Shanti Inorganics IPO
Shanti Inorganics LtdSME
This IPO is now Live.
- Open date
- 31 Aug 2026
- Close date
- 2 Sep 2026
- Min. Investment
- ₹2,65,600
- Lot Size
- -
- Fresh Issue
- ₹47.24 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers1.65x
- Non-Institutional Investors27.86x
- Retail-Individual Investors40.56x
- Total26.78x
Schedule
- Completed: IPO open date31 Aug 2026
- Current step: IPO close date2 Sep 2026
- Upcoming: Allotment date3 Sep 2026
- Upcoming: Funds unblock or debit4 Sep 2026
- Upcoming: Tentative listing date7 Sep 2026
About
Promoter shareholding in Shanti Inorganics Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Manojkumar Jayantilal Patel | 69,61,440 | 60.24% | 69,61,440 | 40.36% |
| Avnish Manojkumar Patel | 16,88,000 | 14.61% | 16,88,000 | 9.79% |
| Suhani Avnishkumar Patel | 5,08,800 | 4.40% | 5,08,800 | 2.95% |
| Sarojben Manojbhai Patel | 5,08,800 | 4.40% | 5,08,800 | 2.95% |
Shanti Inorganics IPO Strengths & Risks
- Geographical diversification through exports to international market.
- Long standing relationship with diversified customers across multiple industries.
- Strategically located production facilities with access to abundant resources of raw materials and longterm relationships with suppliers.
- Certifications and compliance with quality and food safety standards.
- Experienced Promoters and Senior Management with extensive domain knowledge.
- Consistent financial performance.
- Risks Relating to the Business: The company derives a substantial portion of its revenue from the food and beverages, oil drilling and chemical industries. Consequently, any material decline in the performance of the food and beverages, oil drilling and chemical industries, or the company's failure to sustain, grow, or efficiently manage its sales within these industries may materially and adversely affect the company's business operations, financial condition and results of operations.
- Risks Relating to the Business: The Company derives revenue from diversified customers. Its inability to acquire new customers or loss of all or a substantial portion of any of the company's major customers, for any reason and/or continued reduction of the business from them, could have a material adverse impact on the company's business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company does not maintain long-term contractual arrangements with the majority of its customers. As a result, the loss of one or more key customers, or any significant reduction in their demand for the company's products, could materially and adversely affect its business operations, financial condition, results of operations and cash flows.
- Risks Relating to the Business: Certain entities forming part of the company's Group Companies, are in the same line of business as its. There are no non-compete agreements between the Company and such Group Companies. The company cannot assure that the said entity will not expand which may increase its competition, which may adversely affect the company's business operations and financial condition.
- Risks Relating to the Business: The company operates in a competitive industry, and increasing competition may adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: A substantial portion of the company's revenue is derived from exports, exposing it to risks associated with international markets. Any adverse developments in these markets may materially and adversely affect the company's business operations, financial condition and results of operations.
- Risks Relating to the Business: A significant increase in the cost of raw materials, particularly if not matched by a corresponding increase in product pricing or revenue, could materially and adversely affect the company's profit margins and overall financial performance. If the company is unable to pass on these increased costs to its customers, it may result in reduced profitability and negatively impact the company's results of operations and financial condition.
- Risks Relating to the Business: The company has not made any long-term supply arrangement or agreement with its suppliers. In an eventuality where the company's suppliers are unable to deliver it the required materials, at a competitive price, in a time-bound manner it may have a material adverse effect on the company's business operations and profitability.
- Risks Relating to the Business: The company's manufacturing facilities situated in Vatva, Ahmedabad ("Manufacturing Unit - I") and Bavla, Ahmedabad ("Manufacturing Unit - II - Phase I") is critical for its business and any disturbance, slowdown or shutdown of the company's manufacturing facilities, may have an adverse impact on its business, results of operations and financial conditions.
