Shellz India IPO

About Shellz India IPO

The public issue of the Shellz India IPO, a BSE-SME IPO, opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will also take place on TBA. The listing of shares will take place on TBA. The company, Shellz India, had filed its DRHP with SEBI on March 30, 2026 and SEBI has given its approval for the IPO on June 05, 2026.

The offer consists of a fresh issue with no offer for sale (OFS) component. The fresh issue will include 40,00,000 shares (aggregating up to TBA). The specific of the break of the market maker quota will be announced subsequently.

Shellz India is a Book Building IPO with the IPO price band set at TBA. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is TBA (based on upper band price). The minimum lot size investment for HNI is TBA.

Shellz India is in the business of manufacturing and marketing a wide range of confectionary products. Its offerings span over 250 SKUs including chocolate products, jellies, baked treats etc. It also makes and supplies bakery ingredients to the urban and semi-urban market. It has built an extensive distribution network, and its consumer brands are sold under 2 distinct brands; Hugs and Tosca. While Hugs is positioned for the mass market, Tosca is meant for the mass premium market. The company also undertakes third private-label manufacturing on behalf of other companies.

Objectives of Shellz India IPO

• Repayment / prepayment of loans availed by the company
  
• Funding for working capital requirements.
  
• General corporate purpose.
  

Industry Outlook

In terms of consumer demographics, the market is divided into 4 customer classes based on age groups. The children (5-12) prefer candies, lollipops and gummies and the triggers are colours, flavours and cartoon branding. The teens (13-19) prefer wafer-based confectionary and milk-based products and their triggers are taste, trends and peer influence. The young adults (20-35) prefer chocolate and baked confectionary with the triggers for purchase being impulse, nostalgia, and quick snack. Finally, the adult group (over 35) prefers mints, lozenges, and healthier options. Their triggers are refreshment and health consciousness. In India, price remains a critical factor in confectionary purchase.

India’s packaged food industry has grown from ₹3.19 trillion in FY22 to ₹4.46 trillion in FY25, growing at a CAGR of 11.8%. While the MNCs do occupy the cream of the space, mid-sized brands are rapidly gaining traction in this business. The PM Kissan Sampada yojana has also helped in this regard. India’s per capita consumption of confectionary at 0.40 KG a year is among the lowest in the world compared to Germany at 14.4 KG, the US at 9.1 KG, Brazil at 2.8 KG, and Indonesia at 1.1 KG. Currently domestic confectionary manufacturers have a 70% market share while the global players have a 30% market share, and that share is likely to continue through 2030. The segment has been seeing increased formalization compared to earlier times when unorganized segment had a big role to play.

About Shellz India

Shellz India is into the production of confectionary and bakery products. Its confectionary products are marketed under the Hugs (mass market) and Tosca (premium mass market) brands. For the Tosca brand, the company is increasingly relying on the ecommerce channel for sales. Currently, if one looks at the revenue mix, Hugs accounts for 91.6% in FY25, Bakery ingredients 7.6% and just about 0.8% of the revenues come from the Tosca line. The company has consistently reduced its debt/equity ration from 3.06X in FY23 to 1.93X in FY25. The nature of the business is such that it needs to invest heavily in working capital in the form of receivables and inventory.

The company has a wide array products for the mass market, sold under the Hugs Brand. As of FY25, the company saw 47.1% revenues come from baked treats, 33.4% from chocolate delights, 10% from jellies, 7.6% from bakery ingredients, and 2.0% from panned and sugar candies. It is largely a North based supplier with Delhi and Haryana accounting for over 50% of its sales.

Strengths of Shellz India

• Ability to develop differentiated products across price formats.
  
• Wide and diversified portfolio in the mass market.
  
• Super stockist led distribution model allows scalability of volumes.
  
• In house manufacturing for better control over the value chain.
  
• Strong technical expertise in the food industry in-house.
  

Risks of Shellz India

• Client tastes change rapidly and that has to be properly anticipated.
  
• Price remains a big factor in demand determination.
  
• Unorganized sector still plays a big role in the confectionary market.
  
• While debt is falling, it still remains fairly high even in FY25
  
• High funds locked in working capital in the form of receivables and inventories
  
• No long-term customer contracts in the business. Top 10 customers give 45% business
  
• Nearly 97% of revenues comes from super-stockists making the model vulnerable
  
• It needs to compete against established brands with global standing.
  

They have mentioned listed peers which fall in the similar line of business as of the company for broad comparison purposes. This company does not have any comparable peer group companies.

Note: (i) Source – All the financial information for listed industry peer mentioned above is sourced from the Financial Results/ Red Herring Prospectus/ Prospectus/ of the aforesaid companies for the year ended March 31,2025 and stock exchange data dated March 27,2026 to compute the corresponding financial ratios.

(ii) For the company, they have taken Current Market Price as the issue price of equity share. Further, P/E Ratio is based on the current market price of the respective scrips.

(iii) The EPS, NAV, RoNW and total Revenue of the company are taken as per Restated Financial Statement for the F.Y. 2024- 25.

(iv) NAV per share is computed as the closing net worth divided by the weighted average number of paid-up equity shares as on March 31, 2025.

(v) RoNW has been computed as net profit after tax divided by closing net worth.

(vi) Net worth has been computed in the manner as specified in Regulation 2(1) (hh) of SEBI (ICDR) Regulations, 2018.

(vii) The face value of Equity Shares of the Company is ₹ 10/- per Equity Share and the Issue price is [TBA] times the face value of equity share.

Anchor Investor Bidding Date: TBA

Registrar Details
Bigshare Services Private Ltd
Email: ipo@bigshareonline.com
Phone: +91-22-6263-8200

Book Running Lead Manager
Socradamus Capital Private Ltd

Shellz India Contact Details
39/35, 2nd Floor, Main Rohtak Road, Near Shivaji Park Metro Station, West Punjabi Bagh, Shivaji Park (West Delhi), New Delhi - 110026
Email: investor@shellz.in
Phone: 91-11-4850-4850

Shellz India Business Model

It has a confectionary model that focuses on catering to the mass market while making forays into the mass premium market. It uses a stockist model for selling its products. Its demand is largely based out of North India and its strength lies in anticipating changing demand trends well in advance.

Shellz India Growth Trajectory

Shellz India Operating Revenues for FY25 was ₹186.973 crores, whereas in FY24 and FY23 it was ₹162.413 crores and ₹158.522 crores, respectively.

The Profit After Tax for FY25 was ₹8.302 crores, whereas in FY24 and FY23 it was ₹5.255 crores and ₹3.193 crores, respectively. PAT margins increased from 2.01% to 4.44% between FY23 and FY25

Their EBITDA for FY25 was ₹22.787 crores, whereas in FY24 and FY23 it was ₹18.937 crores and ₹15.314 crores, respectively. EBITDA margins increased from 9.66% to 12.19% between FY23 and FY25.

Shellz India Market Position

Shellz remains a mass market confectioner. While it has made forays into the premium segment, the contribution to revenues is too small at this stage. It has tried to own the complete value chain. The future opportunities are in the form of outsourcing on behalf of larger players looking at a full-stack manufacturing solution.

How to apply for Shellz India IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.