Shivchem Agro Limited

Shivchem Agro Limited (formerly known as Shivchem Agro Private Limited), incorporated on September 12, 2021, is an ISO 9001:2015, ISO 22000:2018, and ISO 31000:2018 certified agrochemical manufacturing enterprise headquartered in Rohini, Delhi. The company is engaged in the manufacturing, stocking, exhibiting, distribution, and sale of agricultural formulations aimed at providing farmers with crop protection solutions to support agricultural output. Its core business model centers on offering formulations in solid (e.g., powders) and liquid (e.g., emulsifiable concentrates) forms across six principal product categories: insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and fertilizers.

As of the date of the Red Herring Prospectus, Shivchem Agro holds manufacturing licenses under the Insecticides Act, 1968 for 176 agrochemical products (comprising 88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators, and 3 rodenticides) granted by the Central Insecticides Board and Registration Committee (CIBRC) and the Directorate of Plant Protection, Haryana. Additionally, under the Fertilizer Control Order, 1985, the company holds Letters of Authorization to manufacture 82 fertilizer formulations. Overall, its licensed product portfolio expanded from 232 products in FY24 to 258 products in FY25 and FY26. In FY26, herbicides constituted the largest revenue share at 43.53% (₹14.72 Cr), followed by insecticides at 30.32% (₹10.25 Cr), fungicides at 15.86% (₹5.36 Cr), plant growth regulators at 8.07% (₹2.73 Cr), fertilizers at 2.10% (₹0.71 Cr), and rodenticides at 0.13% (₹0.04 Cr).

The company operates a B2B distributor-driven supply model catering to regional agricultural distributors who supply end-user farmers across Indian states. As of March 31, 2026, Shivchem Agro distributes its products across eight states—Andhra Pradesh, Telangana, Assam, Haryana, Odisha, Bihar, West Bengal, and Uttar Pradesh—supported by an active network of 685 distributors (up from 185 in FY24 and 516 in FY25) and a dedicated sales team of 39 employees. To facilitate product delivery and inventory management, the company operates five leased godowns in Andhra Pradesh, Telangana, Odisha, Assam, and Bihar. Customer concentration remains well-distributed, with the top single customer contributing 7.64%, the top 3 contributing 13.80%, the top 5 contributing 18.89%, and the top 10 contributing 28.71% of total operational revenue in FY26.

Shivchem Agro operates a single primary manufacturing facility situated at Killa No. 102 19 1 4-3, Village Jhajjar, Barhana, Haryana, spanning an area of 22,680 sq. ft. The facility is equipped with automated filling and packaging machinery, an Effluent Treatment Plant (ETP) for industrial wastewater management, and a Wet Scrubber Unit for air pollution control. As certified by an independent chartered engineer, the total aggregate installed volume capacity across all categories stands at 65,07,500 kg/litre. The annualized installed capacities and capacity utilization figures for FY26 were as follows:

Insecticides: Installed capacity of 30,00,000 kg/litre | Utilized 7,65,757 kg/litre (25.53% utilization).

Herbicides: Installed capacity of 8,50,000 kg/litre | Utilized 4,87,512 kg/litre (57.35% utilization).

Fungicides: Installed capacity of 2,50,000 kg/litre | Utilized 1,07,027 kg/litre (42.81% utilization).

Plant Growth Regulators: Installed capacity of 15,00,000 kg/litre | Utilized 1,04,960 kg/litre (7.00% utilization).

Rodenticides: Installed capacity of 7,500 kg/litre | Utilized 1,450 kg/litre (19.33% utilization).

Fertilizers: Installed capacity of 9,00,000 kg/litre | Utilized 55,550 kg/litre (6.17% utilization).

Operational initiatives and technical engagement center on direct on-field farmer education and product demonstration campaigns. Shivchem Agro deploys a field demonstration team of 6 employees (including field officers and marketing development officers) to train farmers on appropriate product dosage, safe handling, and application techniques. To extend its technical reach, the company publishes digital demonstration videos and instructional blogs accessible via its website and official YouTube channel (@shivchemagro). Furthermore, raw material procurement is 100% domestic, sourced through spot purchase arrangements for key technical ingredients including Solvent C9, Chlorpyriphos Technical, Paraquat Dichloride Technical, Pretilachlor Technical, and Glyphosate Technical.

Based on its historical financial data, Shivchem Agro Limited posted total income and net profits of ₹10.95 Cr / ₹1.29 Cr in FY24, ₹27.50 Cr / ₹2.60 Cr in FY25, and ₹33.84 Cr / ₹3.25 Cr in FY26. The company has demonstrated consistent top-line and bottom-line growth, with Total Income expanding at a 2-year CAGR of 75.76% and PAT at a 2-year CAGR of 58.46%. Total debt moved from ₹7.10 Cr in FY24 to ₹8.26 Cr in FY25 before moderating to ₹7.28 Cr in FY26, with ₹3.50 Cr earmarked from fresh issue proceeds for debt repayment. It boasts an average EPS of ₹8.50 and an average RoNW of 55.13% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.53 against a NAV of ₹24.50 (as of March 31, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.73. Attributing the latest earnings to the expanded post-issue equity base, the asking price translates to a Post-Issue P/E of approximately 36.05x (FY24), 17.97x (FY25), and 14.39x (FY26). According to the RHP, peer companies trade at an average P/E of 21.52x (ranging from Sikko Industries Limited at 15.21x to Super Crop Safe Limited at 27.83x), placing the company's Post-Issue P/E of 14.39x on FY26 earnings at a reasonable discount to listed peers.

On the Book Running Lead Manager (BRLM) front, the issue is managed by Shannon Advisors Private Limited as the sole Book Running Lead Manager. Maashitla Securities Private Limited is acting as the Registrar to the Offer.

• 1 Rohit Agarwal
• 2 Sachin Agarwal
• 3 Deepa Agarwal