- Risks Relating to the Business: The company's proposed project of capital expenditure relating towards setting up a new facility for manufacturing of sodium meta bisulphite, sodium bisulphite powder and ammonium bisulphite for phase II of Manufacturing Unit - II is subject to the risk of unanticipated delays in implementation and cost overruns.
- Risks Relating to the Business: There have been certain instances of delay with respect to filings of forms and intimations under the Companies Act, 2013 with the RoC, non-compliance of section 203 (3) and 135 of the Companies Act, 2013 in the past. The company cannot assure you that regulatory proceedings or actions will not be initiated against it, and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard in the future which may impact its financial condition and reputation.
- Risks Relating to the Business: The company's inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company's results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company's operations can be adversely affected in case of industrial accidents at its manufacturing facilities. Further, any fire or mishap or accidents of such nature at the Company's facilities could lead to accident claims and damage and loss of property, inventory, raw materials, etc.
- Risks Relating to the Business: The company's success in large part depends upon its KMPs and other employees with technical expertise and if the company is unable to recruit and retain such qualified and skilled employees, its business and the company's ability to operates or grow its business may be adversely affected.
- Risks Relating to the Business: Failures to maintain required quality accreditations and certifications may adversely affect the company's reputation, customer confidence and market credibility, which could, in turn, have a material adverse impact on its business operations and financial performance.
- Risks Relating to the Business: There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on the company's financial condition and cash flows.
- Risks Relating to the Business: The failures to effectively expand the company's operations into international markets may hinder its growth prospects and could materially and adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company's commercial performance is inherently linked to the market success of its customers' products. A decline in consumer demand for such products may result in a corresponding reduction in demand for the company's offerings, which could materially and adversely affect its business operations and financial condition.
- Risks Relating to the Business: The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the Objects of the Issue. Any shortfall in raising/meeting the same could adversely affect its growth plans, business operations and financial condition.
- Risks Relating to the Business: Non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, may adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: Any dispute with employees or shortage of skilled or unskilled labours could affect the company's ability to meet the quality standards and timely completion of orders.
- Risks Relating to the Business: Certain properties of the company is not located on land owned by it and the company has only leasehold rights. Its inability to renew the lease agreements and/or leave and license agreements or any adverse impact on the title or ownership rights of the company's landlords/owners in relation to these premises may impede its operations.
- Risks Relating to the Business: If the company's products fails to meet its customers quality standards, it could result in the company's removal from its end-user customers supplier lists, which would have a material adverse effect the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company has entered and will continue to enter into related party transactions which may involve conflicts of interest. These or any future related party transactions may potentially involve conflict of interest and there can be no assurance that the company could not have achieved better terms, had such arrangements been entered into with unrelated parties.
- Risks Relating to the Business: The company is subject to risks arising from exchange rate fluctuations which may adversely impact its results of operations and cash flows.
- Risks Relating to the Business: In the event that any of the company's products are alleged or determined to have caused, or are perceived to have caused, adverse side effects, whether substantiated or not, such occurrences may materially and adversely affect its reputation, customer confidence, revenue generation and overall profitability.
- Risks Relating to the Business: The company's operations are subject to significant working capital requirements, and any inability to secure adequate funding in a timely manner may adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: The company is dependent on third-party transportation providers for the supply and distribution of its products. Any failures or delay in such transportation and logistics arrangements could materially affect the company's business, its operations and financial condition.
- Risks Relating to the Business: The company's Promoters have provided personal guarantees for its secured loans. Revocation of these may adversely impact on the company's business, financials, and prospects.
- Risks Relating to the Business: The Company's logo is not registered as on date of the Red Herring Prospectus. Its may be unable to adequately protect the company's intellectual property. Furthermore, its may be subject to claims alleging breach of third-party intellectual property rights.
- Risks Relating to the Business: The Company is subject to certain outstanding tax demands. Any adverse decision in relation to such demands may have an adverse effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The company has certain contingent liabilities which may adversely affect its financial condition.
- Risks Relating to the Business: Any failures or disruption in the company's information technology systems, or its inability to effectively adapt to evolving technological advancements, may materially and adversely affect the company's business operations.
