Shellz India plans to raise ₹60 crore through an initial public offering on the BSE SME platform. The issue opens for subscription on October 15. The company will issue 33.50 lakh equity shares. It plans to use the money to repay loans and fund working capital for its Sonipat facility.
Shellz India, a confectionery manufacturer under the brand names ‘Hugs’ and ‘Tosca’, plans to raise ₹60 crore through an initial public offering on the BSE SME platform.
The company will issue 33.50 lakh equity shares in the price band of ₹170–179 a share. The issue opens for subscription on October 15.
The net proceeds from the IPO will be used for repayment of certain outstanding borrowings, funding incremental working capital requirements, general corporate purposes and issue related expenses.
Socradamus Capital will be the book-running lead manager, while Bigshare Services has been appointed registrar for the issue. Mansi Share and Stock Broking will be the Marker Maker to the issue.
Shellz manufactures confectionery products in India through a portfolio of over 300 SKUs across baked treats, choco delights, jellies, and panned and sugar confectionery.
The company plans to develop its Sonipat facility as part of the consolidation and expansion of existing operations. The installed capacity is expected to more than double from about 17,100 MTPA to about 34,500 MTPA.
Kapil Garg, Chairman & Managing Director, Shellz India, said the upcoming IPO will help fuel the next phase of growth by strengthening financial resources and supporting expanding operations. As the Sonipat facility scales, it will broaden its product portfolio and deepen its distribution reach, he said.
Shellz has built a wide distribution network in everyday, affordable confectionery, while improving its profitability, and Tosca gives it a second, higher-value avenue, said Neeraj Gupta, pre-IPO investor in Shellz India and founder of Meru Cabs.
“The new Sonipat facility strengthens its base to scale. This listing should help the company fund its next phase of growth,” he added.
Priyesh Jain, Director, Socradamus Capital said: “Shellz India has built its confectionery business around a diverse product portfolio, in-house manufacturing capabilities and an established distribution network.”
The IPO is expected to strengthen the company’s financial resources and support the execution of these plans as it responds to evolving consumer preferences, he added.