Snehaa Organics IPO

About Snehaa Organics IPO

The IPO of Snehaa Organics Ltd comprises a fresh issue of up to 26,79,000 equity shares. There’s no offer for sale in this IPO, which is a 100% book-built issue. The price band is ₹115- ₹122 and the lot size is 1000. The IPO opens on August 29, 2025 and closes on September 2, 2025.

The listing date is on September 5, 2025 and the allotment date is on September 3, 2025. The credit of shares to the Demat account will take place on September 4, 2025, while the initiation of refund will take place on September 4, 2025.

Snehaa Organics Ltd operates in the solvent recovery and recycling sector, providing sustainable solutions for industries that utilise solvents in their processes. The company collects spent solvents from various industries and employs distillation and purification technologies to process them for reuse. The company's workforce ensures efficient recovery from diverse solvent mixtures, including those with significant variability between batches.

Objectives of Snehaa Organics IPO

The company proposes to utilise the IPO proceeds:

• To meet the working capital requirements of the company
• Repayment of loans availed by the company
• General corporate purposes
• To meet the issue expenses

Industry Outlook

The Indian solvent market is currently undergoing significant growth, driven by increased industrial applications and technological advancements. The market's expansion is fuelled by ongoing industrialization, urbanisation, and the growing use of solvents in consumer goods production.

Key sectors such as chemicals, pharmaceuticals, agriculture, automotive, and electronics are driving demand for solvents. Additionally, environmental concerns surrounding volatile organic compounds (VOCs) have prompted the development of eco-friendly solvent alternatives. This shift aligns with global sustainability goals while ensuring compliance with stringent environmental regulations.

The demand for solvents in India is witnessing a robust growth trajectory, driven by increasing industrial applications across diverse sectors such as paints and coatings, pharmaceuticals, adhesives, and cleaning products.

This expansion is fuelled by the booming construction and automotive industries, which are key contributors to the rising solvent consumption. With a healthy compound annual growth rate (CAGR) projected over the coming years, the Indian solvent market is poised for substantial growth.

Company Information

Snehaa Organics Limited operates in the solvent recovery and recycling sector, providing sustainable solutions for industries that utilise solvents in their processes. The company collects spent solvents from various industries and employs distillation and purification technologies to process them for reuse. The company's workforce ensures efficient recovery from diverse solvent mixtures, including those with significant variability between batches.

Each batch undergoes comprehensive quality control measures to align with industry requirements. The company also maintains a testing facility to address specific customer needs.

Strengths of Snehaa Organics IPO

• Technology and infrastructure
• Strategic location
• Good reputation in the pharmaceutical sector
• Experienced and qualified management and employee base
• Strong and consistent financial performance
• Growing customer base
• Scalable and reliable business model

Risks of Snehaa Organics IPO

• Significant revenue coming from selected customers
• Termination in rent agreement could affect operations
• Dependent on few suppliers for purchase
• Geographical concentration in Telangana
• Risks arising from operations involving hazardous substances
• Potential conflict of interests between the company, promoter group companies, group companies/ entities

Peer Comparison

There are no listed companies in India, the business portfolio of which is comparable with Snehaa Organics Ltd. Accordingly it is not possible to provide an industry comparison in relation to the company.

Anchor Investor Bidding Date

Anchor investor bidding date starts from August 28, 2025.

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Skyline Financial Services Pvt Ltd
• Book Running Lead Manager: Fast Track Finsec Pvt Ltd

Business Model

Operating in the solvent recovery and recycling sector, Snehaa Organics Ltd provides sustainable solutions for industries that utilise solvents in their processes. Its main products are:

• Ethyl acetate
• Toluene
• Acetone
• Dimethyl Formamide
• Methanol

Company Growth Trajectory

The revenue from operations of Snehaa Organics Ltd grew from ₹20.1025 crores in FY 23 to ₹26.2233 crores in FY 25, while EBITDA margin grew from 25.41% in FY 23 to 43.52% in FY 25. The company’s PAT margin has grown from 16.15% in FY 23 to 27.98% in FY 25. Good reputation in the pharma sector coupled with a strong customer base has helped the company grow over the years.

Market Position

The company sells its products in the state of Andhra Pradesh, Karnataka, Telangana, Gujarat, Karnataka, Maharashtra and Tamil Nadu, among others. Their revenue from operations has increased from 13.6523 crores in FY23 to ₹26.22 crores in FY25. The company has a good image as a provider of recycled solvents to the solvents industry and has strengthened customer loyalty. The company is recognized as a reliable supplier of eco-friendly solutions, fostering trust among pharmaceutical clients that prioritize sustainability.

How to Check Allotment Status of Snehaa Organics IPO?

1. Visit the Registrar’s Website

• Visit the official website of Skyline Financial Services Pvt Ltd
• Click on ‘Public Issue’ from ‘Investors’ dropdown
• Choose ‘Company Name’
• Enter DPID/Client ID or Application Number or PAN Number
• Click on ‘Search’ to know the status

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO bid verification module. You can use it to check the status of Snehaa Organics Ltd. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for the Snehaa Organics Ltd IPO?

• Log in to your Kotak Neo 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.