Shanti Inorganics Limited has attracted strong attention from investors with its initial public offering (IPO). The company entered the SME IPO market with a fresh issue and saw a sharp rise in demand during the final day.
The IPO opened on August 31, 2026, and closed on September 2, 2026. The price band was set at ₹79 to ₹83 per share. The total issue size was ₹47.24 crore at the upper end of the price band.
The IPO offered 56,91,200 equity shares. It was a fresh issue, which means the money raised through the IPO will go to the company rather than existing shareholders.
The shares are set to list on September 7, 2026. The basis of allotment is expected on September 3, while refunds and share credit are scheduled for September 4.
Subscription Rose Sharply
The biggest talking point was the final subscription figure. Shanti Inorganics IPO closed with a total subscription of 278.39 times, based on the final figures reported by ScanX.
The first two days showed much lower demand. On Day 1, the total subscription stood at 1.41 times. QIBs subscribed 0.23 times, while the bHNI and sHNI portions stood at 0.56 times and 0.38 times. Retail subscription was 0.00 times.
By Day 2, the total figure had reached 6.93 times. QIB subscription rose to 1.63 times. The bHNI and sHNI categories both reached 2.70 times, while retail remained at 0.00 times.
The real jump came on the final day. By the close of Day 3, QIB subscription reached 129.27 times. The bHNI portion reached 215.40 times, while the sHNI portion reached 153.59 times. Retail investors still showed 0.00 times subscription in the ScanX data.
The last few hours saw the biggest rise. At 11:15 AM, total subscription was 32.18 times. It rose to 55.04 times at 12:15 PM, then reached 92.27 times at 1:15 PM. At 2:15 PM, the figure stood at 135.51 times. It moved to 209.83 times at 3:15 PM and finally reached 278.39 times at 4:15 PM.
This shows how strong the demand became near the close of the issue.
What Does Shanti Inorganics Do?
Shanti Inorganics is a manufacturer and supplier of sulphur-based inorganic chemicals. The company was founded in 2010.
Its products include ammonium bisulphite solution, sodium bisulphite powder and solution, sodium metabisulphite, and sodium sulphite powder.
These chemicals have uses across several industries. Food and beverage companies use them for different processing needs. The products also find use in chemicals, oil drilling, pharmaceuticals, ceramics, agrochemicals, water treatment, petrochemicals, cosmetics, paints, polymers, boilers and mining.
The company has one of the larger domestic production capacities for bisulphites, at 18,800 metric tonnes per annum.
This gives the business a base in a specialised chemical segment. However, the company still needs to expand its customer base and production capacity to support future growth.
Strong Growth in Revenue and Profit
The financial numbers are one of the main positive points in the IPO story.
Shanti Inorganics reported revenue from operations of ₹44.87 crore in FY2024. This rose to ₹57.11 crore in FY2025 and then to ₹71.22 crore in FY2026.
Profit after tax also rose during the same period. PAT stood at ₹5.12 crore in FY2024. It increased to ₹7.99 crore in FY2025 and reached ₹10.22 crore in FY2026.
This means revenue grew at a 25.99% CAGR between FY2024 and FY2026. PAT grew at a much faster 41.35% CAGR during the same period.
The rise in profit is important because it shows that the company did not only increase sales. It also improved its earnings over the same period.
Total equity rose from ₹17.60 crore in FY2024 to ₹25.60 crore in FY2025. It then increased to ₹48.24 crore in FY2026.
Where Will the IPO Money Go?
A major part of the IPO money has a clear purpose.
The company plans to use ₹42.50 crore to set up a new manufacturing facility at Bavla in Ahmedabad. The new plant will make sodium metabisulphite, sodium bisulphite powder and ammonium bisulphite.
The planned facility has a capacity of 78,544 MTPA. This is a major step up from the company’s current capacity and could support a large increase in production.
The remaining net proceeds will go toward general corporate purposes. This includes areas such as brand building, salaries, IT infrastructure and other strategic needs.
The use of funds is therefore focused mainly on business expansion rather than an exit by existing shareholders.
Customer Concentration Is a Key Risk
The strong growth numbers do not mean the company has no risks.
One of the biggest concerns is customer concentration. The top 10 customers account for 71.03% of the company’s revenue.
This means a small group of customers has a large effect on total sales. If one or more major customers reduce orders or move to another supplier, the company’s revenue could face pressure.
Another concern is the lack of long-term contracts with most customers. The company depends mainly on purchase orders and regular business transactions.
This gives customers more flexibility and can make future sales less certain.
Supplier Dependence Also Matters
The company also has high supplier concentration.
The top 10 suppliers account for 97.92% of purchases. This is a very high level of dependence on a limited number of suppliers.
Raw material prices can also affect the business. Material costs form more than 58% of total income, so changes in input prices could affect profit margins.
For a chemical company, stable raw material supply and cost control are important. The new plant can help the company grow, but higher capacity alone will not guarantee higher profit.
What Investors Should Watch After Listing
The huge IPO subscription has created a lot of interest around the stock. However, subscription numbers alone do not tell investors what the company’s shares are worth.
A very high subscription means demand for the IPO shares was strong. It does not mean the business is free from risk.
The company will now have to use the IPO funds well. Investors will want to see how fast the new Bavla facility becomes operational, how much production it adds and whether the company can find new customers for the extra capacity.
Revenue growth and profit growth will also remain important. Investors should also watch customer concentration, supplier dependence and raw material costs.
Allotment and Listing Dates
The IPO closed on September 2, 2026. The basis of allotment is expected on September 3.
Refunds are scheduled to start on September 4, while shares are expected to reach successful applicants on the same day. The tentative listing date is September 7, 2026.
The lot size was 1,600 shares. At the upper price of ₹83, one lot required ₹1,32,800. Investors could apply for a larger number of shares, subject to the SME IPO rules.
Overall View on Shanti Inorganics IPO
Shanti Inorganics has several positive points. Its revenue has grown from ₹44.87 crore in FY2024 to ₹71.22 crore in FY2026. PAT rose from ₹5.12 crore to ₹10.22 crore over the same period.
The company also plans a large capacity expansion through a new 78,544 MTPA facility at Bavla. Most of the IPO proceeds will support this plan.
At the same time, investors need to remain careful. The top 10 customers account for 71.03% of revenue, while the top 10 suppliers account for 97.92% of purchases. The company also has limited long-term customer contracts.
The final subscription of 278.39 times shows strong market interest, especially from QIBs and NIIs. Yet the next test will come after listing. The company’s ability to expand production, add customers and maintain profit growth will matter much more over the long term.
For investors, Shanti Inorganics is therefore a story of strong recent growth and ambitious expansion, but also meaningful concentration risks. The September 7 listing should offer the first clear market view of how investors value that balance.
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