Sheel Biotech Ltd IPOSHEEL

The IPO opens on 30 Sept 2025 & closes on 03 Oct 2025.

Sheel Biotech Limited was incorporated as a Private Company as 'Sheel Biotech Private Limited' dated November 26, 1991, with the Registrar of Companies, Delhi & Haryana. Further, Company was converted into a Public Limited Company w.e.f. April 02, 1992. The Company was founded by Dr. Satya Narayan Chandak in 1991. Thereafter, through his vision he led the stone of Tissue Culture lab wherein for advancement of lab he deputed two of his scientists to Netherlands for training to expand the business ventured in domestic market too and then added greenhouse division to promote protected cultivation. The Company started the Import division in 2019 and importing tulip, glad, lilium, orchids and alstromeria. The Company's Manesar facility is now second largest with production capacity of 10 million plants northern region of India. In 2008, Dr. Chandak established Sheel Biotech's Organic Division. He motivated farmers to decrease the use of chemical fertilizers and raised concern about the associated health risks, and saw organic farming as a solution to these issues. Company has since thrived, establishing partnerships with global entities like M/s Cravo Equipments Limited, M/s Dummen Orange, and setting up operations across several Indian states, including Kerala, Andhra Pradesh, Arunachal Pradesh, and at IICHR in Bangalore. Further, with expertise in green house and Poly house, the African country gave Promoters the project in Eritrea nearby Ethiopia as well. Sheel Biotech an ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 certified company and is managed by industry experts and professionals with knowledge in the field of Biotechnology, Agriculture, Floriculture, Horticulture, Tissue Culture and Green Houses. Company is presently engaged in the business of growing, developing, processing, and supplying a wide range of plants for field crops, fruits, vegetables, and ornamental plants through tissue culture and organic farming. It manufacture and maintain greenhouses, offer services to farmers and provide training through Farmer Producer Organizations (FPOs). Additionally, it deliver green landscaping services to both government and private sectors. The Company issued 54,00,000 equity shares of Rs 10 each, raising Rs 34.02 crores through IPO in October 2025.

Sheel Biotech Ltd IPO will close on 03 Oct 2025.

<ul><li>Our ability to capitalize the opportunities and growth in the Tissue Culture industry.</li><li>Promotion of Tissue Culture industry by the Government of India.</li><li>Cordial relations with our clients.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Satya Narayan Chandak</td> <td>1509550</td> <td>10.1</td> <td>1509550</td> <td>7.42</td> </tr> <tr> <td>2</td> <td>Sanjay Chandak</td> <td>2321375</td> <td>15.52</td> <td>2321375</td> <td>11.41</td> </tr> <tr> <td>3</td> <td>Divya Chandak</td> <td>2156000</td> <td>14.42</td> <td>2156000</td> <td>10.59</td> </tr> <tr> <td>4</td> <td>Mini Chandak</td> <td>---</td> <td>---</td> <td>---</td> <td>---</td> </tr> <tr> <td>5</td> <td>Satya Narayan Chandak (HUF)</td> <td>1465450</td> <td>9.8</td> <td>1465450</td> <td>7.2</td> </tr> <tr> <td>6</td> <td>Sanjay Chandak (HUF)</td> <td>1561000</td> <td>10.44</td> <td>1561000</td> <td>7.67</td> </tr> <tr> <td>7</td> <td>Sumeet Chandak (HUF)</td> <td>1679300</td> <td>11.23</td> <td>1679300</td> <td>8.25</td> </tr> <tr> <td>8</td> <td>Simmi Bhutra</td> <td>2100</td> <td>0.01</td> <td>2100</td> <td>0.01</td> </tr> <tr> <td>9</td> <td>Sheela Chandak</td> <td>1055250</td> <td>7.06</td> <td>1055250</td> <td>5.18</td> </tr> <tr> <td>10</td> <td>Vitro Biotechnologies Limited</td> <td>775250</td> <td>5.18</td> <td>775250</td> <td>3.81</td> </tr> <tr> <td>11</td> <td>Neha Chandak</td> <td>1037925</td> <td>6.94</td> <td>1037925</td> <td>5.1</td> </tr> <tr> <td>12</td> <td>Jayshee Investment Private Lim</td> <td>324450</td> <td>2.17</td> <td>324450</td> <td>1.59</td> </tr> <tr> <td>13</td> <td>Blue Ocean Realestates Private</td> <td>306600</td> <td>2.05</td> <td>306600</td> <td>1.51</td> </tr> <tr> <td>14</td> <td>Amit Cement Private Limited</td> <td>308000</td> <td>2.06</td> <td>308000</td> <td>1.51</td> </tr> </tbody> </table>