- Risks Relating to the Business: Upon completion of the Issue, the company's Promoters will continue to exercise significant control over its Company, including the ability to influence or determine the outcome of matters requiring shareholders' approval.
- Risks Relating to the Business: If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Risks Relating to the Business: The company is subject to the risk of fraud, theft, embezzlement by its employees and customers, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- Risks Relating to the Business: The declaration and payment of dividends in the future is subject to the discretion of the company's Board and will depends upon a number of factors, including but not limited to, its earnings, financial position, working capital requirements, capital expenditure plans and the terms and conditions of any restrictive covenants contained in the company's financing agreements.
- Risks Relating to the Business: Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risk.
- Risks Relating to the Business: The company is dependent on credit facilities from banks and financial institutions to fund its business operations. Any event where the company is unable to obtain, renew or enhance credit limits from the banks and financial institutions, or repay such facilities obtained, would affect the company's financial position and credit standing.
- Risks Relating to the Business: Some of the company's loan agreements contain restrictive covenants which may adversely affect its business results of operations and financial condition.
- Risks Relating to the Business: The Company has availed unsecured loans which is repayable on demand. Any demand from lenders for repayment of such unsecured loans, may affect its cash flows.
- Risks Relating to the Business: The company's failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- Risks Relating to the Business: The average cost of acquisition of Equity shares by the company's Promoters may be lower than the Issue price.
- Risks Relating to the Business: The company's historical revenue growth may not be sustained in the future, and pricing pressures or other adverse factors may materially affect its business, results of operations and financial condition.
- Risks Relating to the Business: The company's funding requirements and the proposed deployment of Net Proceeds have not been appraised by a financial institution or a bank or any other independent agency. Further, the company has not entered into definitive arrangements with some of the vendors to utilize certain portions of the Net Proceeds of the Issue. The company has relied on the quotations received from third parties for estimation of the cost for its capital expenditure requirements and have not been independently appraised by a bank or a financial institution.
- Risks Relating to the Business: If the company inadvertently infringe upon the intellectual property rights of others, its business and results of operations may be adversely affected. Further, failures to maintain confidential information of the company's customers could adversely affect its results of operations or damage the company's reputation.
- Risks Relating to the Business: Its performance may be adversely affected if the company is not successful in forecasting customer demands, managing its inventory or working capital.
- Risks Relating to the Business: The Company is not in strict compliance with the Corporate Social Responsibility as required under the provision of Companies Act 2013.
- Risks Relating to the Business: Delays or outages in the company's monitoring systems could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company's business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Unavailability of such adequate and uninterrupted supply of electrical power may significantly impact on its business and results of operation.
- Risks Relating to the Business: Any variation in the utilisation of the company's Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
- Risks Relating to the Business: The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances.
- Risks Relating to the Business: An increasingly stringent regulatory environment with regard to foods, cosmetic ingredients and other specialty additives could result in stricter standards being applied to the company's products, which could cause it to incur substantial costs and may therefore have an adverse effect on its business and results of operations.
- Risks Relating to the Business: The company operates in chemical industry which is highly regulated sector and if the company fails to comply with the regulations prescribed by the authorities of the jurisdictions in which the company operates, its business, results of operations, cash flows and financial condition could be adversely affected.
- Risks Relating to the Business: The company has not entered into any technical support service contract for the maintenance and smooth functioning of its equipment's and machineries, which may affect the company's performance.
- Risks Relating to the Business: Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company's business and results of operations.
- Risks Relating to the Business: The company could be harmed by employee misconduct that is difficult to detect and any such incidences could adversely affect its financial conditions, results of operations and reputation.
- Risks Relating to the Business: The Company does not have any similar and comparable listed peer which is involved in same line of business.
- Risks Relating to the Business: The company's inability to successfully implement some or all its business strategies in a timely manner or at all could have an adverse effect on the company's business.
- Risks Relating to the Business: The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business and results of operations.
