Sheel Biotech Makes Strong Debut with 51.67% Premium, Lists at ₹95.55 Against Exceptional Subscription

Sheel Biotech Limited, the biotechnology company specializing in tissue culture planting materials, greenhouse projects, organic farming services, and FPO management with DBT and DST recognized R&D laboratory, made a strong debut on NSE SME on October 8, 2025. After closing its IPO bidding between September 30-October 3, 2025, the company commenced trading with a 44.44% premium opening at ₹91 and rose to ₹95.55 with gains of 51.67%.

Sheel Biotech Listing Details

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Sheel Biotech Limited launched its IPO at ₹63 per share with a minimum investment of 4,000 shares costing ₹2,52,000. The IPO received exceptional response with a subscription of 15.97 times - individual investors at outstanding 9.56 times, NII at remarkable 25.92 times, and QIB at impressive 19.73 times, indicating strong investor confidence across all categories in the biotechnology and floriculture business.

First-Day Trading Performance Outlook

Listing Price: Sheel Biotech share price opened at ₹91 representing a premium of 44.44% from the issue price of ₹63, and rose to ₹95.55, delivering exceptional gains of 51.67% for investors reflecting positive market sentiment towards agri-biotech sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Service Portfolio: Comprehensive offerings including tissue culture planting materials, greenhouse projects with climate control and automation, organic adoption and certification services, FPO management, and skill development programs for farmers and agripreneurs.
• Strong Credentials: ISO 9001:2015, 14001:2015, and 45001:2018 certifications, DBT and DST recognized R&D laboratory, workforce of 160 permanent employees, and eco-friendly sustainable farming practices across agriculture, floriculture, and horticulture.
• Steady Financial Performance: Consistent PAT growth of 2% to ₹10.64 crore and revenue growth of 11% to ₹102.27 crore in FY25, moderate ROE of 13.59%, moderate ROCE of 16.34%, low debt-to-equity ratio of 0.21, and healthy margins.

Challenges:

• Modest Growth Momentum: Relatively modest PAT growth of just 2% despite 11% revenue growth in FY25 indicating profitability challenges and margin pressures in highly fragmented agri-biotech segment.
• Full Valuation Post-Listing: Post-issue P/E of 12.06x appearing fully priced despite exceptional listing gain of 51.67%, operating in highly fragmented segment requiring continuous innovation and differentiation.
• Limited Scale Operations: Revenue of ₹102.27 crore indicating relatively small operational scale requiring significant scaling to maintain growth momentum and justify premium valuation in competitive agri-biotech market.

Utilisation of IPO Proceeds

• Capital Expenditure: ₹9.12 crore for capital expenditure requirements enhancing infrastructure, technology capabilities, and operational efficiency in biotechnology and floriculture operations.
• Working Capital Requirements: ₹15.88 crore for working capital requirements supporting project execution, inventory management, and operational scale-up in greenhouse projects and tissue culture production.
• General Corporate Purposes: Supporting business operations and strategic initiatives for sustained growth in agri-biotech sector.

Financial Performance of Sheel Biotech

• Revenue: ₹102.27 crore for FY25, showing steady growth of 11% from ₹92.55 crore in FY24, reflecting consistent market demand for biotechnology and greenhouse services.
• Net Profit: ₹10.64 crore in FY25, representing modest growth of 2% from ₹10.47 crore in FY24, indicating profitability challenges despite revenue growth in agri-biotech business.
• Financial Metrics: Moderate ROE of 13.59%, moderate ROCE of 16.34%, low debt-to-equity ratio of 0.21, healthy PAT margin of 10.45%, solid EBITDA margin of 14.71%, conservative price-to-book value of 1.11, and estimated market capitalisation of ₹194.47 crore.