Sheetal Universal Limited, an agricultural product processor and exporter, is going public with its initial public offering (IPO) on December 4, 2023. The company plans to raise approximately Rs. 23.80 crores from the issue and aims to be listed on NSE Emerge. In this blog, we will answer some frequently asked questions (FAQs) about the Sheetal Universal IPO and help you decide whether you should invest in it or not.
What is Sheetal Universal Limited?
Sheetal Universal Limited is a company that sources, processes, and supplies agricultural commodities like peanuts, sesame seeds, spices, and grains to cater to the manufacturers of peanut butter, biscuits, cakes, chocolate, and food products. The company was incorporated in 2015 and has its manufacturing and processing facility situated in Jamnagar, Gujarat. The company is accredited with ISO 22000:2018 and HALAL certifications for the processing of groundnut, groundnut kernels, sesame seeds, and whole and ground spices. The company also owns two subsidiaries, Saumesvar International Private Limited and Svar Industries Private Limited, which are engaged in the same business. The company’s clientele includes customers from the Russian Federation, Indonesia, Malaysia, Vietnam, UAE, Iran, Algeria, Israel, Turkey, and Egypt. The company was recognized as a Category One Star Export House Exporter by the Ministry of Commerce and Industry due to its performance in exports.
What are the objectives of the Sheetal Universal IPO?
The company has stated the following objectives for the Sheetal Universal IPO:
- Funding capital expenditure
- Working capital requirement
- General corporate purpose
- To meet public issue expenses
What are the details of the Sheetal Universal IPO?
The Sheetal Universal IPO is a fixed price issue of Rs. 23.80 crores, which is entirely a fresh issue of 34 lakh equity shares. There is no offer for sale (OFS) component. The Sheetal Universal IPO price band is fixed at Rs. 70 per share. The face value of each share is Rs. 10. The minimum lot size for an application is 2000 shares. The retail quota and the non-institutional investor (NII) quota are both 50% of the net offer. The market maker for the Sheetal Universal IPO is Spread X Securities. The book running lead manager of the Sheetal Universal IPO is Beeline Capital Advisors Pvt Ltd, while the registrar for the issue is Bigshare Services Pvt Ltd.
What is the timeline of the Sheetal Universal IPO?
The Sheetal Universal IPO will open on December 4, 2023, and close on December 6, 2023. The basis of allotment will be finalized on December 7, 2023. The initiation of refunds and the credit of shares to demat accounts will be done on December 8, 2023. The listing date of the Sheetal Universal IPO is expected to be December 11, 2023. The cut-off time for UPI mandate confirmation is 5 PM on December 6, 2023.
How to apply for the Sheetal Universal IPO?
You can apply for the Sheetal Universal IPO online through your demat account or through any of the online platforms that offer IPO services. You will need to enter your details, select the number of lots you want to apply for, and make the payment through UPI or ASBA. You will also need to verify your UPI mandate before the cut-off time. You can check the status of your application on the website of the registrar or on the NSE website.
What are the risks and challenges of investing in the Sheetal Universal IPO?
Like any other IPO, investing in the Sheetal Universal IPO involves certain risks and challenges that you should be aware of before making your decision. Some of the risks and challenges are:
- The company operates in a highly competitive and fragmented industry, which may affect its profitability and growth prospects.
- The company depends on a few major customers for a significant portion of its revenue, which may expose it to customer concentration risk and loss of business.
- The company is subject to various laws and regulations related to food safety, quality, and export, which may increase its compliance costs and liabilities.
- The company’s business is dependent on the availability and prices of raw materials, which may fluctuate due to various factors beyond its control.
- The company’s performance may be adversely affected by natural calamities, pandemics, political instability, or other unforeseen events that may disrupt its operations or supply chain.
- The company has not paid any dividends in the past and may not pay any dividends in the future, which may limit the returns for the investors.
- The company has a limited operating history and financial track record, which may not be indicative of its future performance or potential.
- The company may face litigation or disputes from its customers, suppliers, employees, or authorities, which may harm its reputation and financial condition.
- The company may not be able to successfully implement its growth strategies or achieve its projected financial results, which may affect its valuation and market price.
What are the strengths and opportunities of investing in the Sheetal Universal IPO?
Despite the risks and challenges, investing in the Sheetal Universal IPO may also offer some strengths and opportunities that you should consider before making your decision. Some of the strengths and opportunities are:
- The company has a diversified product portfolio and a wide customer base across various geographies, which may enhance its revenue and market share.
