Shanti Inorganics

Established in 1998 by Mr. Manoj J. Patel, Shanti Inorganics has evolved into a trusted name in the inorganic chemical manufacturing landscape. Over nearly three decades, the company has built a robust operational foundation focusing on sulfur-based chemistry to serve high-demand industrial segments.

The company's core business model revolves around the production of a wide range of sulfur-based inorganic chemicals. Its primary product portfolio includes ammonium bisulphite, sodium bisulphite solutions, sodium meta/bisulphite, and sodium sulphite powder, which serve as critical process intermediates and oxygen scavengers.

Shanti Inorganics maintains a significant global footprint, exporting over 60% of its total production to more than 15 different countries. This export-oriented approach reduces domestic market dependency and allows the company to capture international margins across diverse geographies.

Operationally, the company functions out of two advanced manufacturing facilities located in Ahmedabad, Gujarat. These facilities cover approximately 28,000 square meters and are equipped with fully automated plants and state-of-the-art infrastructure to ensure high quality and consistency.

The company's growth is steered by its promoters, Manojkumar Jayantilal Patel and Avnish Manojkumar Patel, who have scaled the business from a local manufacturing unit to an international supplier serving the pharmaceutical, food, beverage, and oil drilling industries.

Shanti Inorganics is launching a book-build issue to raise approximately ₹47.23 Crores, consisting entirely of a fresh issue with no Offer for Sale (OFS) component. The IPO price band is set between ₹79 and ₹83 per share, with a minimum retail lot size of 3,200 shares. The issue is scheduled to open on August 31, 2026, and close on September 2, 2026, with listing on the NSE SME platform on September 7, 2026.

The proceeds from the fresh issue are strategically earmarked for growth, with ₹43.00 Crores dedicated to capital expenditure for a new manufacturing facility in Bavla, Ahmedabad. This facility will focus on producing sodium meta bisulphite, sodium bisulphite powder, and ammonium bisulphite, signaling the company's intent to expand its production capacity.

Financial performance has shown a steady upward trajectory over the last three years. Revenue increased from ₹45.06 Crores in FY24 to ₹58.46 Crores in FY25, reaching ₹72.93 Crores in FY26. Similarly, Profit After Tax (PAT) grew from ₹5.12 Crores to ₹7.99 Crores and finally to ₹10.22 Crores in FY26, demonstrating strong operational scalability.

From a valuation perspective, the company reports a healthy ROE of 27.68% and a ROCE of 23.40%. While there are no direct listed peers for a precise P/E comparison, the high PAT margin of 14.01% and a moderate debt-to-equity ratio of 0.64 provide a comfortable financial cushion.

Key investment strengths include the 100% fresh issue structure—which indicates promoter confidence—and a strong export presence. However, investors should consider risks such as the concentration of manufacturing in Gujarat and the inherent volatility of the chemical sector's raw material costs.

Overall, the IPO presents a growth-oriented opportunity backed by improving financials and a clear expansion plan. Investors may view the issue as an entry into a niche chemical manufacturer with strong institutional appetite and a scalable business model.