Shanti Inorganics Ltd. IPO

Shanti Inorganics Limited is engaged in the manufacturing and supply of sulphur-based inorganic chemicals. The company was originally incorporated as Shanti Inorgo Chem (Guj) Private Limited in Ahmedabad and subsequently changed its name to Shanti Inorganics Limited after conversion into a public limited company. The company was established in 1998 by Mr. Manoj J. Patel and has developed manufacturing capabilities in sulphur-based inorganic chemicals.

The company's product portfolio includes sodium metabisulphite, sodium bisulphite powder and solution, sodium sulphite anhydrous and ammonium bisulphite solution. These chemicals are used across several industries, including food and beverages, chemical manufacturing, oil and gas, water treatment, leather processing, textiles, pulp and paper, pharmaceuticals, mining and other industrial applications.

Shanti Inorganics operates manufacturing facilities in Ahmedabad, Gujarat. Its existing facilities include the Vatva manufacturing unit and the Bavla facility, with Phase I of the Bavla facility having commenced commercial operations. The company had increased the installed capacity of its Vatva unit from 16,200 metric tonnes per annum to 18,800 MTPA.

The company has positioned itself as a manufacturer focused on sulphur-based inorganic chemistry. Its manufacturing infrastructure includes automated production facilities and quality-control systems intended to support consistent production and supply to domestic and international customers. The company's official website states that its facilities cover approximately 28,000 square metres and that the company exports more than 60% of its production to over 15 countries.

The company's products serve multiple end-use industries. Sodium metabisulphite is used in food and beverage applications, water treatment and mining, while sodium sulphite is used in food and beverage, photographic and textile applications. Sodium bisulphite is used in food and beverages, leather processing and chemical manufacturing, while ammonium bisulphite has applications in oil and gas, water treatment and pulp and paper.

Shanti Inorganics sells its products in both domestic and international markets. Its international customer base spans countries including the United Arab Emirates, Malaysia, Qatar, Nigeria, Russia, Colombia, Turkey, Puerto Rico, Iraq, Vietnam, Azerbaijan, Egypt, Ghana and the Philippines.

The company has established relationships with customers across multiple industries, reducing its dependence on a single end-use industry. However, the company remains exposed to changes in demand from industries such as food and beverages, oil drilling and chemicals.

The company also depends on the availability of raw materials for manufacturing. Supplier concentration is an important factor because the company purchases significant quantities of raw materials from a limited number of suppliers. The offer-related disclosures indicate that purchases from the top five suppliers represented substantial portions of purchases in the periods covered.

Shanti Inorganics' proposed expansion is an important part of the IPO. The company plans to establish a new manufacturing facility at Bavla, Ahmedabad, Gujarat. The proposed facility is intended to manufacture sodium metabisulphite, sodium bisulphite powder and ammonium bisulphite.

The company proposes to use approximately ₹43.00 Cr of the IPO proceeds towards part funding the capital expenditure for this new manufacturing facility. The remaining proceeds are intended for general corporate purposes.

The proposed expansion is expected to increase the company's manufacturing capabilities and support future production requirements. The success of this expansion, however, will depend on timely project execution, availability of resources, demand for the additional capacity and the company's ability to operate the new facility efficiently.

Shanti Inorganics has demonstrated growth in its financial performance. Total income increased from ₹45.06 Cr in FY2024 to ₹58.46 Cr in FY2025 and ₹72.93 Cr in FY2026. Profit After Tax increased from ₹5.12 Cr in FY2024 to ₹7.99 Cr in FY2025 and ₹10.22 Cr in FY2026.

EBITDA increased from ₹8.72 Cr in FY2024 to ₹12.06 Cr in FY2025 and ₹15.40 Cr in FY2026. This indicates improvement in operating profitability alongside the company's revenue growth.

Net worth increased from ₹17.60 Cr in FY2024 to ₹25.60 Cr in FY2025 and ₹48.24 Cr in FY2026. Total assets increased from ₹52.69 Cr in FY2024 to ₹66.04 Cr in FY2025 and ₹97.04 Cr in FY2026.

For the period ended 31 May 2026, the company reported revenue of ₹16.10 Cr, EBITDA of ₹4.02 Cr, PAT of ₹2.50 Cr, net worth of ₹50.74 Cr and total assets of ₹110.73 Cr.

The company has also developed export capabilities, with its official website stating that more than 60% of its production is exported to more than 15 countries. International operations provide geographic diversification but also expose the company to currency movements, international regulations, logistics costs and overseas market conditions.

Shanti Inorganics operates in a specialised chemical manufacturing segment. The company states that it has one of the largest domestic production capacities for bisulphites, with installed capacity of 18,800 MTPA at the Vatva unit.

