Shanti Inorganics Limited, incorporated in 2010, is a leading Gujarat-based chemical manufacturer specializing in the research, production, and supply of high-grade sulphur-based inorganic chemicals. The company took over the business of its promoters' sole proprietorship and partnership firm, Shanti Industries (established in 2000), systematically transitioning into a corporate manufacturing platform. Operating under a highly specialized B2B business model, the company serves as an essential intermediate supplier of bisulphites and sulphites. These chemicals are utilized globally as antimicrobial agents, preservatives, oxygen scavengers, and reducing agents across multi-billion-dollar downstream industries, ensuring strong repeat business and consistent customer retention.
The company's primary client segments are concentrated in high-volume, highly regulated industrial sectors, with the food and beverages sector contributing the largest share of operations (35.84% of revenue in FY26), followed by the chemicals sector (22.38%), oil drilling (12.82%), and pharmaceuticals (8.11%). Geographically, Shanti Inorganics has built a balanced domestic and international presence, serving key industrial states across India and exporting to overseas markets spanning 15 countries. International exports contributed 42.57% of total revenue in FY26 (reaching Rs 30.03 Crore), serving prominent clients based in Eswatini, Malaysia, the United Arab Emirates, Qatar, and Colombia.
The manufacturing operations of the company are strategically conducted from two integrated facilities located in Gujarat’s industrial corridors. Manufacturing Unit-I (Vatva Unit) is spread across ~1,140 square meters of leased GIDC land in Ahmedabad, possessing an installed manufacturing capacity of 18,800 Metric Tonnes Per Annum (MTPA). Manufacturing Unit-II (Phase I) is situated on owned land admeasuring ~25,813 square meters in Bavla, Ahmedabad, with an installed capacity of 18,000 MTPA to manufacture sodium sulphite anhydrous. Additionally, the company is actively developing Phase II at its Bavla site on adjacent plots spanning ~17,212 square meters to expand its installed capacity by an additional 78,544 MTPA to meet growing global demand.
According to the technical certificates certified by S. K. Patel, an independent chartered engineer, the company achieved outstanding capacity utilization at its main Vatva plant, recording an overall utilization of 92.60% in Fiscal 2026 (producing 17,409 MT against the 18,800 MTPA capacity). The product-wise capacity utilization figures for Unit-I in FY26 stood at 81.56% for sodium metabisulphite (1,305 MT produced), 99.29% for sodium bisulphite solution/powder (8,142 MT produced), and 88.47% for ammonium bisulphite (7,962 MT produced). Meanwhile, the newly commissioned Bavla Unit (Phase I), which commenced commercial operations recently in February 2025, achieved a capacity utilization of 15.01% in FY26 (producing 2,702 MT against the 18,000 MTPA capacity) as its operations continue to scale.
The technical and quality moat of Shanti Inorganics is driven by its internal R&D capabilities, which historically enabled the company to innovate and commercialize sodium bisulphite in its highly stable liquid solution form. Operationally, the company achieved a major efficiency milestone in Fiscal 2019 by transitioning from traditional sulphur-burning furnaces to procuring liquified sulphur dioxide (SO2) raw materials, which significantly improved chemical yields, reduced carbon emissions, and streamlined GPCB environmental compliance. To support international exports, the company’s manufacturing processes are fully certified under rigorous food safety and international quality standards, including NSF (potable water treatment chemicals), Kosher, Halal, HACCP, and ISO 9001:2015.
As per financial performance, Shanti Inorganics Limited has posted total income / net profits of Rs 45.06 Cr / Rs 5.12 Cr (FY24), Rs 58.46 Cr / Rs 7.99 Cr (FY25) and Rs 72.93 Cr / Rs 10.22 Cr (FY26). So as per previous financials data, the company has shown steady top-line growth at a CAGR of 27.23% and stellar bottom-line expansion at a CAGR of 41.35%, while sequentially managing its leverage as total debt stood at Rs 30.67 Cr in FY26 compared to Rs 24.34 Cr in FY24, with its debt-to-equity ratio decreasing from 1.35x to 0.63x. Company has an average EPS of Rs 8.14 and average RoNW of 31.84% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 1.99 as per NAV of Rs 41.74 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.46 (on an expanded post-issue book value of Rs 56.81 per share based on the latest balance sheet). If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 27.98, 17.91, and 14.01 respectively. As per RHP, a comparison between listed peers shows that there are no listed companies in India whose business operations, scale, and product portfolio are directly comparable, rendering direct listed peer group comparisons not applicable.
On BRLM's front, Vivro Financial Services Private Limited is associated with this IPO, and has handled 10 IPOs in the past. From last 10 IPOs, one opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from the last 10 IPOs, four are trading below the issue price and the remaining six are trading above the issue price or at par. (As On 24.08.26)
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