Snehaa Organics Ltd. IPO

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Snehaa Organics Limited operates in the solvent recovery and recycling sector, delivering sustainable solutions for industries that rely on solvents in their processes. The company specializes in collecting spent solvents from diverse industries and processing them using advanced distillation and purification technologies. This ensures solvents are recovered efficiently, even from mixtures with significant batch-to-batch variability.

The company’s business model is two-fold

i. Solvent Recovery & Return – Recovered solvents are supplied back to the original companies for reuse, enhancing resource efficiency and supporting waste reduction initiatives.

ii. Trading of Solvents – Excess purified solvents are marketed and sold openly. Additionally, the company engages in direct solvent trading, wherein it sources raw solvents from suppliers, conducts quality assessments, and distributes them to end-users.

By combining solvent recovery services with trading activities, Snehaa Organics Limited not only promotes circular economy practices but also contributes to cost savings for industries, environmental sustainability, and reduced dependency on virgin raw materials.

Objects of the Snehaa Organics Ltd. IPO:

IPO proposes to utilise the Net Proceeds from the Issue towards the following objects: i. Working Capital Requirement. ii. To Repayment of loans availed by the Company. iii. General Corporate Purposes. iv. Issue expenses.

Snehaa Organics Ltd. IPO Details:

Open Date: Aug 29 2025
Close Date: Sep 02 2025
Total Shares: 26,79,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 32.68 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 115 - 122 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 05 2025

Promoters And Management:

Mr. Nandigala Venkata Sai Harish (27), Founding Promoter and Whole-time Director, holds a BBA (Finance) from Alliance University, Bangalore, with 6+ years of experience in international business, finance, and petrochemicals. He also serves as Director in several group companies including Vestro Solvents and Vedants Petrochem. Mr. Nandigala Venkata Sai Kiran (26), Managing Director and Founding Promoter, holds a B.A. from FLAME University and has 5 years of experience in business operations and production processes. He also serves as Director in group companies including Vestro Solvents, Vedant Agri Foods, Vestro Labs, Vestro Containers, and Vedant Petrochem. Ms. Samitha Reddy Tera (23), Non-Executive Director since January 21, 2025, holds a B.A. from the University of Toronto. She contributes her analytical skills and fresh perspective to support the Company’s strategic growth.

Financials of Snehaa Organics Ltd. IPO:

Particulars FY2024-2025 FY 2023-2024 FY 2022-2023
Revenue from Operations 26.22 23.71 13.65
EBITDA 11.41 5.83 4.16
EBITDA Margins 43.52% 24.58% 30.54%
PAT 7.33 3.65 2.77
PAT Margins 27.98% 15.43% 20.35%
ROCE 50.38% 46.70% 50.33%
Debt to Equity Ratio(In Times) 0.61 0.53 0.95
Operating Cash Flows 3.03 4.56 1.24

Comparison With Peers:

Their is no Listed Peers of the Company according to its RHP.

Recommendation on Snehaa Organics Ltd. IPO:

1. Business Model of Snehaa Organics Ltd a) Snehaa Organics Limited operates in the solvent recovery and recycling industry, with a focus on serving solvent-intensive sectors such as pharmaceuticals, chemicals, and agrochemicals. b) Solvent Recovery & Recycling: Collects, purifies, and recycles hazardous/corrosive solvents using distillation & purification technologies. c) Direct Trading: Sources solvents (e.g., Acetone, MDC, Chloroform) and sells them post-quality assessment in the open market. d) Strategic Shift: Moving from job work–oriented revenue to a purchase-and-process model, wherein the company procures raw solvents directly, processes them, and sells as finished products. This ensures: i) Better control over raw material, ii) Higher operational flexibility, iii) Improved capacity utilization, iv) Stronger margins. e) Product Diversification: Expanding portfolio beyond Acetonitrile & THF into higher-value solvents like Tertiary Butyl Alcohol (TBA/2TB), targeted towards pharma clients. f) Sustainability Focus: Strong alignment with ESG and regulatory push towards hazardous waste minimization & circular economy. 2. Revenue Model The company generates revenues from three streams: a) Sale of Distilled Products – both recycled and directly traded solvents. b) Job Work Charges – fee-based revenue for distilling on behalf of clients. c) Direct Trade Products – purchase and sale of solvents in the open market. d) Additionally, Other Income arises from discounts & interest. 3. Financial Performance 3-Year Revenue CAGR: ~38% (from ₹13.6 Cr in FY23 to ₹26.2 Cr in FY25). Profitability Improving: PAT more than doubled in FY25 vs FY24, margins expanded strongly (~28% vs 15%). The shift towards purchase-and-process model likely boosted margins. 4. Valuation Considerations FY25 PAT = ₹733.82 Lakhs (~₹7.34 Cr). Post-issue Equity Shares = 1,01,79,000 shares. Mcap ( Post-IPO) = ₹125 cr

Lead Manager of Snehaa Organics Ltd. IPO:

  1. Fast Track Finsec Private Limited

Registrar of Snehaa Organics Ltd. IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Snehaa Organics Ltd. Plot No 290 & 291 Dulapally Adjacent to Ida Jeedimetla, Quthbullapur, Rangareddi Quthbullapur, Telangana, 500055 Phone: +91 8309404803 Email: info.snehaapharma@gmail.com Website: https://snehaaorganics.com/

Discussion on Snehaa Organics Ltd. IPO:

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