Shree TNB Polymers IPO DRHP: ₹25.40 crore fresh issue; revenue ₹198.13 crore in FY26
- Shree TNB Polymers files DRHP for SME IPO with a ₹25.40 crore fresh issue.
- Revenue from operations recovered to ₹198.13 crore in FY2026, up 12.79% YoY.
- Proceeds allocated to machinery purchase (₹15.86 crore) and debt repayment (₹5.62 crore).
- Key risks include high customer concentration (61.28%) and regulatory filing delays.
*this image is generated using AI for illustrative purposes only.
Shree TNB Polymers Limited, an ISO-certified polymer manufacturer based in Silvassa, has filed its Draft Red Herring Prospectus for an Initial Public Offering on the SME exchange. The company proposes a fresh issue of ₹25.40 crore to fund capital expenditure and repay borrowings, leveraging a revenue base that recovered to ₹198.13 crore in FY2026.
About the Company
Incorporated in 2007, Shree TNB Polymers operates with over 25 years of cumulative promoter experience. The company manufactures polymer-based products under three distinct brands: 'Noble' (HDPE/PP/PPH pipes, fittings, DWC pipes, and drip irrigation), 'Tirupati' (solid industrial sheets), and 'Wellpack' (PP corrugated/flute board sheets). These products serve the infrastructure, agriculture, and industrial sectors.
The company maintains two manufacturing facilities in Silvassa spanning 23,028 sq. meters with an installed capacity of 24,000 MT per annum. It distributes products through a network of more than 325 dealers across Gujarat, Maharashtra, Rajasthan, and other states, supported by over 39 warehouses. Shree TNB Polymers holds ISO 9001:2015 and ISO 14001:2015 certifications, along with BIS standards including IS 4984, IS 14333, and IS 16098. It is an approved vendor for government bodies such as the Gujarat Water Supply Board and Maharashtra Jeevan Pradhikaran.
Financial Performance
The company reported revenue from operations of ₹198.13 crore in FY2026, representing a 12.79% increase from ₹175.65 crore in FY2025. Profit After Tax (PAT) grew by 23.57% year-on-year to ₹7.13 crore, resulting in a PAT margin of 3.60%. Total assets expanded to ₹145.26 crore, while total equity rose to ₹55.68 crore.
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from Operations | ₹198.13 Cr | ₹175.65 Cr | ₹207.86 Cr |
| Profit Before Tax (PBT) | ₹10.16 Cr | ₹7.21 Cr | ₹6.64 Cr |
| Profit After Tax (PAT) | ₹7.13 Cr | ₹5.77 Cr | ₹5.03 Cr |
| PAT Margin | 3.60% | 3.28% | 2.42% |
| Total Assets | ₹145.26 Cr | ₹127.38 Cr | ₹105.03 Cr |
| Total Equity | ₹55.68 Cr | ₹48.55 Cr | ₹34.21 Cr |
Cash flow from operations improved to ₹8.83 crore in FY2026, while investing activities remained negative at ₹9.23 crore, reflecting ongoing capital expenditure. Trade receivables stood at ₹51.25 crore as of March 31, 2026.
Why the Company Is Raising Funds
Shree TNB Polymers intends to utilize the net proceeds from the fresh issue for specific growth and balance sheet objectives:
- Capital Expenditure for Purchase of Machinery: ₹15.86 crore to enhance manufacturing capabilities and product quality.
- Repayment of Certain Borrowings: ₹5.62 crore to reduce debt burden and improve leverage capacity.
- Capital Expenditure for Solar Panel/Roof Top: ₹2.60 crore to reduce electricity costs at the new facility.
- Part Finance for PEB Structure Construction: ₹1.32 crore for the construction of a Pre-Engineered Building for a new manufacturing facility.
General corporate purposes will be funded by residual proceeds, subject to a cap of the lower of 15% of gross proceeds or ₹10 crore.
Business Strengths
The company benefits from a diversified product portfolio that mitigates single-sector dependency. Promoters bring deep domain expertise, with key management members possessing between 7 and 40+ years of industry experience. The centralized manufacturing location in Silvassa offers cost advantages and strong quality control. Additionally, ISO and BIS certifications, combined with government vendor approvals, facilitate participation in public sector infrastructure tenders.
Key Risks
Material risks disclosed include significant customer concentration, where the top 10 customers contributed 61.28% of FY2026 revenues, a sharp increase from 29.11% in FY2025. The company faces raw material price volatility linked to crude oil prices, with the top 10 suppliers accounting for 61.28% of total purchases. Geographical revenue concentration is notable, with Maharashtra contributing approximately 50.05% of revenues. Furthermore, the company has reported over 60 instances of delays in statutory filings with the Registrar of Companies and carries outstanding litigation and tax proceedings totaling approximately ₹20.18 crore.
Important IPO Dates
- Issue Open Date: 25-Sep-2026
- Issue Close Date: 29-Sep-2026
Offer Details
The issue is structured as a Fresh Issue with no Offer for Sale component. Specific details regarding the price band, lot size, face value, and total issue size are not yet available in the current filing data.
Bottom Line
Shree TNB Polymers presents a profile focused on capacity expansion and debt reduction using IPO proceeds. While the company demonstrates revenue recovery and margin improvement, it contends with high customer concentration, thin profit margins, and regulatory compliance concerns highlighted in its risk factors.
How will the company mitigate the sharp increase in customer concentration risk, which rose to 61.28% in FY2026, to ensure sustainable revenue growth post-IPO?
What specific strategies will Shree TNB Polymers employ to diversify its geographic revenue base beyond Maharashtra, which currently accounts for over 50% of sales?
Given the volatility of crude oil-linked raw materials, how might the planned capital expenditure on machinery and solar panels impact long-term operating margins?
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