Shivchem Agro IPO Day 3: Subscribed 1.34x; Retail jumps 24.7% to lead demand
- Shivchem Agro IPO subscribed 1.34x overall on Day 3
- Retail investors led demand with a subscription of 2.02x
- QIBs recorded zero subscription throughout the issue period
- NII segment ended with sHNI at 0.97x and bHNI at 0.43x
*this image is generated using AI for illustrative purposes only.
Shivchem Agro IPO concluded its subscription period with an overall subscription of 1.34x on Day 3. Retail investors led the surge, jumping 24.7% to reach 2.02x, while QIBs remained at 0.00x throughout the issue.
Subscription Status
The Shivchem Agro IPO witnessed a significant acceleration in retail demand on the final day, pushing the overall subscription above the 1x threshold. While Qualified Institutional Buyers (QIBs) recorded zero interest across all three days, Retail investors drove the oversubscription, ending at 2.02x. Non-Institutional Investors (NII) showed mixed performance, with small HNIs leading slightly over big HNIs in the final tally.
| 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 | 0.20x | 0.97x | 0.68x | 0.66x |
| Day 3 | 30-09-2026 | 0.00x | 0.43x | 0.97x | 2.02x | 1.34x |
Category-wise Breakdown
Retail investors were the primary driver of the issue's success, with subscription levels rising from 0.10x on Day 1 to 2.02x by the close of Day 3. Among Non-Institutional Investors, the small High Net-worth Individuals (sHNI) segment subscribed 0.97x, while the big HNI (bHNI) segment ended at 0.43x. The absence of institutional interest from QIBs highlights a retail-led bid for the agrochemical company's shares.
Intra-day Timeline
On Day 3, momentum picked up significantly between 11:15 IST and 12:15 IST. Retail subscription jumped from 1.62x to 2.02x, contributing to an overall rise in total subscription from 1.13x to 1.34x. The bHNI segment also saw a 19.4% increase during this window.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.36x | 1.62x | 1.13x |
| 12:15 | 0.00x | 0.43x | 2.02x | 1.34x |
Offer Details
Shivchem Agro Limited offered shares in the price band of ₹59.00 - ₹62.00 per share. The minimum bid quantity was set at 4000 shares. The issue opened on September 28, 2026, and closed on September 30, 2026.
About the Company
Shivchem Agro Limited is an ISO-certified agrochemical company incorporated in 2021. It engages in the manufacturing, distribution, and sale of agricultural formulations including insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers. The company operates a manufacturing 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 in India through a network of 685 distributors.
Financial Highlights
The company reported revenue from operations of ₹33.82 crores in FY2025-26, reflecting significant growth from ₹27.46 crores in FY2024-25 and ₹10.94 crores in FY2023-24. Profit before tax stood at ₹4.40 crores in FY2025-26.
| Metric (₹ Crores) | FY2025-26 | FY2024-25 | FY2023-24 |
|---|---|---|---|
| Revenue from Operations | 33.82 | 27.46 | 10.94 |
| Total Revenue | 33.84 | 27.50 | 10.95 |
| Profit Before Tax | 4.40 | 3.52 | 1.73 |
| Total Profit | 3.25 | 2.60 | 1.29 |
| Total Assets | 45.04 | 36.29 | 16.41 |
Objects of the Issue
The company intends to utilize the net proceeds as follows:
- Funding Working Capital Requirements: ₹6.90 crores to cover trade receivables, inventories, and day-to-day operations.
- Debt Repayment / Prepayment of Loans: ₹3.50 crores towards full or partial repayment of borrowings to reduce indebtedness.
- General Corporate Purpose: Balance amount for operating expenses, business development, and unforeseen exigencies.
Risk Factors
Key risks identified in the offer documents include:
- Regulatory Approvals: Dependence on statutory approvals under the Insecticides Act, 1968, and Fertilizer Control Order, 1985.
- Raw Material Concentration: Net cost of materials consumed represented approximately 63% of total expenses, with high dependency on top suppliers.
- Distribution Network Dependency: Reliance on 685 distributors for revenue generation without direct sales to end customers.
- Negative Cash Flows: History of negative operating cash flows in FY2025 and FY2024, alongside growing working capital requirements.
- Single Facility Concentration: Operational risks associated with relying on a single leased manufacturing facility in Jhajjar, Haryana.
What's Next
Allotment for the Shivchem Agro IPO is scheduled for October 1, 2026. The shares are expected to list on the stock exchanges on October 6, 2026.
How might the complete absence of QIB interest impact Shivchem Agro's post-listing price stability and institutional support?
Will the heavy reliance on retail investors for oversubscription lead to higher volatility and potential selling pressure on the October 6 listing day?
Can Shivchem Agro's recent revenue growth sustain its valuation given the persistent negative operating cash flows highlighted in the risk factors?
18
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
