Shubhshree Biofuels Energy Limited is coming up with an IPO with a fresh issue of 13,92,000 shares worth INR 16.56 crores. The company aims to fund capital expenditure, meet working capital needs, and address general corporate purposes.
Shubhshree Biofuels Energy IPO – Important Dates
| Shubhshree Biofuels Energy Limited IPO Date | September 9, 2024 to September 11, 2024 |
| Shubhshree Biofuels Energy Limited IPO Listing Date | September 16, 2024 |
| Shubhshree Biofuels Energy Limited IPO Price | INR 113-119 per share |
| Shubhshree Biofuels Energy Limited IPO Lot Size | 1200 Shares |
| Shubhshree Biofuels Energy Limited IPO Total Issue Size | INR 16.56 crores |
| Shubhshree Biofuels Energy Limited IPO Basis of Allotment | September 12, 2024 |
| Shubhshree Biofuels Energy Limited IPO Initiation of Refunds | September 13, 2024 |
| Shubhshree Biofuels Energy Limited IPO Credit of Shares to Demat | September 13, 2024 |
| Shubhshree Biofuels Energy Limited IPO Issue Type | Book Built Issue IPO |
| Shubhshree Biofuels Energy Limited IPO Listing At | NSE SME |
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Shubhshree Biofuels Energy Limited IPO – Company Profile
Shubhshree Biofuels Energy Limited manufactures and supplies biomass fuels, including pellets and briquettes, as eco-friendly alternatives to fossil fuels for industrial heating, cooking, and electricity generation. It serves industries such as recycling, textiles, pharmaceuticals, and metals.
Incorporated in 2013, the company transitioned from fly ash bricks to biomass fuel production in 2021. With growing demand, biomass sales surged from 9,700 tonnes in 2022 to 121,800 tonnes in 2024, driving significant revenue growth.
Most sales come from Northern India, with Haryana, Uttar Pradesh, Rajasthan, and NCR key regions. The top five customers contribute a significant portion of the company’s revenue from operations.
Shubhshree Biofuels Energy Ltd IPO Fundamental Analysis
Shubhshree Biofuels Energy Limited’s financial analysis reveals a mixed performance. Revenue shows strong growth, with improved profitability and EPS. Equity has risen, debt reliance has decreased, and RoNW has declined. The inventory turnover ratio indicates efficient management.
- Revenue Trend: The revenue increased from ₹791.82 lakhs in March 2022 to ₹5,861.60 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 9,414.60 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹27.46 lakhs in March 2022 to ₹329.77 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.72 in March 2022 to ₹8.60 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 194.54% to 46.36%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Shubhshree Biofuels Energy IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 791.82 | 5,861.60 | 9,414.60 |
| Equity (₹ in lakhs) | 14.12 | 256.50 | 711.27 |
| Expenses (₹ in lakhs) | 759.91 | 5,647.19 | 9,026.51 |
| Profit and Loss After Tax (₹ in lakhs) | 27.46 | 242.38 | 329.77 |
| Diluted EPS only (₹) | 0.72 | 6.34 | 8.60 |
| Return on Net Worth (%) | 194.54 | 94.50 | 46.36 |
| NAV per Equity Share (₹) | 0.37 | 6.71 | 18.56 |
| Total Assets (in lakhs) | 185.61 | 593.12 | 1,396.84 |
| Total Liabilities (in lakhs) | 171.49 | 336.62 | 685.57 |
| Debt Equity Ratio | 3.46 | 0.36 | 0.09 |
| Current Ratio (in times) | 1.38 | 2.15 | 2.01 |
| Inventory Turnover Ratio | 75.73 | 722.95 | 204.83 |
Shubhshree Biofuels Energy Limited IPO Peer Comparison
No listed companies in India are engaged in a business similar to Shubhshree Biofuels Energy Limited’s. Accordingly, it is impossible to provide an industry comparison for the company.
Shubhshree Biofuels Energy Ltd IPO Objective
The main objective of Shubhshree Biofuels Energy Limited is to fund capital expenditure and meet working capital needs.
- Funding Capital Expenditure towards the installation of additional plant and machinery: The company intends to utilize INR 2.13 crores for purchasing and installing additional plant and machinery, aimed at expanding its manufacturing capacity for biomass pellets and briquettes at its facility in Rajasthan.
