Shivchem Agro Ltd. IPO

Shivchem Agro

• Shivchem Agro is coming out with an initial public offering (IPO) of 22,60,000 shares in a price band of Rs 59-62 per equity share.
• The issue will open for subscription on September 28, 2026 and will close on September 30, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 5 and is priced 11.80 times of its face value on the lower side and 12.40 times on the higher side.
• Book running lead manager to the issue is Shannon Advisors.
• Compliance officer for the issue is Monika Sharma.

Profile of the company

The company is ISO 9001:2015, ISO 22000:2018 and ISO 31000:2018 certified agrochemical company operating in India, engaged in the manufacturing, stocking, exhibiting, distribution, and sale of agricultural formulations. Its product portfolio includes insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers. It provides its customers with crop protection solutions designed to support farmers in agricultural output through manufacturing, supply and distribution of formulations. These Formulations may be in the form of solids (e.g. powders) or liquids (e.g. emulsifiable concentrates).

The company is required to obtain various licenses and permissions from various authorities for manufacturing and sale of its products. During the financial year 2023-24, the company had licenses for manufacturing 232 agrochemical products which expanded to 258 licenses in the financial year 2024-25. With an objective to offer a wide product portfolio, it continuously works to expand its range of agrochemical products. The company is licensed to sell, stock, exhibit and distribute its products in eight states of India, namely, Andhra Pradesh, Telangana, Odisha, Assam, Bihar, West Bengal, Uttar Pradesh and Madhya Pradesh. The company has 685 distributors selling its products across the aforementioned states. For supply and distribution to these distributors, it operates five godowns in the aforementioned states.

Its manufacturing facility is located in Jhajjar, Haryana, and is equipped with machinery and equipment for the manufacturing of agrochemical products. Further, it has installed an Effluent Treatment Plant (ETP) to manage wastewater generated during the manufacturing process and a Wet Scrubber Unit to control air emissions and remove pollutants. Following the installation, it obtained the Consent to Establish and Operate from the Haryana State Pollution Control Board.

Proceed is being used for:

• Funding the working capital requirements of the company
• Repayment/prepayment, in full or part, of certain loans availed by the company
• General corporate purpose

Industry overview

India is currently the fourth largest producer of agrochemicals in the world. As the most populated country in the world, its agriculture demand is incredibly high, hence its agricultural output must meet the ever-growing demands of its population. However, India is also rapidly undergoing urbanisation and digitalisation. The rapid urbanisation is leading to a decline in viable farmland. Therefore, farmers turn to products such as pesticides and fertilizers to enhance their farm output and to protect the agricultural supply chain from pests and disease. Digitalisation has enabled farmers to access comprehensive information about agrochemical products and conveniently place orders for doorstep delivery through online platforms and mobile applications.

The domestic agrochemical market continues to grow which is estimated at $22.56 billion in 2024 and is anticipated to grow at a CAGR of 11.8% to $39.40 billion in 2029. The market size of the domestic fertilizer market represents the larger share in the agrochemicals market compared to pesticides. The fertilizer market was estimated to be $13.79 billion in 2024 and is projected to reach $22.86 billion in 2029, by growing at a CAGR of 10.6%. On the other hand, domestic pesticide market is estimated to be $8.76 billion in 2024 and is expected to grow at a CAGR of 13.5% by 2029. Compared to fertilizers, pesticides are the smaller segment of the market (around 40% share) however, there is still higher demand in the market for pesticides which is forecasted to have larger growth compared to fertilizers.

In India, agriculture holds prime importance and considered as the backbone of the economy. Given the governments thrust to augment farm production aided by policy support and schemes, the industry is expected to hold its potential to grow at a steady rate. However, increasing consumer focus on residue-free and organic food is shifting agricultural practices towards sustainability. This trend is likely to challenge conventional chemical-based agrochemicals and boost the demand for bio-pesticides. Indian manufacturers face competition from global players, especially from China in generic agrochemicals. India’s push for self-reliance through schemes such as Make in Inda likely to encourage the domestic producers in the face of US-China trade tensions.

Pros and strengths

A large and diverse distributors and distribution network: The company has developed relationship with its distributors across various states that has helped it expands its distribution network as well as its reach. As of March 31, 2026, it has 685 distributors. It is focused on leveraging existing relationships with its distributors for the sale of its products. As on March 31, 2026, it has a Sales & Marketing team of 39 who work in sync with the distributors and provide customer service and promote its agrochemical products.

On-Field product demonstrations: It provides farmers with practical guidance through on-field product demonstrations, helping them use its products more effectively. It organizes these demonstrations as part of a campaign led by its team, comprising 6 employees, including field officers and marketing development officer. These demonstrations provide farmers with guidance on the correct dosage and application techniques of its products, helping them address crop related challenges effectively.

