Shellz India is preparing to enter the primary market with an initial public offering on the BSE SME platform. The company manufactures and markets a diverse portfolio of confectionery and bakery items, catering to mass-market consumers as well as institutional and international buyers. According to the red herring prospectus, the issue opens for bidding on 15 October 2026 and closes on 19 October 2026.
Company Overview and Business Model
Founded to manufacture and market confectionery products in India, Shellz India operates primarily under its flagship Hugs brand and its mass-premium Tosca brand. Its product portfolio spans four major categories: baked treats, chocolate-based items, jellies, and panned or sugar candies. Well-known offerings include Push Up the Cone, Dip Sticks, American Cow, Ghana Truffles, and Squarz. These products are designed to target impulse-driven snack consumers, with Hugs focusing on mass-market accessibility and most items priced at INR 10 or below. Meanwhile, Tosca targets higher-value segments through differentiated formulations and digital distribution channels.
Beyond retail packaged goods, the company supplies food and bakery ingredients to institutional customers such as hotels, restaurants, cafés, and industrial users. It also undertakes private-label manufacturing and exports products to overseas markets. Distribution across domestic markets is anchored by 344 super stockists as of March 2026. Manufacturing operations are centered in Delhi and Sonipat, Haryana, where the Sonipat plant is being developed to streamline production capabilities. As of 31 August 2026, the firm employs 258 full-time staff under the leadership of promoters Kapil Garg and Shalini Garg.
Shellz India IPO Issue Structure and Parameters
The book-built issue aims to raise between INR 56.96 crore and INR 59.97 crore via a fresh issue of 33,50,400 equity shares, with no offer-for-sale component. The price band has been fixed at INR 170 to INR 179 per share, with a face value of INR 10 per share. Retail investors must apply for a minimum lot size of 800 shares, translating to a minimum investment of INR 1,43,200 at the upper price band. High-net-worth bidders making a minimum bid require 1,600 shares amounting to INR 2,86,400.
| IPO Opening Date | 15 October 2026 |
| IPO Closing Date | 19 October 2026 |
| Price Band | INR 170 to INR 179 per share |
| Fresh Issue Size | 33,50,400 shares (INR 56.96 – 59.97 crore) |
| Offer For Sale | Nil |
| Minimum Lot Size | 800 shares (INR 1,43,200) |
| Basis of Allotment | 21 October 2026 |
| Listing Date | 23 October 2026 |
| Listing Exchange | BSE SME |
Objects of the Issue
The net proceeds generated from the fresh issue will be deployed toward specific growth and balance-sheet objectives outlined by the company:
- Repayment or prepayment, in full or in part, of certain outstanding borrowings availed by the company, amounting to INR 22 crore
- Funding incremental working capital requirements, amounting to INR 23 crore
- General corporate purposes
Financial Performance Overview
The financial statements indicate steady expansion in top-line revenue and profitability over recent fiscal periods. Revenue climbed from INR 162.41 crore in FY 2024 to INR 186.97 crore in FY 2025, and further reached INR 192.62 crore in FY 2026. For the first quarter of fiscal 2027 (Q1 FY 2027), the company reported revenue of INR 47.24 crore.
Net income experienced a sharper upward trajectory, growing from INR 5.25 crore in FY 2024 to INR 8.30 crore in FY 2025, and doubling to INR 13.37 crore in FY 2026. Net profit for Q1 FY 2027 stood at INR 4.08 crore, accompanied by an expanding net margin of 8.63%.
| Metric (INR Crores) | FY 2024 | FY 2025 | FY 2026 | Q1 FY 2027 |
|---|---|---|---|---|
| Revenue | 162.41 | 186.97 | 192.62 | 47.24 |
| Expenses | 154.84 | 174.77 | 173.89 | 41.60 |
| Net Income | 5.25 | 8.30 | 13.37 | 4.08 |
| Net Margin (%) | 3.24% | 4.44% | 6.94% | 8.63% |
Market and Business Analysis
Market Impact and Sector Sentiment
The confectionery and impulse-snack segment in India benefits from rising disposable incomes, urbanisation, and a growing youth demographic. Shellz India targets both the value-conscious consumer base through its Hugs brand and premium-seeking buyers through Tosca. This dual approach allows the firm to capture multiple tiers of consumer spending. The BSE SME listing provides the business with public currency to support its ongoing manufacturing expansion in Sonipat and reduce its debt burden.
Financial and Valuation Analysis
Based on the reported data, the company’s financial health has strengthened. Return on Net Worth (RONW) improved from 19.47% in FY 2024 to 22.68% in FY 2026, while Return on Equity (ROE) expanded from 21.56% to 26.87% over the same timeframe. Earnings per share (EPS) on a pre-issue basis for FY 2026 reached INR 15.37, giving a pre-issue P/E ratio of 11.06 to 11.65 at the price band. On a post-issue diluted basis for FY 2026, the P/E ratio adjusts to 15.31 to 16.12.
| Valuation & Return Metric | FY 2024 | FY 2025 | FY 2026 (Pre-Issue) | FY 2026 (Post-Issue) |
|---|---|---|---|---|
| EPS (INR) | 6.09 | 9.59 | 15.37 | 11.10 |
| P/E Ratio | – | – | 11.06 – 11.65 | 15.31 – 16.12 |
| Price/Sales | – | – | 0.77 – 0.81 | 1.07 – 1.12 |
| ROE (%) | 21.56% | 24.57% | 26.87% | – |
| Debt/Equity | 2.63 | 1.93 | 1.71 | – |
The debt-to-equity ratio has steadily declined from 2.63 in FY 2024 to 1.71 in FY 2026. Allocating INR 22 crore of the net proceeds toward debt repayment is expected to further de-leverage the balance sheet, lowering finance costs and improving net profitability margins going forward.
Key Takeaways
- Shellz India operates in the confectionery sector with mass and premium brands including Hugs and Tosca.
- The IPO is structured as a fresh issue of 33,50,400 shares to raise between INR 56.96 crore and INR 59.97 crore.
- The bidding dates are set from 15 October 2026 to 19 October 2026 at a price band of INR 170 to INR 179 per share.
- Net proceeds will be used primarily for debt repayment (INR 22 crore) and working capital (INR 23 crore).
- Revenue grew to INR 192.62 crore in FY 2026, with net income rising to INR 13.37 crore.
- The pre-issue P/E ratio stands at 11.06 to 11.65 based on FY 2026 earnings.
Frequently Asked Questions
The Shellz India IPO opens for bidding on 15 October 2026 and closes on 19 October 2026.
The price band for the Shellz India IPO is set at INR 170 to INR 179 per share.
The total issue size ranges between INR 56.96 crore and INR 59.97 crore, consisting entirely of a fresh issue of 33,50,400 shares.
The net proceeds will be used for debt repayment of INR 22 crore, funding incremental working capital requirements of INR 23 crore, and general corporate purposes.
The minimum lot size for retail investors is 800 shares, requiring a minimum investment of INR 1,43,200 at the upper price band.
The shares will be listed on the BSE SME platform.
In FY 2026, Shellz India reported revenue of INR 192.62 crore and a net income of INR 13.37 crore.
The promoters of Shellz India are Kapil Garg and Shalini Garg.
