Shellz India has set a price band of Rs 170-179 per share for its upcoming initial public offering. The confectionery maker aims to raise Rs 60 crore through a fresh issue of shares, with subscription scheduled from October 15 to October 19, 2026. Proceeds will primarily support debt repayment and working capital requirements.
Delhi-based confectionery manufacturer Shellz India is set to launch its initial public offering on October 15, 2026, targeting a total capital raise of approximately Rs 60 crore. The company has finalized its price band at Rs 170 to Rs 179 per equity share. Potential investors can subscribe to the issue until October 19, 2026, with the shares slated for listing on the BSE SME platform on October 23, 2026.
The IPO consists entirely of a fresh issue of 3.35 million shares. The company intends to direct the net proceeds toward improving its balance sheet and supporting day-to-day operations. Specifically, Rs 22 crore is earmarked for the repayment of existing borrowings, while Rs 23 crore will be deployed to meet incremental working capital needs. The remaining funds are allocated for general corporate purposes.
Shellz India manufactures a variety of confectionery items, including chocolates, jellies, and baked treats, sold under brand names such as Hugs and Tosca. Financial disclosures indicate that the company reported a net profit of Rs 13.37 crore for the financial year ended March 2026, with revenue totaling Rs 192.6 crore. In the subsequent quarter covering April to June 2026, the company recorded a profit of Rs 4.1 crore on revenue of Rs 47.2 crore.
While the company seeks to expand its operations, prospective investors should consider several risk factors highlighted in its regulatory filings. The company carries a high level of debt, which affects its financial stability and restricts its operational flexibility. Credit records also reveal a history of delayed repayment of borrowings, which is a significant factor for investors to monitor regarding the company's financial discipline.
Beyond debt concerns, the company faces operational challenges. The confectionery industry in India is highly competitive, and the business relies heavily on shifting consumer preferences. Additionally, there are outstanding legal proceedings involving the company, its promoters, and directors, the outcomes of which could influence future operations. As the company operates in a sector with many unorganized players, maintaining consistent profit margins remains a key challenge. Investors may wish to track the success of the company's debt reduction plans and its ability to manage working capital effectively once the issue is listed.