Shriram Food Industry IPO

About Shriram Food Industry IPO

Shriram Food Industry IPO comprises a fresh issue and an offer for sale. The fresh issue aggregates up to 2,12,00,000 equity shares and the offer for sale aggregates up to 52,00,000 equity shares. It’s a 100% book-built issue. The price band is [TBA].

Shriram Food Industry 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 take place on [TBA].

The listing of shares will take place on [TBA]. The lot size of shares in the IPO is [TBA]. The minimum investment amount required by a retail investor is ₹[TBA] based on the upper price. The minimum lot for retail investors in this IPO is [TBA].

Incorporated in 2014, Shriram Food Industry operates on a business-to-business (“B2B”) model and is primarily engaged in the export of rice to international markets. It’s a part of the well-diversified Greta Group of Companies, a global business house with operations across over 8 countries, including the UK, USA, UAE, Singapore, Indonesia, Poland, Belgium and India.

Objectives of Shriram Food Industry IPO

The company proposes to utilise the IPO proceeds for:

• Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company from banks or financial institutions
• General corporate purposes

Industry Outlook

India’s rice market has shown steady progress, reaching USD 54,639 million in CY24, driven by consistent domestic consumption and robust export demand. Despite occasional fluctuations caused by factors like export restrictions and unpredictable weather patterns, the market has remained resilient due to government support through minimum support price (MSP) policies, increased procurement, and initiatives aimed at promoting high-yield varieties.

The market is expected to continue its upward trajectory, with projections indicating it will reach USD 64,097 million by CY33. This growth will be fuelled by increasing global demand for premium Basmati rice, expanding trade opportunities, and the adoption of climate-resilient rice varieties.

Shriram Food Industry Company Information

Incorporated in 2014, Shriram Food Industry operates on a business-to-business (“B2B”) model and is primarily engaged in the export of rice to international markets. It’s part of the well-diversified Greta Group of Companies, a global business house with operations across over 8 countries, including the UK, USA, UAE, Singapore, Indonesia, Poland, Belgium and India. The company offers a portfolio of rice varieties tailored to different customer needs and segments.

Strengths of Shriram Food Industry

• Strategically located integrated milling and processing facility with adequate storage and expansion potential
• Integrated business model combining trading and manufacturing activities
• Third-party labelling service for international market
• Long standing relationships with customers with high retention rate
• Supply chain efficiency
• Track record of healthy growth

Risks of Shriram Food Industry

• Adverse developments impacting procurement, processing quality, international demand or regulatory environment for rice exports may materially affect business
• Revenues are significantly dependent on a few numbers of rice categories
• Fluctuations in supply or cost and the working capital required to procure and store paddy/raw rice may adversely affect manufacturing operations
• Slowdown or shutdown of manufacturing operations at Nagpur facility could have an adverse effect on business
• Inability to procure desired quality or quantity of raw materials on commercially favourable terms may adversely affect business
• Loss of any top 10 customers or a reduction in purchases by any of them could adversely affect business
• Exchange rate fluctuations may adversely affect results of operations
• Association with the Greta Group may expose the company to risks arising from group-level business decisions
• Failure to maintain product quality or comply with applicable food safety and export standards could adversely affect reputation
• Non-availability of credit ratings or a poor rating may restrict access to capital

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: MUFG Intime India
  
• Book Running Lead Manager: Choice Capital Advisors
  

Shriram Food Industry Business Model

Shriram Food Industry offers a portfolio of rice varieties tailored to different customer needs and segments. Its product range includes parboiled rice, white rice, 100% broken rice along with other by-products including rejection rice and rice bran.

Shriram Food Industry Growth Trajectory

The revenue from operations of Shriram Food Industry grew from ₹1259.6610 crores in FY 23 to ₹1359.4479 crores in FY 25. Its EBITDA margin increased from 4.33% in FY 23 to 5.41% in FY 25, while PAT margin increased from 2.69% in FY 23 to 3.15% in FY 25. An integrated business model and long-standing relationships with customers have helped the company grow over the years.

Shriram Food Industry Market Position

Since commencement of the company’s commercial operations, Shriram Food Industry has exported rice to over 33 countries, reflecting its growing overseas reach and demand for its offerings. During fiscal 2025, fiscal 2024 and fiscal 2023, it has exported rice to 19, 19 and 11 countries, respectively.

How to Apply for the Shriram Food Industry IPO?

To apply for this IPO:

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