Shellz India will open its Rs 59.97 crore IPO on October 15, 2026, with a price band of Rs 170–179 per share. The company plans to use the funds to pay off debt and support working capital. Investors should weigh the firm’s recent revenue growth against its high debt levels and negative operating cash flows.
Shellz India Limited, known for its confectionery brands like 'Hugs' and 'Tosca', is set to launch its initial public offering on the BSE SME platform. The IPO will open for subscription on October 15, 2026, and close on October 19, 2026. The company has set a price band of Rs 170 to Rs 179 per equity share, with a lot size of 800 shares.
The public issue aims to raise approximately Rs 59.97 crore through a fresh issue of 3,350,400 shares. The company plans to use the proceeds primarily to strengthen its balance sheet. Specifically, it intends to allocate Rs 22 crore toward the repayment of outstanding borrowings and Rs 23 crore to support incremental working capital requirements. The remainder of the funds will be used for general corporate purposes.
Financial Performance and Growth
The company has demonstrated growth in its core confectionery business. For the fiscal year ending March 31, 2026, Shellz India reported revenue from operations of Rs 192.62 crore and a profit after tax of Rs 13.37 crore. The growth momentum persisted into the first quarter of the current financial year, with the company recording revenue of Rs 47.24 crore and a profit of Rs 4.08 crore for the period ending June 2026.
Risks and Financial Health
While the company has reported profit growth, investors may want to examine several financial and operational risks highlighted in the company's disclosures. A primary concern is the company's high debt load, as indicated by a debt-to-equity ratio of 1.71. Additionally, despite recording profits, the company reported negative operating cash flows of Rs 11.31 crore in FY 2026, which suggests that its profits have not yet translated into cash.
Furthermore, the company has flagged issues related to contingent liabilities, which increased to Rs 24.67 crore as of March 31, 2026, largely due to disputed statutory tax demands. The company has also disclosed instances of mismatches between the stock and debtor statements submitted to its lenders and the data recorded in its internal accounting books.
Investors may want to monitor how the company manages these documentation discrepancies and whether the capital raised from this IPO helps the business improve its cash flow position and reduce its dependence on debt. The listing of the shares on the BSE SME platform is scheduled for October 23, 2026.