Shellz India IPO
Shellz India IPO Details
-
Open Date
15 Oct 2026
-
Close Date
19 Oct 2026
- IPO Price Range
₹ 170 to ₹179
- IPO Size
₹ 59.97 Cr
Shellz India IPO Timeline
Last Updated: 13 October 2026 6:45 PM by 5paisa
Shellz India Limited is a Delhi-based confectionery manufacturer operating primarily in the affordable, mass-market segment. The company manufactures and markets chocolates, baked confectionery, jellies, puddings, compressed sugar candies and panned confectionery products. Its product portfolio includes items sold at affordable price points, particularly ₹1, ₹2, ₹5 and ₹10, catering to everyday consumption and impulse purchases.
The company markets products under brands including Hugs and Tosca. Its offerings include chocolate-based treats, confectionery sticks, flavoured jellies, puddings, sugar-coated chocolates and baked snacks. Shellz India follows a distributor-led business model, supplying products through super stockists, distributors, wholesalers, general trade outlets, modern retail and other distribution channels. Its business also includes e-commerce and private-label opportunities.
Shellz India has been expanding its manufacturing capabilities, including the development of a facility at Sonipat, Haryana. The company intends to shift manufacturing operations from Delhi to Sonipat to support production capacity, operating efficiency and future business requirements. Its manufacturing and distribution operations are focused on serving the Indian confectionery market, with opportunities to expand across product categories and sales channels.
Established in: 2012
Chairman and Managing Director: Kapil Garg
Peers:
- Annapurna Swadisht Limited
Shellz India Objectives
The company proposes to utilise the net proceeds of the IPO towards:
1. Repayment or prepayment, in full or in part, of certain outstanding borrowings.
2. Funding incremental working capital requirements.
3. General corporate purposes.
4. Meeting issue-related expenses.
The company has earmarked approximately ₹22.00 crore for repayment or prepayment of borrowings and ₹23.00 crore for incremental working capital requirements.
The working capital allocation is intended to support manufacturing and distribution expansion, procurement of raw materials and packaging, inventory requirements and operational needs associated with scaling production.
Shellz India IPO Size
| Types | Size |
|---|---|
| Total IPO Size | ₹59.97 Cr |
| Offer For Sale | – |
| Fresh Issue | ₹59.97 Cr |
Shellz India IPO Lot Size
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Individual Investors (IND) (Min) | 2 | 1600 | 272000 |
| Individual Investors (IND) (Max) | 2 | 1600 | 286400 |
| HNI (Min) | 3 | 2400 | 408000 |
| S-HNI (Max) | 6 | 4800 | 859200 |
| B-HNI (Min) | 7 | 5600 | 952000 |
| Particulars (In ₹ Crores) | FY24 | FY25 | FY26 |
| Revenue | 162.41 | 186.97 | 192.62 |
| EBITDA | 18.94 | 22.79 | 30.15 |
| PAT | 5.25 | 8.30 | 13.37 |
| Particulars (In ₹ Crores) | FY24 | FY25 | FY26 |
| Total Assets | 147.04 | 167.36 | 213.72 |
| Share Capital | 0.64 | 0.69 | 8.72 |
| Total Liabilities | 120.04 | 126.78 | 154.77 |
| Particulars (In ₹ Crores) | FY24 | FY25 | FY26 |
| Net Cash Generated From / (Used In) Operating Activities | 8.37 | 22.11 | -11.31 |
| Net Cash Generated From / (Used In) Investing Activities | -3.93 | -30.53 | -7.02 |
| Net Cash Generated From / (Used In) Financing Activities | -2.90 | 6.73 | 19.45 |
| Net Increase / (Decrease) In Cash And Cash Equivalents | 1.53 | -1.69 | 1.12 |
Strengths
1. Diversified confectionery portfolio: Shellz India offers more than 300 SKUs across chocolate-based confectionery, jellies, baked treats, sugar candies and other products, reducing dependence on a single product category.
2. Established consumer brands: Its Hugs and Tosca brands operate across affordable confectionery categories, particularly products priced between ₹1 and ₹10.
3. Extensive distribution model: The company serves urban, semi-urban and smaller markets through distributors, wholesalers, modern trade and other sales channels.
4. Improving profitability: EBITDA increased from ₹18.94 crore in FY24 to ₹30.15 crore in FY26, with the EBITDA margin improving to 15.65%.
5. Manufacturing expansion: The company's Sonipat facility is intended to support production capacity, operational efficiency and future product development.
Weaknesses
1. Working capital intensity: Inventory days increased from 126 in FY24 to 175 in FY26, indicating longer inventory holding periods and greater funds tied up in stock.
2. Negative operating cash flow: Operating cash flow was negative ₹11.31 crore in FY26 despite the company reporting a PAT of ₹13.37 crore.
3. Borrowing dependence: The company reported a debt-equity ratio of 1.71 times in FY26, reflecting reliance on external financing.
