Shubhshree Biofuels Energy Limited IPO

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The Company specializes in supplying biomass fuels, including biomass pellets and briquettes, which serve as alternative energy sources to traditional fossil fuels like coal, firewood, and lignite. These biomass fuels are primarily used in commercial and industrial heating, cooking, industrial burning, and electricity generation. Specifically, briquettes are used for industrial applications such as running boilers, while pellets are more commonly used as cooking fuel and for other commercial purposes.

Their customer base spans various industries, including recycling, textile processing, pharmaceuticals, and metal production. The biomass pellets and briquettes they produce are made from recycled green waste, resulting in lower greenhouse gas emissions. Key raw materials include agricultural waste, sawdust, and farm waste, sourced directly from farmers or through dealers.

Initially incorporated in 2013, their company focused on manufacturing and supplying building materials like fly ash bricks. In December 2021, they shifted their focus to the biomass fuel business, recognizing the market potential and environmental benefits. To support this transition, they established a manufacturing facility in Tonk, Rajasthan, in October 2023, equipped with three briquetting and pelleting machines, with a combined capacity of 132 tonnes per day.

Biomass fuels are a renewable energy source that reduces emissions, efficiently utilizes waste materials, and offers a sustainable alternative to traditional fossil fuels. Their company is committed to leveraging these advantages to address energy and environmental challenges while continuing to expand their market presence.

Objects of the Shubhshree Biofuels Energy Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objects: i. Funding Capital Expenditure towards the installation of additional plant and machinery; ii. To meet working capital requirements; and iii. General Corporate Purpose.

Shubhshree Biofuels Energy Limited IPO Details:

Open Date: Sep 09 2024
Close Date: Sep 11 2024
Total Shares: 1,392,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 16.56 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 113 - 119 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 16 2024

Promoters And Management:

Sagar Agrawal is the Chairman & Managing Director of the Company. He is also one of the promotors of the company. He has been associated with the Company since October 31, 2023 . He has completed his Bachelor of Commerce in the year 2012 from the University of Rajasthan . He has a work experience of around 10 years in the Biomass and Biofuels Industry. He primarily looks after the overall biomass manufacturing, Financial Management and resource allocation etc. Anurag Agarwal is one of the Promoter, Whole Time Director of the Company. He has been associated with the Company since incorporation. He has completed his Bachelor of Commerce in the year 2012 from the Rajasthan University. He has a work experience of over 9 years out of which 6 year experience of bricks manufacturing and 2.5 Year experience of Biomass Manufacturing. He primarily looks after the overall biomass manufacturing. Aastha Agarwal is the Promoter and Non-Executive Director of the Company. She has completed her Post Graduate diploma in Management in the year 2014 from Jagan Institute of Management Studies, Delhi, India. She has over 3 years of experience in Digital Marketing Industry.

Financials of Shubhshree Biofuels Energy Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 792 5,862 9,415
Other Income 0.01 110 74
Total Revenue 792 5,971 9,488
Cost of Material Consumed 0 0 225
Purchase of Stock in trade 669 4,812 7,481
Changes in inventories 5 0 -62
Employees Benefit Expenses 11 46 47
Other Expenses 73 777 1,300
EBITDA 34 336 497
OPM (%) 4.32% 5.63% 5.24%
Depreciation & Amortisation 2 7 13
EBIT 32 329 484
Finance Cost 0.01 5 22
PBT 32 324 462
Tax 4 82 132
PAT 27 242 330
NPM (%) 3.47% 4.06% 3.48%
No.of Shares 52.42 52.42 52.42
EPS 0.52 4.62 6.29

Comparison With Peers:

Note :- There are no listed companies in India that are engaged in a business similar to this company

Recommendation on Shubhshree Biofuels Energy Limited IPO:

1. Shubhshree Biofuels Energy Limited engaged in manufacturing and supplying building and construction materials, such as fly ash bricks. They transitioned into the biomass fuel industry, focusing on the manufacturing and supplying of biomass pellets and briquettes. 2. These products serve as alternative energy sources for industrial and commercial heating, cooking fuel, industrial burning, and electricity generation, providing an eco-friendly substitute for fossil fuels like coal, firewood, lignite, and agricultural waste. 3. Product and Market Focus Their biomass pellets and briquettes are made from recycled green waste, significantly reducing greenhouse gas emissions.These products are supplied to industries involved in recycling, textile processing, pharmaceuticals, and metal processing. The pellets are primarily used as cooking fuel or for commercial purposes, while the briquettes are used mainly in industrial boilers. 4. Customer Base and Sales Distribution They primarily sell their products in Northern India, with Haryana, Uttar Pradesh, Rajasthan, and the NCR region being key markets. 5. Competition The biomass fuel industry is unique and globally competitive, with a fragmented landscape comprising many small and medium-sized companies. They face competition from both domestic and international players across all their geographic markets. 6. The Revenue has Increased from Rs.8 Crores in FY22 to Rs.94 Crores in FY24. 7. The EBITDA has Increased from 34 Lakhs in FY22 to 5 Crores in FY24. 8. The PAT has Increased from 27 Lakhs in FY22 to 3 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.98, and EPS is 6.29, 10. Market Capitalization is 62 Crores and P/E is 18.9x based on FY24.

Lead Manager of Shubhshree Biofuels Energy Limited IPO:

  1. Hem Securities Limited

Registrar of Shubhshree Biofuels Energy Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Shubhshree Biofuels Energy Limited Plot No. 8 Ganesh Vihar B, Pandit T.N Mishra Marg, Nirman Nagar, Shyam Nagar (Jaipur), Jaipur - 302019 Phone: +91 9799998880 Email: shubhshree@biomassfuel.co.in Website: http://www.shubhshreebiofuels.co.in/

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