Shivchem Agro Ltd IPO
Agro Chemicals
Price Band
₹59 – ₹62
Lot Size
2000
Minimum Bid Quantity
4000
Minimum Investment
₹248000
Issue Size
₹14.01Cr
Opens
2026-09-28
Closes
2026-09-30
Listing
06-10-2026
IPO Details
Issue Type
EQUITY
Face Value
₹5
Tick Size
1
ISIN
INE18CU01023
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Shivchem Agro is an agrochemical company engaged in the manufacturing, stocking, distribution, and sale of agricultural formulations in India. Its product portfolio comprises insecticides, fungicides, herbicides, plant growth regulators, rodenticides and fertilisers, offered in solid and liquid formulations for crop protection and agricultural applications. The company is licensed to sell, stock, exhibit, and distribute its products across eight states: Andhra Pradesh, Telangana, Odisha, Assam, Bihar, West Bengal, Uttar Pradesh, and Madhya Pradesh. As of March 31, 2026, it had 685 distributors and operated five godowns across these states. Its manufacturing facility is located in Jhajjar, Haryana, and is equipped with an effluent treatment plant and wet scrubber unit. The company is ISO 9001:2015, ISO 22000:2018, and ISO 31000:2018 certified and has obtained the required pollution control consents for its manufacturing operations.
Pros
- • The company claims to offer a diversified portfolio of agrochemical products, with licenses under the Insecticides Act, 1968, for 176 products, comprising 88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators, and 3 rodenticides. It also holds a license under the Fertiliser Control Order, 1985, for manufacturing 82 fertilisers, enabling it to cater to varied agricultural requirements.
- • The company claims to have developed relationships with distributors across multiple states, supporting its product reach and sales. As of March 31, 2026, it had 685 distributors supported by a 39-member sales and marketing team.
- • The company claims to conduct on-field product demonstrations to provide farmers with guidance on product dosage and application techniques. These campaigns are conducted by a six-member team comprising field officers and a marketing development officer. The company also provides demonstration videos through its website and YouTube channel to support farmer education and product awareness.
Cons
- • The company’s net cost of materials consumed stood at Rs 18.67 crore in FY26, Rs 15.24 crore in FY25 and Rs 5.64 crore in FY24, representing 63.41%, 63.54% and 61.14% of total expenses, respectively. The company typically procures raw materials through purchase orders without long-term supply contracts, exposing it to price volatility arising from commodity prices, currency movements, climatic conditions, production and transportation costs, and regulatory or trade changes. Any increase in raw material costs that cannot be passed on through higher product prices could adversely affect margins, profitability, and financial condition.
- • The company depends on a limited number of suppliers for its raw materials. Its top 10 suppliers accounted for 71.29% of purchases in FY26, 83.81% in FY25, and 77.35% in FY24. Any failure or disruption in procuring raw materials from these suppliers could affect manufacturing operations, product availability, and results of operations.
- • The company’s business is sensitive to seasonal variations and unpredictable weather conditions affecting agricultural activity. Erratic monsoons, droughts, and floods may disrupt farming cycles, reduce crop yields, and affect the timing and extent of agrochemical applications. Changes in pest patterns and extreme weather conditions may also affect demand for pesticides and fertilisers, potentially adversely impacting the company’s business, results of operations, and financial condition.
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