Shelter Pharma
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Aug 2023 – 14 Aug 2023
- Listing date
- 23 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹42 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹16.03 Cr
- Market cap at offer price
- ₹48.55 Cr
- Promoter holding
- 84.92% → 56.89% pre-issue → post-issue
- ISIN
- INE013V01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- Shelter Nagar, Near S.T.Bus Stand, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,92,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹42
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 21,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.47 | — |
| P/E (×) | 5.62 | — |
| Market cap | — | ₹48.55 Cr |
Key performance indicators
- Return on net worth
- 39.86%
- NAV per share
- ₹18.74
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shelter Pharma
Shelter Pharma Limited, originally converted from Partnership Firm M/s Shelter Pharma to a Public Limited Company on October 12, 2007, is a pharmaceutical company focused on manufacturing herbal products with strong presence in human pharma and veterinary space. The company started with a few products and over time expanded its portfolio through in-house R&D efforts backed by sound knowledge of Ayurveda. Shelter maintains a well-spread presence across Gujarat with products in non-critical segments of both human and veterinary pharma. The company possesses a respectable track record for product efficacy and maintains competitive pricing for its target market. In the human pharma segment, Shelter offers both OTC and ethical pharma products, while similarly maintaining OTC and ethical presence in the veterinary segment. The business was gradually expanded from local presence in Himmatnagar to well-spread presence across Gujarat state. The company sources raw materials directly from nearby villages and farmers, maintaining long-established relationships to ensure assured supply of herbs and plants, focusing on rural/semi-urban markets to offer high-quality, price-competitive remedies.
Company Analysis
from RHPShelter Pharma Limited manufactures herbal pharmaceutical products for human and veterinary markets with presence across Ayurveda-based OTC and ethical pharma segments.
Shelter Pharma Limited, originally converted from Partnership Firm M/s Shelter Pharma to a Public Limited Company on October 12, 2007, is a pharmaceutical company focused on manufacturing herbal products with strong presence in human pharma and veterinary space. The company started with a few products and over time expanded its portfolio through in-house R&D efforts backed by sound knowledge of Ayurveda. Shelter maintains a well-spread presence across Gujarat with products in non-critical segments of both human and veterinary pharma. The company possesses a respectable track record for product efficacy and maintains competitive pricing for its target market. In the human pharma segment, Shelter offers both OTC and ethical pharma products, while similarly maintaining OTC and ethical presence in the veterinary segment. The business was gradually expanded from local presence in Himmatnagar to well-spread presence across Gujarat state. The company sources raw materials directly from nearby villages and farmers, maintaining long-established relationships to ensure assured supply of herbs and plants, focusing on rural/semi-urban markets to offer high-quality, price-competitive remedies.
Objects of the Issue
- Working Capital Requirements ₹1,400.00 Lakh p.22
- General Corporate Purpose ₹87.59 Lakh p.22
- Working Capital Requirements ₹1,400.00 Lakhs p.71
- General Corporate Purposes ₹87.59 Lakhs p.71
- General corporate purposes
Issue Structure
- Total Issue
- ₹1,602.72 Lakh
- Fresh Issue
- 38,16,000 Equity Shares of Face Value ₹10.00 each for cash at a price of ₹42.00 per Equity Share (including premium of ₹32.00 per Equity Share) aggregating to ₹1,602.72 Lakh
- Offer for Sale
- Nil - Entire issue constitutes fresh issue of equity shares
- Price Band
- ₹42.00 per Equity Share (Fixed Price)
- Lot Size
- Market lot and Trading lot of 3,000 and in multiples of 3,000 thereafter; subject to a minimum allotment of 3,000 Equity Shares
- Face Value
- ₹10.00 per Equity Share
Business Model
The company manufactures and sells herbal pharmaceutical products through a distribution network that includes distributors, stockists, and super stockists who supply to end users in domestic and international markets. The company generates revenue through sales of its pharmaceutical products in human and veterinary segments. Approximately 80% of sales and purchases transactions are conducted in retail in cash. The company sources raw materials directly from farmers in nearby villages and produces finished pharmaceutical products at its manufacturing facility in Himmatnagar.