Enhanced efficiency through automated filling and packaging machines: To enhance its operational efficiency, it has fully automatic machines for filling and packaging. For the financial year ended March 31, 2025 and 2024, its capital expenditure towards additions to plant & machinery were Rs 229.60 lakh and Rs. 10.90 lakh respectively. This strategic investment will make the processes faster, precise and less labour intensive. By reducing manual intervention, it minimizes the risk of errors, lower labour costs and increase in overall productivity.

Risks and concerns

Reliance on distribution network for revenue generation: The company sells its products through its distribution network, which comprises of various Distributors. As of March 31, 2026, it has 685 distributors who are catered through five godowns situated in the states of Andhra Pradesh, Telangana, Odisha, Assam and Bihar. It relies on two types of customers i.e. Distributors and Non-Distributors. A major portion of its revenue comes from the Distributors. Any challenges in maintaining relationships with these Distributors or unfavourable market developments affecting Distributor driven sale could have an adverse impact on its business, operational performance, cash flows, and overall financial health.

Dependence on top suppliers for raw material procurement: The company depends on a few suppliers for supply of raw materials. Purchases from the company’s top 10 suppliers accounted for 71.29%, 83.81% and 77.35% of total purchases during FY 2025-26, FY 2024-25 and FY 2023-24, respectively. Any failure to procure such raw materials from these suppliers may have an adverse impact on its manufacturing operations and results of operations.

Significant revenue dependence on top ten customers: The Company’s revenue is dependent on its top 10 customers, which contributed 28.71%, 24.00% and 35.70% of total revenue during FY 2025-26, FY 2024-25 and FY 2023-24, respectively. The loss of a significant number of its top customers can adversely affect its profitability, financial condition and results of operations. Changes in customer preferences or strategic priorities may lead to the discontinuation of its business relationships, which could significantly affect its operations. Additionally, it typically does not enter into long-term agreements with its customers. Any inability to retain its customers may have a material adverse impact on its profitability, financial condition and results of operations. 

Outlook

Shivchem Agro is engaged in the manufacturing of agrochemical products. The company are working towards adding new chemistry in the product basket to ensure safer products for users. Its product portfolio includes insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers. On the concern side, it is dependent on third party transportation and logistics service providers for certain operations including transportation of raw materials, distribution and delivery of its products and hazardous waste management. Any defect, damage or destruction caused to its products could adversely affect its business, financial condition and results of operations.

The company is coming out with a maiden IPO of 22,60,000 equity shares of face value of Rs 5 each. The issue has been offered in a price band of Rs 59 - 62 per equity share. The aggregate size of the offer is around Rs 13.33 crore to Rs 14.01 crore based on lower and upper price band respectively. On performance front, its total income increased by 23.03% to Rs 3,383.86 lakh in Financial Year 2025-26 from Rs 2,750.33 lakh in Financial Year 2024-25. Its profit for the period increased by 24.87% to Rs 324.86 lakh in FY 2025-26 from Rs 260.15 lakh in Financial Year 2024-25.

Meanwhile, it aims to diversify its existing product portfolio by introducing new agrochemical products that align and complement its current offerings. During the financial year 2023-24, the company had licenses for manufacturing 232 agrochemical products which expanded to 258 licenses in the financial year 2024-25. The company has license under the Insecticides Act, 1968 for manufacturing 176 agrochemical products including 88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators and 3 rodenticides. In addition, it has license under the Fertilizer Control Order, 1985 for the manufacturing of 82 fertilizers. This continuous expansion of its product range enables it to meet a wide spectrum of agricultural needs, cater to diverse customer segments and position itself in the agrochemical industry.

Jetking Infotrain has submitted Corrigendum to the Notice of 42nd Annual General Meeting of the Members of the Company scheduled to be held on Tuesday, September 29, 2026 at 11:30 a.m.

The above information is a part of company’s filings submitted to BSE.

Desh Rakshak Aushdhalaya has submitted intimation for re-appointment of Mr. Arihant Kumar Jain (DIN: 06401053) as whole-time director of the Company liable to retire by rotation in the 45th AGM of the Company pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The above information is a part of company’s filings submitted to BSE.

IFCI has informed about retirement of Prof. Narayanaswamy Balakrishnan (DIN: 00181842) as Non-Executive, Non-Independent Director of the Company w.e.f. September 25, 2026.

The above information is a part of company’s filings submitted to BSE.

Tyche Industries has informed that the Trading window of the Company shall remain closed w.e.f. October 1, 2026 till the expiry of 48 hours after the declaration of the Financial results of the Company for the 2nd quarter and half-year ended September 30, 2026.

The above information is a part of company’s filings submitted to BSE.