Shellz India makes confectionery under the Hugs and Tosca brands (300+ SKUs) and supplies food and bakery ingredients, selling through a super-stockist distribution network. The promoters are Kapil Garg and Shalini Garg.
This is a BSE SME issue: a ₹59.97 crore fresh issue of 33.5 lakh shares. Individual investors must apply for at least 2 lots (1,600 shares, ₹2,86,400 at the upper band). Mansi Share & Stock Broking is the market maker, and the company raised ₹16.20 crore from anchor investors.
Objects of the issue
- Repayment of borrowings
- Incremental working capital
- General corporate purposes
Key numbers
- Market cap at upper band: about ₹216 crore
- Valuation: about 11.7x FY26 earnings (13.2x post-issue); price-to-book about 2.5x
- Borrowings: ₹100.83 crore at March 2026, ₹108.56 crore at June 2026 (about 1.7x net worth)
- Promoter holding: 88.11% pre-issue → 63.64% post-issue
Strengths
- Lowest valuation in this IPO batch on earnings and book value
- Profit up about 2.5x in two years (₹5.25 crore → ₹13.37 crore) as margins improved
- All money raised goes into the business
Risks
- SME risks: a ₹2.86 lakh minimum ticket, thin trading after listing and lot-sized exits
- Revenue grew only about 3% in FY26, so the profit jump came from margins, not volume
- Debt is high relative to net worth, and promoters are diluting heavily
- Subscription was below 1x by the end of day 2, and GMP trackers disagree (₹25 on Investorgain, ₹0 on IPO Watch)
Financials are restated figures in ₹ crore; "Revenue" is total income. Subscription figures are as of the end of day 2 (16 October, about 5 PM); bidding closes on Monday 19 October. Grey market premium is unofficial and changes quickly.
