Snehaa Organics IPO Opens Aug 29: Price Band ₹115–₹122, Analysts See Long-Term Upside

Snehaa Organics Ltd—positioned as one of India’s early pure-play green-solvent and recycling specialists—will open its Initial Public Offering (IPO) on Friday, August 29, 2025. The company aims to list on the NSE Emerge (SME) platform on September 5, 2025, after closing subscriptions on September 2 and finalising allotment on September 3.

Key IPO Highlights (At a Glance)

• Issue Type: 100% fresh issue

• Issue Size: ~₹32.68 crore

• Shares Offered: 26.79 lakh equity shares

• Price Band:₹115–₹122 per share

• Market/Lot Size:1,000 shares per lot

• Retail Minimum:2 lots (2,000 shares) → approx ₹2.30–₹2.44 lakh

• HNI Minimum:3 lots (3,000 shares) → approx ₹3.45–₹3.66 lakh

• Bid Window:Aug 29 – Sept 2, 2025

• Proposed Listing:Sept 5, 2025 on NSE SME (Emerge)

What the Company Does

Snehaa Organics operates across pharmaceuticals, agrochemicals, specialty chemicals, and paints, supplying green solvents and recycled solvent solutions to B2B customers. With 60 KL kettles and 27 KL reactors already in place, the company says it is geared to scale sustainable processing while deepening customer relationships in regulated, quality-sensitive end-markets.

Financial & Valuation Snapshot

Brokerage commentary flags a marked improvement in operating performance over the last two years—revenues have nearly doubled from FY23 to FY25, with EBITDA margin at 43.5% and PAT margin at 28.0% (as cited by analysts). Return ratios are described as robust (RoE ~49.7%, RoCE ~50.4%). On post-issue equity of ~₹10.18 crore, the offer is indicated at around 12x FY25 earnings and 0.70x P/BV, which, per one brokerage note, sits well below the broader chemicals peer-group multiples.

Khandwala Securities (SEBI-registered): Cites strong profitability, capital efficiency, and attractive valuation vs. sector averages, assigning a ‘Subscribe’ view for investors seeking valuation comfort and potential upside.

Avinash Mentor Research Services (SEBI-registered analyst Avinash Gorakshakar): Highlights scaling momentum, deep B2B relationships, and the company’s positioning as a fully-built recycling-solvent platform; recommends ‘Subscribe’ for long-term investors.

(Analyst opinions are their own; investors should evaluate risks independently.)

Use of Proceeds

Management plans to channel the fresh capital largely toward working capital to support scale-up—projected requirements of about ₹47.0 crore (₹4,699.51 lakh) for FY 2025–26—and to purchase raw materials directly, reducing dependence on job-work and sharpening control over margins and throughput.

Why It Matters

• Sustainability Tailwinds: Demand for circular-economy inputs and waste-minimisation is rising across pharma and specialty chemicals—segments where traceability and cost discipline are critical.

• Operating Leverage: Existing capacity (reactors/kettles) provides room to sweat assets, potentially improving fixed-cost absorption as volumes scale.

• Valuation Comfort: Headline multiples, as referenced by brokers, screen lower versus many listed chemical peers—often a key consideration for SME investors.

Risks & What to Watch

• SME Listing Volatility: SME counters can be illiquid and more volatile, with steeper listing-to-liquidity cycles.

• Customer/Segment Concentration: B2B exposure to regulated sectors is an advantage—but can also amplify order-book and compliance risks.

• Working-Capital Intensity: Execution hinges on inventory/receivable discipline as the company scales direct purchases and expands its book.

SMEStreet Perspective

Early-mover positioning in green & recycled solvents, improving unit economics, and capacity on ground make Snehaa Organics an IPO to watch in the sustainability-linked chemicals space. That said, SME investors should weigh category risks (liquidity, concentration, WC cycles) and perform their own diligence on customer mix, supply contracts, and post-issue leverage before taking a call.

Disclosure & Disclaimer: This article is a re-presentation for editorial purposes on SMEStreet and does not constitute investment advice. Market participants should consult their financial advisor and refer to official offer documents before investing.