IPO Announcement and Terms

Shellz India Limited, a confectionery manufacturer operating under the "Hugs" and "Tosca" brands, announced that its Initial Public Offering will open on Thursday, 15 October 2026 on the BSE SME platform. The fresh issue comprises up to 33,50,400 equity shares with a face value of ₹10 each, priced within a band of ₹170 to ₹179 per share. The lot size is set at 1,600 shares, with subsequent multiples of 800 shares. Allocation guidelines stipulate that Qualified Institutional Buyers (including the anchor portion) may receive not more than 50% of the net issue, non‑institutional bidders at least 15%, and individual bidders at least 35%.

The anchor bidding is scheduled for Wednesday, 14 October 2026, the issue will open on 15 October and close on Monday, 19 October 2026. Socradamus Capital Private Limited is the Book Running Lead Manager, Bigshare Services Private Limited serves as the Registrar, and Mansi Share and Stock Broking Private Limited is the Market Maker.

Use of Proceeds

The net proceeds, estimated at up to ₹59.97 crore (the upper price‑band valuation), will be employed to repay or pre‑pay, in whole or in part, certain outstanding borrowings, to fund incremental working‑capital requirements, for general corporate purposes and to meet issue‑related expenses.

Business Overview

Shellz manufactures confectionery products across more than 300 SKUs, covering baked treats, choco delights, jellies, and panned and sugar confectionery. It also produces food and bakery ingredients, undertakes private‑label manufacturing for third parties, and exports to the Middle East, South Asia and Europe. The "Hugs" brand targets the mass‑market segment with most products priced at ₹10 or below, while "Tosca" occupies the mass‑premium segment and is being expanded through e‑commerce and quick‑commerce channels, exemplified by the Tosca Oat Choco product.

All products are produced in‑house at facilities in Delhi and Sonipat, Haryana. The Sonipat plant is being expanded, with installed capacity expected to rise from approximately 17,100 metric tonnes per annum (MTPA) to about 34,500 MTPA, effectively doubling the company's production capability.

Financial Performance

For the full fiscal year 2026, Shellz reported revenue from operations of ₹19,261.52 lakh, EBITDA of ₹3,014.81 lakh and profit after tax (PAT) of ₹1,337.05 lakh. For the three‑month period ended June 2026, the company posted revenue of ₹4,724.10 lakh, EBITDA of ₹852.32 lakh and PAT of ₹407.88 lakh.

Management Commentary

Mr. Kapil Garg, Promoter, Chairman and Managing Director, stated that the IPO will strengthen financial resources and support the scaling of the Sonipat facility, broaden the product portfolio and deepen distribution reach, thereby creating long‑term value through disciplined growth and operational efficiency. Pre‑IPO investor Mr. Neeraj Gupta, Founder of Meru Cabs, highlighted that the listing will fund the next phase of growth. Mr. Priyesh Jain, Director of Socradamus Capital Private Limited, emphasized the company's diverse product portfolio, in‑house manufacturing and established distribution network as foundations for future expansion.

Industry Context

According to the company's Red Herring Prospectus, India's confectionery market was valued at ₹93.1 thousand crore in FY2025 and is projected to reach ₹125.8 thousand crore by FY2030, reflecting a compound annual growth rate (CAGR) of 6.3%. Within this market, baked confectionery is expected to grow from ₹56.2 thousand crore in FY2025 to ₹74.6 thousand crore by FY2030, at a CAGR of 5.8%, driven by rising urban demand for packaged bakery products, on‑the‑go snacking and greater availability through modern retail channels.

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