Business Segments
SWOT Analysis
- • Strong herbal product portfolio with Ayurvedic backing and established presence in Gujarat(p.21)
- • Direct farmer relationships ensure assured raw material supply(p.21)
- • Restructured organization with improved infrastructure and manufacturing capacity(p.21)
- • Competitive pricing and focus on rural/semi-urban markets(p.21)
- • Experienced Promoters and Management Team(p.101)
- • Scalable Business Model(p.101)
- • Wide and diverse range of product offerings(p.101)
- • Strong Regional Market Position in Gujarat(p.99)
- • Institutional Clientele Base(p.99)
- • Experienced management team with 15+ years in pharma industry(p.142)
- • Established product portfolio with 182+ products in ayurvedic and veterinary segments(p.117)
- • Long-standing direct relationships with raw material suppliers (farmers)(p.117)
- • ISO 9001:2015 certification demonstrating quality standards(p.117)
- • No employee unions and good employee relations(p.103)
- • Registered trademark (BANOTONE) and multiple logo registrations providing brand protection(p.103)
- • No defaults or restructuring of bank borrowings(p.118)
- • CIBIL defaulter classification and wilful defaulter status from prior defaults(p.26)
- • Largely cash-based business model with incomplete stock records and valuation uncertainties(p.27)
- • Heavy dependence on distributor performance with no non-compete agreements or long-term contracts(p.27)
- • Limited long-term customer and supplier contracts(p.32)
- • Multiple corporate compliance lapses and discrepancies in statutory filings(p.29)
- • No gratuity provision made historically despite crossing employee threshold(p.29)
- • Competing promoter group entity in similar business without non-compete agreement(p.29)
- • PAN card has incorrect incorporation date details(p.28)
- • Direct tax liabilities and pending proceedings involving company and promoters(p.26)
- • Trademark registration still pending; no legal ownership of product names(p.39)
- • Negative cash flow from operations in FY2021 and from investing activities in FY2022(p.37)
- • Low Capacity Utilization(p.102)
- • Limited Geographic Presence(p.99)
- • Underexploited Institutional Sales Channel(p.99)
- • High Dependence on Gujarat Market(p.95)
- • Very small workforce of only 18 employees(p.103)
- • High dependence on promoter ownership with 41.53% shareholding concentrated in two individuals(p.139)
- • Significant increase in short-term borrowings from ₹6.65 lakhs (2022) to ₹130.41 lakhs (2023)(p.151)
- • Substantial bad debt write-off of ₹30 lakhs annually in FY2023 and FY2022(p.161)
- • Single registered office and manufacturing facility location in Himmatnagar(p.103)
- • Indian pharmaceutical market expected to grow significantly to ~US$ 120 billion by 2030(p.21)
- • Growing Ayurveda sector with government support and WHO initiatives(p.21)
- • India's position as global leader in generic medicines and vaccine production(p.21)
- • Expansion into new geographic markets including international exports(p.31)
- • Medical device industry growth trajectory with significant CAGR(p.21)
- • Geographic Expansion Beyond Gujarat(p.101)
- • Export Market Development(p.101)
- • Herbal Remedies Market Growth(p.100)
- • Growing Indian Healthcare Sector(p.91)
- • Expansion of Institutional Client Base(p.102)
- • Growing Pharmaceutical and Ayurveda Sector in India(p.88)
- • Geographic expansion strategy to grow beyond Gujarat into pan-India and international markets(p.103)
- • Digital marketing and visibility expansion through multiple online channels(p.103)
- • Expansion into untapped institutional and government healthcare channel segments(p.103)
- • Government support for Gujarat manufacturing through Industrial Policy 2020 incentives(p.105)
- • Growing market for herbal and ayurvedic products targeting rural and semi-urban demographics(p.117)
- • Intense competition from organized and unorganized pharmaceutical players(p.30)
- • Stringent pharmaceutical regulatory requirements and potential for regulatory violations(p.26)
- • Product shelf-life risks and supply chain disruptions(p.27)
- • Foreign exchange fluctuation exposure from international exports(p.31)
- • Power and infrastructure supply dependency risks(p.37)
- • Risk of product counterfeiting affecting brand and market share(p.28)
- • Technological changes and evolving consumer preferences requiring continuous innovation(p.28)
- • Global operations expose to conflicting legal and regulatory requirements(p.30)
- • COVID-19 pandemic impacts on business operations and economic conditions(p.33)
- • Transportation and supply chain disruptions(p.31)
- • Dependence on raw material availability and price fluctuations(p.32)
- • Strong Competition from Established Players(p.100)
- • Regulatory Changes in Pharmaceutical Industry(p.44)
- • Industry Malpractices and Loss of Consumer Trust(p.44)
- • Political and Economic Instability in India(p.45)
- • Global Economic and Financial Instability(p.45)
- • Natural Calamities(p.46)
- • Terrorist Attacks and Civil Unrest(p.46)
- • Intense competition in pharmaceutical industry requiring continuous expertise and investment(p.103)
- • Regulatory compliance requirements across Drugs and Cosmetics Act, GMP guidelines and multiple state laws(p.106)
- • Environmental compliance obligations including waste management and hazardous chemical handling(p.113)
- • Dependence on raw material availability from agricultural supply chain(p.117)
- • Exposure to foreign exchange risk given operations and international expansion plans(p.117)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Mustaqim Nisarahmed Sabugar | Promoter | As per Capital Structure section (to be extracted from Part 2) | — |
| Mr. Shakil Nisarahmed Sabugar | Promoter | As per Capital Structure section (to be extracted from Part 2) | — |
| Mr. Mustaqim Nisarahmed Sabugar | Promoter | 18.80% | 12.60% |
| Mr. Shakil Nisarahmed Sabugar | Promoter | 22.73% | 15.23% |
| Ms. Zubeda N. Sabugar | Promoter Group | 18.60% | 12.46% |
| Ms. Nasrat M. Sabugar | Promoter Group | 8.26% | 5.54% |
| Ms. Suraiya N. Sabugar | Promoter Group | 8.26% | 5.54% |
| Ms. Parvezbanu R. Idariya | Promoter Group | 8.26% | 5.54% |
| Mr. Mustaqim Nisarahmed Sabugar | Promoter/Managing Director | 18.80% | — |
| Mr. Shakil Nisarahmed Sabugar | Promoter/Whole Time Director | 22.73% | — |
| Mr. Mustaqim Nisarahmed Sabugar | Promoter | — | — |
| Mr. Shakil Nisarahmed Sabugar | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.