Shubhshree Biofuels Energy IPO: Review, Valuation, Date & GMP

Shubhshree Biofuels Energy IPO-Complete Overview

Shubhshree Biofuels Energy IPO an SME IPO is a book built issue of Rs.16.56 crore by Shubhshree Biofuels Energy Ltd. which was founded in 2013 and provides biomass fuels to clients in the metal, textile processing, recyclable materials, and pharmaceutical industries, among others. This includes biomass pellets and briquettes.

With a combined capacity of 132 tonnes per day, the company has installed three briquetting and pelleting machines, of which one is owned by the company and the other two are leased together with the premises. The company produced 12090 tonnes of biomass fuels between October 2023 and February 2024. The entire sales volume was roughly 50600 tonnes, with manufactured items making up roughly 23.8% of the total sales volume.

The majority of the company's clients are from India's northern states, including the NCR, Rajasthan, Uttar Pradesh, and Haryana.

This new SME IPO  is to be launched on 09 September 2024, and its ‘initial public offering’ will end on 11 September 2024.

 

Shubhshree Biofuels Energy IPO Overview

The Rs.16.56 crore Shubhshree Biofuels Energy Ltd. IPO consists of an entirely fresh issue of 13.92 lac Shares.

This SME IPO date is from September 09-September 11, 2024. The expected IPO listing date is Monday, September 16, 2024, on NSE and SME. Shubhshree Biofuels Energy IPO price band is Rs.113 to Rs.119 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

 

Company Financial

The company’s revenue grew by 59% and PAT increased by 36% for FYs between 31 March 2024 and 31 March 2023.Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.1,396.84 lac.

• The total revenue of the company is Rs.9,488.32 lac.

• The company’s PAT is Rs.329.77 lac.

• The net worth of the company is Rs.711.27 lac.

• The company’s EBITDA is Rs.415.82 lac.

 

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital needs.

• Providing capital funding for the installation of new equipment and machinery

• General corporate purposes.

   

  

   

Peers of Shubhshree Biofuels Energy Ltd. 

There are no listed companies in India engaged in the same business of comparable size.

Evaluation

Shubhshree Biofuels Energy IPO Price is Rs.113 to Rs.119 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.8.60 from the last year, the resulting P/E ratio is 13.83x.

Considering the weighted EPS of Rs.6.53 for the last three years, the P/E ratio is 18.22x.Comparative Analysis With Listed Peers

No listed companies. So it is not possible to provide industry comparison.

 

IPO's Strengths 

• Advantage of Location

• A customer-focused strategy

• An environmentally friendly product

• A management team and promoter with experience.

 

IPO’s Weaknesses

• When compared to conventional fuels, the biomass fuel business is still relatively new and lacks a defined market. As a result, potential customers may be reluctant to transition to biomass fuel.

• Nearly all of its sales are derived from operations in a few specific geographic areas, namely Northern India, and any unfavourable events affecting these operations might have a negative effect on its revenue and operational performance.

• Seasonal variations in its business could cause volatility in its operational results.

• Owns a brief operational and financial history, making it challenging to assess its company's operations and future performance based just on historical data.

• Relies on outside companies to meet the majority of its transportation demands. Any interruptions could have an impact on the company's operations, finances, and business.

• The company had a negative cash flow from its operating, investing, and financing activities in the past FYs, and sustained negative cash flow could impact its growth and business.

 

Shubhshree Biofuels Energy IPO GMP Today

Shubhshree Biofuels Energy IPO GMP is Rs.0 as of 05 September 2024.

 

IPO Timetable (Tentative)

The IPO date is from September 09 to September 11, 2024, with allotment on September 12, refund initiation on September 13, and listing on September 16, 2024.

 

Shubhshree Biofuels Energy IPO Details 

 

The IPO with a Face Value of Rs.10 per Share is set to start on September 09, 2024, close on September 11, 2024, and offer a total issue size of 13,92,000 Shares (aggregating up to Rs.16.56 Cr.).

Shubhshree Biofuels Energy IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,42,800 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,85,600.

 

Shubhshree Biofuels Energy IPO Reservation

Promoters And Management of Shubhshree Biofuels Energy Ltd.

• Anurag Agarwal

• Astha Agarwal

• Sagar Agrawal

• Upasna Srivastava Dattani

IPO Lead Managers

• Hem Securities Limited

 

Dividend Policy

The company has not paid dividends since incorporation.

 

Conclusion

The company has experienced negative cash flow in financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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