Schedule of Shubhshree Biofuels Energy
| Issue open date | 09 Sep 2024 |
| Issue close date | 11 Sep 2024 |
| UPI mandate deadline | 11 Sep 2024 (5 PM) |
| Allotment finalization | 12 Sep 2024 |
| Refund initiation | 13 Sep 2024 |
| Share credit | 13 Sep 2024 |
| Listing date | 16 Sep 2024 |
| Mandate end date | 26 Sep 2024 |
| Lock-in end date for anchor investors (50%) | 12 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 11 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Shubhshree Biofuels Energy
Founded in 2013, Shubhshree Biofuels Energy is a growing name in the biomass fuel industry. The company supplies biomass pellets and briquettes, offering a cleaner, sustainable alternative to traditional fuels like coal, firewood, and lignite. These fuels are used in industries for heating, cooking, and power generation. Shubhshree caters to sectors like recycling, textile processing, pharmaceuticals, and metals. Besides manufacturing its own biomass fuels, the company sources additional supplies from various vendors. With a total production capacity of 132 tonnes per day, it operates three machines—one owned and two rented. The company’s focus on alternative energy positions it as a key player in the shift away from fossil fuels.
Financials of Shubhshree Biofuels Energy
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹16.56 crores |
| Fresh Issue | ₹16.56 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 2.07 (12.5%) |
| General corporate purposes | 14.49 (87.5%) |
Strengths
- The company’s factory is in Tonk, Rajasthan, which has a location advantage as it procures most of the raw material requirements relating to agricultural waste from the farms which are located at nearby locations.
- The company provides eco-friendly products viz. Bio-pellets and briquettes are considered to be a good substitute for fossil fuels in those industries where the use of fossil fuels such as coal, gas, lignite, diesel, etc. is made in large quantities.
- The company can benefit from the Government’s push to increase the use of Biomass pellets in briquettes as the Ministry of Power has mandated that all coal-based thermal power plants of power generation utilities with bowl mills, shall on an annual basis mandatorily use a minimum of 5% blend of biomass pellets made, primarily, of agro residue along with coal with effect from FY 2024-25 which shall increase to 7% with effect from FY 2025-26.
Risks
- The biomass fuel industry is a relatively new concept and is yet to have a defined market as compared to conventional fuels, leading to some resistance from potential customers to switch to biomass fuel.
- The company generates nearly 71% of its revenue from its top 5 clients. The loss of any such key clients, a significant reduction in the demand from such clients, or deterioration in their financial condition may adversely affect the business.
- The company generates almost entire of its sales from certain geographical regions especially Northern states like Haryana, Uttar Pradesh, Rajasthan, and NCR region. Any adverse developments affecting the operations in these regions could adversely impact the business.
- The business is subject to seasonal variations that could result in fluctuations in the results of operations.
- Any rise in costs or a deficiency in the availability of the raw materials that it procures could adversely impact the company’s sales, profitability, and operational results.