- The company has a state-of-the-art manufacturing and processing facility with quality certifications and accreditations, which may enable it to deliver high-quality products and services to its customers.
- The company has a strong management team and experienced promoters with domain expertise and industry knowledge, which may provide it with a competitive edge and strategic guidance.
- The company plans to expand its product range and enter new segments such as vegan foods, which may create new avenues for growth and innovation.
- The company may benefit from the increasing demand for agricultural commodities and processed foods in the domestic and international markets, which may be driven by factors such as population growth, urbanization, changing lifestyles, and rising disposable incomes.
- The company may leverage its existing relationships and network with its customers, suppliers, and distributors, which may help it to enhance its customer retention and loyalty, reduce its operational costs, and increase its market penetration.
Should you invest in the Sheetal Universal IPO?
The final decision of whether to invest in the Sheetal Universal IPO or not depends on your risk appetite, investment objectives, and financial goals. You should also do your own research and analysis of the company’s business, financials, valuation, and growth prospects before making your decision. You should also consult your financial advisor or a qualified professional if you have any doubts or queries regarding the Sheetal Universal IPO.
IPO for Sheetal Universal is scheduled for December 4, 2023, and will close on December 6, 2023. A public offering of the company is intended to raise Rs. 23.80 crores from the primary market. The company set a price band of Rs. 70 for a minimum lot of 2000 shares and listed on December 11, according to preliminary documents filed with SEBI, the capital market regulator.
Sheetal Universal IPO Review & Rating
| Issue Size (Rs.) | 23.80 crore |
| Issue Price (Rs.) | 70 per share |
| Minimum Lot Size | 2000 shares |
| Total Profit (March 2023) (Rs.) | 1.98 crore |
| RoNW (%) | 30.63 |
| NAV (Rs.) | 8.37 |
| Listing on | NSE Emerge |
| IPO Deliver Rating | Four |
Sheetal Universal IPO Dates, Price Band & Details
Sheetal Universal IPO will open on December 04, 2023, and close on December 06, 2023. The IPO list on December 11,
| Type of issue | Fixed Price Issue IPO |
| Issue Size (Rs.) | 23.80 crore |
| Face Value (Rs.) | 10/- per share |
| IPO Open Date | December 04, 2023 |
| IPO Close Date | December 06, 2023 |
| IPO Allotment Date | December 07, 2023 |
| Refund Date | December 08, 2023 |
| Share Credit Date | December 08, 2023 |
| Listing Date | December 11, 2023 |
Sheetal Universal IPO Offer
Sheetal Universal IPO’s total issue size is 34,00,000 shares which comprise the below-mentioned categories.
| Offer Category | Shares Offer | Amount (Rs.) |
| Fresh Issue | 34,00,000 | 23.80 crore |
| Offer for Sale (OFS) | – | – |
Sheetal Universal Financials Review
Below is a summary of the company’s financial information for the years ending March 31, 2023, 2022, and 2021.
| Category (Rs.) | March 31, 2023 | March 31, 2022 | March 31, 2021 |
| Total Revenue | 12,881.22 | 3,868.77 | 3,763.64 |
| Net Worth | 649.22 | 450.37 | 422.07 |
| Profit | 198.86 | 28.32 | 25.41 |
| Borrowings | 1,356.24 | 984.80 | 625.07 |
Sheetal Universal IPO Quantitative Factors
The following table sets forth the summary of financial information of the company for the financial year ending March 31, 2023, 2022, and 2021.
| Category | March 31, 2023 | March 31, 2022 | March 31, 2021 |
| EPS (Rs.) | 2.56 | 0.36 | 0.33 |
| RoNW (%) | 30.63 | 6.28 | 6.03 |
| NAV (Rs.) | 8.37 | 5.81 | 5.44 |
Sheetal Universal Company Promoters
As per the DRHP and RHP, the company has two promoters.
| Serial No. | Name |
| 01. | Hiren Vallabahbai Patel |
| 02. | Kajal Hiren Patel |
Sheetal Universal Pre-offer and Post-Offer Promoters Shareholding
| Promoter and promoter group Shareholding | Percentage (%) |
| Pre-Issue | 95 |
| Post- Issue | – |
Sheetal Universal IPO Reservation
Sheetal Universal IPO total reservation shares are distributed between the below-mentioned categories.