The company's quality systems and certifications are another component of its business proposition. It maintains a quality-control laboratory and manufactures products intended for different purity requirements and industrial applications.

The company's business also benefits from serving multiple end-use industries. Demand for its products can come from food processing, water treatment, mining, oil and gas, pharmaceuticals, textiles, leather, pulp and paper and other industrial activities.

The IPO is entirely a Fresh Issue, meaning the funds raised from the issue are intended to go to the company rather than existing shareholders through an Offer for Sale. The total issue consists of 56,91,200 equity shares and is priced at ₹79 to ₹83 per share.

At the upper price band of ₹83, the total issue size is ₹47.24 Cr. After excluding the Market Maker reservation portion of 2,84,800 shares, the Net Issue comprises 54,06,400 shares aggregating up to approximately ₹44.87 Cr at the upper price band.

The company's promoters include Manojkumar Jayantilal Patel, Avnish Manojkumar Patel and Suhani Avnishkumar Patel.

Shanti Inorganics operates in the specialised sulphur-based inorganic chemicals segment and has an established manufacturing presence in Gujarat. Its product portfolio covers sodium metabisulphite, sodium bisulphite, sodium sulphite and ammonium bisulphite, giving it exposure to several industrial applications.

The company has both domestic and international customers. Its export presence provides geographic diversification, while its customer base across food and beverage, water treatment, oil and gas, mining, pharmaceuticals, textiles and other industries provides exposure to multiple end markets.

Financially, the company has shown consistent growth. Total income increased from ₹45.06 Cr in FY2024 to ₹58.46 Cr in FY2025 and ₹72.93 Cr in FY2026. PAT increased from ₹5.12 Cr to ₹7.99 Cr and ₹10.22 Cr over the same period.

EBITDA increased from ₹8.72 Cr in FY2024 to ₹12.06 Cr in FY2025 and ₹15.40 Cr in FY2026. The increase in EBITDA along with revenue growth indicates an improvement in the scale and operating profitability of the business.

The proposed use of IPO proceeds is focused primarily on capacity expansion. Approximately ₹43 Cr is proposed to be used for the new Bavla manufacturing facility. This makes the IPO a growth-oriented issue, with the majority of the funds intended for expansion rather than an Offer for Sale.

The valuation at the upper price band is based on a pre-issue EPS of ₹8.84 and a post-issue EPS of ₹8.70, giving a pre-issue P/E of 9.39x and post-issue P/E of 9.54x.

The company has reported a FY2026 ROE/RoNW of 27.68%, ROCE of 23.40%, EBITDA margin of 21.62%, PAT margin of 14.01% and debt-to-equity ratio of 0.64. These figures indicate a profitable operating business, although investors should assess them alongside the company's capital requirements and expansion plans.

The company does face risks. Raw-material availability and pricing are important because chemical manufacturing depends on consistent access to required inputs. Supplier concentration can increase the impact of supply disruptions or changes in procurement costs.

The proposed new manufacturing facility also introduces execution risk. The company will need to complete construction and installation, achieve the planned production capacity and generate sufficient demand for the additional output.

Export exposure provides diversification but also introduces foreign-exchange and international-market risks. Changes in overseas demand, trade regulations, shipping costs or geopolitical conditions could affect international sales.

Overall, Shanti Inorganics presents an established chemical manufacturing business with diversified applications, export exposure, improving financial performance and a planned manufacturing expansion. The IPO's valuation appears moderate based on the reported P/E ratios, while the primary IPO proceeds are directed toward capacity expansion. However, investors should consider raw-material dependence, supplier concentration, debt, project execution, export risks and the competitive nature of the chemical industry before making an investment decision.

Listing Performance

Shanti Inorganics IPO has not yet listed as of 2 September 2026. The shares are scheduled to list on NSE Emerge on 7 September 2026. Therefore, no actual listing price or listing gain/loss should be reported at this stage.

Shanti Inorganics IPO applications can be made through the applicable ASBA and UPI mechanisms during the IPO bidding period. The minimum individual application is 3,200 shares, equivalent to 2 lots, requiring ₹2,65,600 at the upper price band of ₹83.

Through UPI

1. Log in to your stockbroker app or website.
2. Go to the IPO section.
3. Select Shanti Inorganics IPO.
4. Enter the required number of lots.
5. Enter your valid UPI ID.
6. Submit the IPO application.
7. Approve the UPI mandate received in your UPI application.
8. Confirm the mandate using your UPI PIN.
9. The application amount remains blocked in your bank account during the allotment process.
10. If shares are allotted, the applicable amount is debited; otherwise, the blocked amount is released according to the IPO process.