Shah Investors Home IPO DRHP: ₹60 crore fresh issue; FY26 revenue ₹71.48 cr, PAT ₹13.11 cr
- Shah Investors Home Ltd files DRHP for ₹60 crore fresh issue to fund working capital and MTF expansion.
- FY2026 revenue stood at ₹71.48 crore, down from ₹94.27 crore in FY2025, with PAT falling to ₹13.11 crore.
- Operating cash flows remained negative for two consecutive years, driven by working capital absorption.
- IPO opens on September 28, 2026, with listing scheduled for October 6, 2026.
*this image is generated using AI for illustrative purposes only.
Shah Investors Home Limited, a Gujarat-based full-service retail broking firm, has filed its Draft Red Herring Prospectus to raise ₹60 crore through a fresh issue. The company, operating under the brand Shah Investors, offers equity and derivatives brokerage, depository services, and mutual fund distribution across 11 branches in Gujarat and Maharashtra.
About the Company
Incorporated in 1994 and headquartered in Gift City, Gandhinagar, Shah Investors Home Limited (SIHL) has over three decades of operational history. The company serves more than 1,00,000 demat accounts and 38,189 active clients as of March 31, 2026. SIHL operates through 181 authorised persons and maintains a strong presence in Gujarat, which contributes over 93% of its brokerage income. The firm’s revenue streams include equity and derivatives brokerage, which accounted for 64.78% of revenue in FY2026, along with Margin Trading Facility (MTF) services, depository operations, and mutual fund distribution via its SIHL Fundspro platform.
The company has emphasized digital transformation, with digital brokerage income rising from 17.61% in FY2024 to 42.62% in FY2026. It operates proprietary platforms including SIHL Moneymaker for equity trading and the newly launched ALGOFY for API-powered algorithmic trading.
Financial Performance
SIHL reported consolidated revenue from operations of ₹71.48 crore in FY2026, a decline from ₹94.27 crore in FY2025. Profit After Tax (PAT) stood at ₹13.11 crore in FY2026, down from ₹23.42 crore in the previous year. Total assets increased slightly to ₹304.44 crore in FY2026.
| Parameter | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from Operations | ₹71.48 Cr | ₹94.27 Cr | ₹77.82 Cr |
| Profit Before Tax | ₹18.31 Cr | ₹31.40 Cr | ₹24.01 Cr |
| Profit After Tax | ₹13.11 Cr | ₹23.42 Cr | ₹18.05 Cr |
| Total Assets | ₹304.44 Cr | ₹302.57 Cr | ₹298.76 Cr |
| Total Equity | ₹180.54 Cr | ₹169.06 Cr | ₹151.49 Cr |
Operating cash flows remained negative for the second consecutive year, recording -₹19.70 crore in FY2026 compared to -₹31.86 crore in FY2025. This trend contrasts with the positive operating cash flow of ₹110.19 crore reported in FY2024.
Why the Company Is Raising Funds
The entire ₹60 crore fresh issue proceeds will be utilized for working capital requirements. Specifically, the funds are earmarked for expanding the Margin Trading Facility (MTF) book, funding trade receivables, and maintaining balances with banks to support increased transaction volumes. A portion of the proceeds is also allocated for general corporate purposes, subject to regulatory caps on the percentage of gross proceeds.
Business Strengths
SIHL highlights its established client base, with 72.61% of active clients holding accounts for more than five years. The company reports a customer addition CAGR of 15.30% between FY2024 and FY2026. Its digital platforms have gained traction, with SIHL Moneymaker recording over 33,000 downloads and a 4.5 rating on the Google Play Store. The management team, led by promoters with over 30 years of combined experience in stock broking, oversees operations through a network of 11 branches and 181 authorised persons.
Key Risks
The company faces significant geographic concentration risk, with over 93% of brokerage income derived from Gujarat. Any adverse economic conditions or increased competition in this region could materially impact financial performance. Additionally, SIHL has reported negative net cash flows from operating activities in FY2025 and FY2026, driven by MTF book expansion and rising trade receivables. Trade receivables grew to ₹2,689.38 lakh in FY2026, representing 37.63% of revenue, up from 10% in FY2024.
Other disclosed risks include heavy reliance on authorised persons, who contribute over 50% of revenue but exhibit attrition rates up to 20.69%. The company also faces regulatory compliance risks under SEBI, NSE, BSE, MCX, AMFI, and NSDL guidelines, having previously incurred penalties for non-compliance. Dependence on third-party software providers without formal agreements poses technology dependency risks.
Important IPO Dates
- Issue Open Date: 28-Sep-2026
- Issue Close Date: 30-Sep-2026
- Allotment Date: 01-Oct-2026
- Listing Date: 06-Oct-2026
Offer Details
- Issue Type: Initial Public Offering (IPO)
- Fresh Issue Size: ₹60.00 Crore
- Offer for Sale: Not Available
- Price Band: Not Available
- Lot Size: Not Available
Bottom Line
Shah Investors Home Limited is seeking ₹60 crore to bolster its working capital and MTF book amidst a backdrop of declining revenues and profits in FY2026. While the company boasts a loyal client base and growing digital adoption, it faces challenges from geographic concentration, negative operating cash flows, and rising trade receivables.
How will the expansion of the Margin Trading Facility (MTF) book impact SIHL's operating cash flow stability given the two consecutive years of negative flows?
What specific strategies will management implement to diversify revenue beyond Gujarat to mitigate the 93% geographic concentration risk?
Can the company sustain its 15.30% customer addition CAGR while competing against zero-brokerage discount brokers in the broader Indian market?
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