Shreeji Global FMCG IPO – “SHETHJI” Spices Brand Enters Public Markets

Gujarat-based Shreeji Global FMCG Ltd, which manufactures and processes spices, seeds, grains, pulses and multigrain flour under its brand “SHETHJI”, is launching its Initial Public Offering (IPO) on the SME platform of the National Stock Exchange of India (NSE) to raise up to ₹85 crore. The public issue opens for subscription from 4 November 2025 and closes on 7 November 2025.

Company Overview & Business Model

Shreeji Global FMCG is engaged in the manufacturing, processing and distribution of a wide portfolio of agro-food products — including whole and ground spices, seeds, grains, pulses, and flour (atta). The company markets its products under the brand name “SHETHJI” as well as supplies white-label products for other customers.
Their processing facilities are located in Gujarat (Rajkot & Morbi region) which provides logistical advantages for export and sourcing of raw materials. The company claims presence across ~22 Indian states and exports into ~25 countries.
It sources a variety of agro-commodities, including some imported items such as Madagascar cloves and star anise, non-GMO milling wheat etc., processed in-house for both retail and bulk segments.

IPO Details

Here are the key points of the issue:

• Issue size: Up to 68,00,000 equity shares, aggregating to ~₹81.60-₹85.00 crore at the upper end of the price band.
• Price band: ₹120 to ₹125 per equity share (face value ₹10).
• Lot size / minimum investment: Minimum application is 1,000 shares (investment ~₹1,25,000 at upper price band) for retail category. Some sources list minimum retail lot as 2,000 shares (~₹2,50,000) depending on category.
• Opening & closing dates: 4 November 2025 to 7 November 2025.
• Listing date (tentative): 12 November 2025 on NSE SME platform.
• Offer type: Fresh issue of shares (no offer for sale) mainly to raise capital for expansion / capex.
• Allocation categories: Anchor portion ~11,62,000 shares, QIB ~7,76,000 shares, NII ~13,56,000 shares, RII ~31,66,000 shares, market maker ~3,40,000 shares.

Use of Proceeds

The company plans to deploy the funds raised through the IPO for various growth/operational objectives:

• Capital expenditure for factory premises.
• Purchase of plant & machinery and setting up cold storage facility.
• Installation of solar power system for internal consumption to improve energy efficiency.
• Working capital requirements (to support procurement, inventory, fulfillment) and general corporate purposes.

Financial Performance & Key Metrics

• For FY25 (ended 31 March 2025), revenue stood at ₹650.85 crore, up from ₹588.99 crore in FY24. PAT jumped to ₹12.15 crore from ₹5.47 crore.
• EBITDA improved significantly; margins are still modest given the raw-material/processing business.
• The company’s business is capital intensive and commodity-linked; the moat is partly dependent on processing efficiency, sourcing scale, branding and export reach.

Strengths & Opportunities

• Strong platform in the Indian FMCG food processing space (spices, grains, flour) where demand for processed, branded, value-added products is rising.
• Export orientation and presence across multiple geographies helps diversify away from domestic competition.
• Backward integration and location advantage (Gujarat) provide sourcing & logistics benefit.
• Clear capex plan for expansion and efficiency (cold storage, solar power) indicating sustainability focus and capacity enhancement.

Risks & Considerations

• Commodity price volatility: As a food-processing business reliant on agro-commodities (spices, seeds, grains) the margins are sensitive to raw material cost fluctuations, monsoon risk, import duties etc.
• Margin pressure: The business shows growth in absolute profits, but margins remain relatively thin; scale will be critical to improve profitability.
• Competitive FMCG market: Many amateur and established players in the spice/flour space; brand differentiation and distribution strength will matter.
• SME listing: Being listed on the SME platform might result in lower liquidity compared to main board listings; this may affect investor exit dynamics.
• Execution risk: Planned expansion (cold storage, solar installation, export build-out) must be executed well to deliver anticipated benefits.

Investment Outlook

For investors, the IPO of Shreeji Global FMCG presents a growth-oriented opportunity in a mid-sized food-processing company targeting branded products and exports. The valuation at ₹120-125 must be weighed against the growth potential, execution capability, and market/commodity risks.

• Bull case: If the company scales its operations, maintains margin improvement, and capitalises on export opportunities, it may deliver moderate to good returns post-listing.
• Base case: Given moderate growth and margin constraints, the upside may be limited in short term; good for medium-term investors comfortable with SME stocks.
• Bear case: If commodity headwinds or execution delays occur, returns may be muted and risk of underperformance exists.

Long-term investors may apply if they believe in the firm’s growth story, execution roadmap and sector tailwinds. Short-term traders should watch subscription, listing premium and grey market premium (GMP) dynamics.