Shivchem Agro IPO Day 2: Subscribed 0.42x; Retail jumps 47%; bHNI leads at 0.91x
- Total subscription reached 0.42x by end of Day 2
- Retail demand jumped 47% to 0.25x
- bHNI segment led with 0.91x subscription
- QIB interest remained at 0.00x
- Issue closes on 30 September 2026
*this image is generated using AI for illustrative purposes only.
Shivchem Agro's IPO saw total subscription climb to 0.42x on Day 2, with Retail demand jumping 47% and bHNI leading at 0.91x.
Subscription Status
The overall subscription for Shivchem Agro's IPO improved significantly on Day 2 (29 September 2026), rising to 0.42x from 0.11x at the close of Day 1. The momentum was primarily driven by non-institutional investors, with the big HNI (bHNI) segment showing the strongest appetite at 0.91x. Retail investors also picked up pace, increasing their subscription level from 0.10x on Day 1 to 0.25x on Day 2. However, Qualified Institutional Buyer (QIB) interest remains absent, with subscription standing at 0.00x throughout the first two days.
Subscription Progression
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 28-09-2026 | 0.00x | 0.07x | 0.17x | 0.10x | 0.11x |
| Day 2 | 29-09-2026 | 0.00x | 0.09x | 0.91x | 0.25x | 0.42x |
Category-wise Breakdown
- QIB: 0.00x — No institutional bids were recorded through Day 2.
- NII (bHNI): 0.91x — This category emerged as the leader, showing substantial growth compared to Day 1 levels.
- NII (sHNI): 0.09x — Small HNI demand saw a slight dip from Day 1 figures.
- Retail: 0.25x — Retail participation increased notably, reflecting a 47% jump in subscription volume during the day.
- Total: 0.42x — The issue is currently less than half subscribed with one day remaining for closure.
Intra-day Timeline on 29-09-2026
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.09x | 0.17x | 0.15x |
| 12:15 | 0.00x | 0.09x | 0.25x | 0.42x |
Offer Details
| Parameter | Details |
|---|---|
| Price Band | ₹59 – ₹62 per share |
| Issue Size | 2,36,000 – 5,00,000 shares |
| Minimum Bid Quantity | 4,000 shares |
| Issue Open | 28 September 2026 |
| Issue Close | 30 September 2026 |
About the Company
Shivchem Agro Limited is an ISO-certified agrochemical company incorporated in 2021. It manufactures and distributes agricultural formulations such as insecticides, fungicides, herbicides, and fertilizers. The company operates a 22,680 sq. ft. facility in Jhajjar, Haryana, and holds licenses for 176 agrochemical products and 82 fertilizers. As of March 31, 2026, it distributes products across 8 states through 685 distributors. The company is led by MD Rohit Agarwal and CEO Sachin Agarwal.
Financial Highlights
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations (₹ crore) | 10.94 | 27.46 | 33.82 |
| Total Revenue (₹ crore) | 10.95 | 27.50 | 33.84 |
| Total Expenses (₹ crore) | 9.22 | 23.98 | 29.44 |
| Profit Before Tax (₹ crore) | 1.73 | 3.52 | 4.40 |
| Net Profit (₹ crore) | 1.29 | 2.60 | 3.25 |
| Total Assets (₹ crore) | 16.41 | 36.29 | 45.04 |
| Total Equity (₹ crore) | 1.50 | 9.67 | 12.92 |
Revenue from operations grew at a two-year CAGR of ~75.79%, with an EBITDA margin of 17.69% in FY2026.
Objects of the Issue
- Funding Working Capital Requirements: ₹6.90 crore for trade receivables, inventories, and day-to-day operations.
- Debt Repayment / Prepayment of Loans: ₹3.50 crore for repayment of business loans and working capital facilities.
- General Corporate Purpose: Balance of fresh issue proceeds for operating expenses and business development.
Risk Factors
- Regulatory Approvals and Licensing Risk: Dependence on licenses under the Insecticides Act, 1968 and Fertilizer Control Order, 1985.
- Raw Material Cost Concentration: Materials consumed account for ~63% of expenses, with high dependency on top suppliers.
- Negative Cash Flows: History of negative operating cash flows in FY2024 and FY2025.
- Single Manufacturing Facility Risk: All production is concentrated in one leased facility in Haryana.
- Statutory Compliance Failures: Past delays in GST, EPF, and Labour Welfare Fund payments.
How might the complete absence of QIB interest influence Shivchem Agro's post-listing price stability and institutional confidence?
What impact will the reliance on bHNI and retail demand have on the company's future equity valuation multiples compared to peers with strong institutional backing?
Can Shivchem Agro's projected revenue growth sustain its current EBITDA margins given the high concentration of raw material costs and single-facility production risks?
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