experienced team of promoters and a strong management team, providing strategic leadership and industry expertise. The company operates a manufacturing facility that integrates technology-driven processes with robust R&D capabilities, ensuring innovation and efficiency in production. This enables the company to maintain high-quality standards and enhance its reputation in the industry.
In addition to operational excellence, the company has established long-term relationships with its clients, fostering trust and business continuity. Strong partnerships with Crude Caffeine suppliers further support a stable supply chain, ensuring consistency in raw material procurement and strengthening the company's overall market position.
The company's expansion plans rely on investment in its wholly owned subsidiary, Shri Ahimsa Healthcare Private Limited, to set up a new manufacturing unit. However, this project faces risks related to implementation delays, cost overruns, and dependence on government approvals and licenses. Any setbacks in execution or regulatory clearances could negatively impact business operations and financial stability. Additionally, challenges in procurement, vendor reliability, and infrastructure development may lead to time and cost overruns. The company's auditors have also highlighted certain qualifications in their financial reports over multiple years, raising concerns about compliance and record-keeping.
Shri Ahimsa Naturals' revenue generation is concentrated among a limited customer base, making it vulnerable to client-specific risks. The company also depends on third-party suppliers for raw materials, particularly Crude Caffeine, without long-term agreements, exposing it to price fluctuations and potential supply disruptions. Furthermore, some immediate relatives of the promoters, classified as part of the Promoter Group under SEBI regulations, have not provided necessary consents. Additionally, a past legal investigation involving an independent director may pose reputational risks, further impacting investor confidence and business operations.
Investing early in the Shri Ahimsa Naturals Limited’s IPO offers an opportunity to be part of the company’s growth in the natural caffeine and herbal extracts industry. However, investors should carefully evaluate factors such as the company’s financial health, operational performance, industry trends, and expansion strategy. It is essential to align the investment with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional advice can help make a well-informed investment decision.
What is the Shri Ahimsa Naturals Limited IPO?
The Shri Ahimsa Naturals Limited IPO is an NSE SME offering consisting of 42.04 lakh shares with a face value of ₹10, aiming to raise ₹73.81 crore. The price band has been set between ₹113 to ₹119 per share, with a minimum order quantity of 1,200 shares. This IPO will be open for subscription from March 25, 2025, to March 27, 2025. Srujan Alpha Capital Advisors Llp is the book-running lead manager, Cameo Corporate Services Limited is the registrar while Choice Equity Broking Private Limited is the market maker.
When will the Shri Ahimsa Naturals IPO open?
The Shri Ahimsa Naturals Limited IPO will open for subscription on March 25, 2025, and will close onMarch 27, 2025.
When is the Shri Ahimsa Naturals IPO listing date?
The tentative listing date for the Shri Ahimsa Naturals Limited IPO is Wednesday, April 2, 2025.
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