- To Meet Working Capital Requirements: The company plans to utilize INR 9 crores from the net proceeds of the issue for working capital, with the balance to be covered by internal accruals and borrowings as needed.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses, initial development costs for new projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies.
Shubhshree Biofuels Energy IPO Risks And Challenges
Shubhshree Biofuels Energy Limited’s risk includes uncertain future profitability due to increased expenses, competition from local players, geographical concentration in Northern India, and the potential impact of fluctuating fossil fuel prices on biomass fuel adoption.
- Profit before tax has improved with the shift to biomass fuels, but predicting future results is challenging. Increased operating expenses and growth investments may impact profitability, requiring significant revenue growth to maintain positive cash flow.
- Biomass fuel is emerging in India, but it faces resistance due to adaptation costs and changes. While it offers environmental benefits over fossil fuels, potential price declines in fossil fuels could impact its competitiveness and adoption.
- Geographical concentration in Northern India exposes the company to regional risks and competition. Expanding to new markets may face challenges from local players and differing conditions. Investors should consider these risks and not rely on past performance for future projections.
Shubhshree Biofuels Energy Ltd IPO – Industry & Market Potential
Biofuels, derived from plant materials, are gaining global attention as petroleum substitutes to address energy and environmental concerns. They include first-generation fuels from edible plant parts and second-generation fuels from non-edible biomass.
Industrialized and developing countries are expanding biofuel industries due to their potential for rural employment, land restoration, high-value product production, export opportunities, and greenhouse gas reduction, which may yield carbon credits.
Starting FY 2024-25, coal-based thermal power plants must blend 5% biomass pellets with coal, increasing to 7% in FY 2025-26. Specific requirements apply based on mill types with differing pellet specifications.
Shubhshree Biofuels Energy Limited IPO – Type of Offer
Shubhshree Biofuels Energy Limited is coming up with an IPO with a fresh issue of 13,92,000 shares worth INR 16.56 crores. The company aims to fund capital expenditure, meet working capital needs, and address general corporate purposes.
Shubhshree Biofuels Energy IPO Offer Size
The offer size of Shubhshree Biofuels Energy Limited is INR 16.56 crores, consisting of a fresh issue of 13,92,000 shares. The company seeks capital expenditure funds, meets working capital needs, and addresses general corporate purposes.
Shubhshree Biofuels Energy Limited IPO Allotment Structure
Shubhshree Biofuels Energy Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 72,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 72,000 shares, are reserved for market makers.
Read more Shubhshree Biofuels Energy Limited IPO Allotment Status
How to apply for Shubhshree Biofuels Energy IPO?
To apply for the Shubhshree Biofuels Energy Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Shubhshree Biofuels Energy Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Shubhshree Biofuels Energy Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more Shubhshree Biofuels Energy Limited IPO Day 1 Subscription
How do you check Shubhshree Biofuels Energy IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Shubhshree Biofuels Energy Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Shubhshree Biofuels Energy Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Shubhshree Biofuels Energy Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Shubhshree Biofuels Energy Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more Shubhshree Biofuels Energy Limited IPO Day 2 Subscription
Shubhshree Biofuels Energy Ltd IPO Offer Registrar
The registrar for the Shubhshree Biofuels Energy Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre,
Mahakali Caves Road, Andheri (East)
Mumbai – 400093, Maharashtra, India.
Telephone: +91 22 6263 8200
Email: [email protected]
Website: www.bigshareonline.com
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Shubhshree Biofuels Energy IPO – FAQs
1. What is the allotment date of the Shubhshree Biofuels Energy IPO?
The allotment date of the Shubhshree Biofuels Energy Limited IPO is September 12, 2024.
2. What is the price band of the Shubhshree Biofuels Energy IPO?
The price band of the issue is INR 113-119 per share.
3. What is the size of the Shubhshree Biofuels Energy IPO?
The offer size of Shubhshree Biofuels Energy Limited is INR 16.56 crores, consisting of a fresh issue of 13,92,000 shares. The company seeks capital expenditure funds, meets working capital needs, and addresses general corporate purposes.
4. What is the listing date of the Shubhshree Biofuels Energy IPO?
The listing date of Shubhshree Biofuels Energy Limited’s IPO is September 16, 2024.