| Category | No. of Shares |
| RII Share Offered | Not more than 50% of the issue size |
| Others Share Offered | Not more than 50% of the issue size |
Sheetal Universal IPO – Market Lot Size
An individual investor can apply for a minimum of 1 lot of 2000 Shares and a maximum of 1 lot of 2000 shares. Market lot sizes for retail investors are as follows:
| Application | Lot Size | No. of Shares | Amount (Rs.) |
| Retail Minimum | 01 | 2000 | 1,40,000 |
| Retail Maximum | 01 | 2000 | 1,40,000 |
Sheetal Universal IPO – Prospectus
An investor can download/view the Sheetal Universal prospectus copy, which was filed by the company to SEBI, details are as follows.
| Sheetal Universal IPO Prospectus | Download/View Links |
| Draft Red Herring Prospectus (DRHP) | Click here |
| Red Herring Prospectus (RHP) | Click here |
Sheetal Universal IPO Registrar
Bigshare Services Private Limited
Tel No.: +91-022-62638200
E-Mail: ipo@bigshareonline.com
Website: www.bigshareonline.com
Sheetal Universal IPO lead manager
Beeline Capital Advisors Private Limited
Tel No.: +91-79 49185784
E-Mail: mb@beelinemb.com
Website: www.beelinemb.com
Sheetal Universal IPO Application (How to Apply for an IPO)
There are primary four options for applying for a Sheetal Universal IPO, details are as follows:
Option-1 Apply for IPO through Internet Banking
Step-1. Log into your bank account.
Step-2. In the invest Tab, you will see ASBA, click on it.
Step-3. Choose to apply for IPO and select the ongoing IPO “Sheetal Universal Limited”
Step-4. Enter the basic details like bid quantity, price, PAN, etc. then proceed with payment.
Step-5. After the above steps, the respective amount will get blocked till the allotment date, and after it will get a refund/debited in case of rejection/allotment respectively.
Option-2 Apply for IPO through a Broker firm
Step-1. Log into your broker account (e.g. Upstox/Zerodha etc.)
Step-2. Click on the IPO tab and select the ongoing IPO “Sheetal Universal Limited”
Step-3. Enter the basic details like bid quantity, price, PAN, etc. then enter UPI ID and proceed with payment.
Step-4. Your funds will get blocked, and once shares have been allotted to you, the respective amount will get debited from your account or refunded in case no allotment is made to you.
Option-3 Apply for IPO Offline Mode Bank mode
Step-1. Visit the nearest branch of your bank.
Step-2. Fill out the ASBA form and submit it with KYC details.
Step-3. Your funds will get blocked, and once shares have been allotted to you, the respective amount will get debited from your bank account or refunded in case no allotment is made to you.
Option – 4 Apply for IPO through Stock Exchanges
NSE Form – Click to download
BSE Form – Click to download
Submit the form with your bank/broker.
Sheetal Universal Company Details
Sheetal Universal Limited
Registered Office: Office No. 348, 2nd Floor, ISCON Mall, 150 Feet Ring Road, Rajkot- 360005, Gujarat
Tel. No: +91-9099302638
Email: cs@sheetaluniversal.com
Website: www.sheetaluniversal.com
Investor Grievances/Compliance Officer: Mrs. Khushbu Kalpit Shah
Sheetal Universal Subsidiary Companies
| Serial No. | Name of Companies |
| 01. | Svar Industries Private Limited |
| 02. | Saumesver International Private Limited |
Sheetal Universal Company Board
| Serial No. | Name of Directors |
| 01. | Hiren Vallabahbai Patel |
| 02. | Kajal Hiren Patel |
Frequently Asked Questions on Sheetal Universal IPO
Ans: Sheetal Universal aims to raise Rs. 23.80 crores through its SME IPO.
Ans: The Sheetal Universal IPO opens for subscription on December 04, 2023.
Ans: Investors can subscribe to Sheetal Universal IPO until its closing date on December 06, 2023.
Ans: Sheetal Universal IPO is scheduled to be listed on the stock exchange on December 11, 2023.
Ans: The minimum investment amount for Sheetal Universal IPO is Rs. 1,40,000.
Ans: The price band for Sheetal Universal IPO shares is set at Rs. 70 per share.
Ans: Sheetal Universal IPO is categorized as an SME IPO.