Now Reading: Shellz India to raise Rs 60 crore via IPO on BSE SME
-
01
Shellz India to raise Rs 60 crore via IPO on BSE SME
Shellz India, the maker of confectionery brands ‘Hugs’ and ‘Tosca’, plans to raise Rs 60 crore through an initial public offering on the BSE SME platform. The company will issue 33.50 lakh equity shares in the price band of Rs 170 to 179 each, with subscriptions opening on October 15.
Net proceeds will repay outstanding borrowings, fund working capital needs, and cover general corporate expenses. Socradamus Capital is the book-running lead manager, Bigshare Services is the registrar. Shellz manufactures over 300 product varieties including baked treats, chocolates and jellies, and expects to more than double its installed capacity at its Sonipat facility from about 17,100 MTPA to 34,500 MTPA. Chairman Kapil Garg said the IPO will strengthen financial resources for expansion, while pre-IPO investor Neeraj Gupta of Meru Cabs said the listing should help fund the next growth phase.
Indian Opinion Analysis
Internal accruals alone may not have been enough to double capacity at Sonipat, making the IPO a necessary move for Shellz to scale without overloading its balance sheet. The Rs 60 crore will first clear outstanding debt, freeing cash flow, before funding the working capital that a larger plant demands. Whether the market subscribes at the upper end of the price band depends on how investors weigh the company's reach in mass-market confectionery against the execution risk of nearly doubling output. The subscription window closes on October 17, which will be the first test of demand.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