4. Receivables and inventory exposure: A distributor-led sales model requires significant investment in working capital and exposes the company to collection delays.
5. Manufacturing transition risks: The proposed shift of manufacturing activities to Sonipat could involve execution challenges, additional costs and temporary disruptions.
Opportunities
1. Growth in affordable confectionery: Demand for low-unit-price packaged sweets, chocolates and candies provides opportunities to increase sales volumes across smaller towns and rural markets.
2. Manufacturing capacity expansion: The Sonipat facility could enable Shellz India to scale production and introduce additional products.
3. Wider distribution penetration: Expansion through general trade, modern retail, e-commerce and private labelling could support access to new customers.
4. Product portfolio development: The company can introduce new flavours, product formats, packaging sizes and seasonal offerings under its existing brands.
5. Industry formalisation: A shift towards branded and packaged confectionery products could benefit organised manufacturers with established distribution networks.
Threats
1. Competition from established brands: Shellz India competes with domestic and multinational confectionery manufacturers possessing larger advertising budgets, distribution networks and brand portfolios.
2. Raw material price volatility: Changes in the prices of sugar, cocoa, flour, edible oils and packaging materials could affect production costs and operating margins.
3. Food safety regulations: Changes in FSSAI requirements, packaging standards or food labelling regulations may increase compliance costs.
4. Consumer preference changes: Increasing awareness of sugar consumption and changing preferences for healthier snacks may influence demand for conventional confectionery products.
5. Working capital and execution risks: Higher inventory requirements, delayed collections or disruptions during manufacturing expansion could affect cash flow and profitability.
1. Exposure to affordable confectionery: Shellz India operates in India's mass-market confectionery segment, with products catering to price-sensitive consumers across urban, semi-urban and rural markets.
2. Improving earnings: PAT increased from ₹5.25 crore in FY24 to ₹13.37 crore in FY26, while EBITDA margins improved over the same period.
3. Diversified product range: The company manufactures more than 300 SKUs across confectionery categories, supporting multiple price points and consumer preferences.
4. Manufacturing and distribution expansion: Its Sonipat manufacturing development and distribution strategy provide a basis for scaling production and extending market reach.
5. Debt reduction and working capital funding: The IPO proposes to allocate ₹22 crore towards repayment or prepayment of borrowings and ₹23 crore towards incremental working capital requirements.
India's confectionery market was valued at approximately ₹93,100 crore in FY25, according to the Ken Research industry report included in the company's RHP. The market is projected to reach approximately ₹1,25,800 crore by FY30, representing a CAGR of 6.3% between FY25 and FY30.
The economy confectionery segment, comprising products generally priced between ₹1 and ₹10, was valued at approximately ₹50,500 crore in FY25. This segment is projected to reach ₹76,400 crore by FY30, supported by demand for affordable packaged treats and distribution expansion across smaller towns and rural markets.
The industry continues to benefit from rising disposable incomes, increasing organised retail penetration, improved availability of branded products and demand for convenient, single-serve confectionery formats. At the same time, established domestic and multinational manufacturers compete aggressively on product innovation, pricing and distribution.
Shellz India operates within this market through its Hugs and Tosca brands, offering products across affordable chocolate confectionery, jellies, puddings and baked treats. Its planned manufacturing expansion and wider distribution network could support additional production volumes and new product introductions.
However, future growth will depend on manufacturing efficiency, competitive pricing, product demand and the company's ability to manage working capital requirements.
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FAQs
Shellz India IPO opens on 15 October 2026 and closes on 19 October 2026.
The Shellz India IPO comprises a fresh issue of up to 33,50,400 equity shares, aggregating to approximately ₹59.97 crore at the upper price band of ₹179 per share.
The price band of Shellz India IPO has been fixed at ₹170 to ₹179 per equity share, with a face value of ₹10 each.
To apply for the Shellz India IPO:
1. Log in to your 5paisa demat account and select the issue in the current IPO section.
2. Enter the number of lots and the price at which you wish to apply for the Shellz India IPO.
3. Enter your UPI ID and click on submit. Your bid will then be placed with the exchange.
4. You will receive a mandate notification in your UPI app to authorise the blocking of funds.
The IPO bid lot consists of 800 equity shares. The minimum application for individual investors is two lots, equivalent to 1,600 shares.
At the floor price of ₹170 per share, the minimum application amount is ₹2,72,000.
The basis of allotment for the Shellz India IPO is expected to be finalised on 21 October 2026.
The Shellz India IPO is tentatively scheduled to list on the BSE SME platform on 23 October 2026, subject to completion of the allotment and listing process.
Socradamus Capital Private Limited is the book-running lead manager for the Shellz India IPO.
The net proceeds from the Shellz India IPO are proposed to be utilised for:
1. Repayment or prepayment of certain outstanding borrowings, amounting to approximately ₹22 crore.
2. Funding incremental working capital requirements, amounting to approximately ₹23 crore.
3. General corporate purposes.
The company will also meet issue-related expenses from the gross issue proceeds.