<ul><li>We depend on government tenders for our revenue of operations. Any unavailability or any failure to secure these tenders in the future may adversely affect our business operations and financial conditions.</li><li>One of our business segment Tissue culture demands the highest level of precautions in quality, storage, and temperature management. Any negligence in these areas can significantly affect our business outcomes.</li><li>We use the proper techniques in the whole tissue culture process. Any Ineffective sterilization of tools and media can lead to contamination, which would adversely affect the entire culture.</li><li>Our business is subject to seasonal fluctuations that could result in delays or disruptions to our operations during the critical periods of our projects and cause severe damage to our premises and equipments.</li><li>Our Company is involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render us/them liable to penalties and may adversely affect our business and result of operations.</li><li>Our success depends largely upon the services of our Directors, Promoters and other Key Managerial Personnel and our ability to attract and retain them. Demand for Key Managerial Personnel in the industry is intense and our inability to attract and retain Key Managerial Personnel may affect the operations of our Company.</li><li>Any disruption, breakdown or shutdown of our research and development may have a material adverse effect on our tissue culture segment, financial condition, results of operations and cash flows.</li><li>We have had negative cash flows in the past and may continue to have negative cash flows in the future.</li><li>Our Company does not own the premises through which we conduct our business operations.</li><li>There have been instances of delay in filing of GST and ESIC returns of the Company. We may be subject to regulatory actions and penalties for any such delays and our business, financial condition and reputation may be adversely affected.</li><li>Our Company may not have complied with certain statutory provisions of the Companies Act, 2013. Such non- compliances / lapses may attract penalties and prosecution against the Company and its directors which could impact on the financial position of the Company to that extent.</li><li>We depend on a limited number of customers for a significant portion of our revenues. The loss of a major customer or significant reduction in demand from any of our major customers may adversely affect our business, financial condition, results of operations and prospects.</li><li>The restated financial statement of the company has been provided by the peer reviewed chartered accountant who is not the statutory auditor of the Company.</li><li>Our Company may not have complied with certain statutory provisions of the Companies Act, 2013. Such non- compliances / lapses may attract penalties and prosecution against the Company and its directors which could impact on the financial position of the Company to that extent.</li><li>As per the PCS Certificate dated September 17, 2025, issued by M/S Sonia Patel and Associates, we have inadvertently not complied with certain statutory provisions of the Companies Act, 2013.</li><li>If we do not deliver government projects on time, the likelihood of receiving future bids diminishes significantly. This delay may have a material adverse effect on our business, financial condition, results of operations, and prospects.</li><li>Our Top 10 Suppliers contribute a significant portion of our raw material purchase during the period ended March 31, 2025, and previous financial years. Any dispute with one or more of them may adversely affect our business operation</li><li>We require high working capital for our smooth day to day operations of business and any discontinuance or our inability to procure adequate working capital timely and on favorable terms may have an adverse effect on our operations, profitability and growth prospects.</li><li>Majority of our state wise revenues from operations for the last 3 years is majorly derived from below mentioned states. Any adverse developments affecting our operations in this state could have an adverse impact on our revenue and results of operations.</li><li>Our contingent liabilities as stated in our Restated Financial Statements could adversely affect our financial conditions.</li><li>Weather conditions and pest attacks could adversely affect the production of our plants, as well as the demand for our plants, which may adversely affect our business, financial condition, results of operations and prospects.</li><li>Our proposed capital expenditure relating to production of blueberries are subject to the risk of unanticipated delays in implementation and cost overruns.</li><li>If we do not deliver government projects on time, the likelihood of receiving future bids diminishes significantly. This delay may have a material adverse effect on our business, financial condition, results of operations, and prospects.</li><li>Our inability to comply with environmental laws and other regulatory requirements in relation to water waste Management may adversely affect our business, financial condition and results of operations.</li><li>Our Company has entered into certain related party transactions in the past and may continue to do so in the future.</li><li>We have issued Equity Shares during the last one year at a price that may be below the Issue Price.</li><li>Our Company has been incorporated in the year 1991 and the secretarial data of the company can be fetched from the ROC website after 2006 only. We have relied on the data provided by the management from internal records or from independent professionals.</li><li>Our promoters have vast experience in the industry. The experience of the promoters have been mentioned as per the available experience letters, declarations and affidavits furnished by certain of our promoters for details of their profiles included in this Red Herring Prospectus.</li><li>Our business operations are subject to various operating risks at our sites, accidental risk, the occurrence of which can affect our results of operations and consequently, financial condition of our Company.</li><li>We may not be able to prevent unauthorized use of trademarks obtained/ applied for by third parties, which may lead to the dilution of our goodwill.</li><li>Our Company has unsecured loans that may be recalled by the lenders at any time.</li><li>Our insurance coverage in connection with our business may not be adequate and may adversely affect our operations and profitability.</li><li>Our Company has entered into certain related party transactions in the past and may continue to do so in the future.</li><li>Our Company's operation and growth is dependent upon successful implementation of our business strategies.</li><li>In addition to normal remuneration, other benefits and reimbursement of expenses some of our Directors (including our Promoters) are interested in our Company to the extent of their shareholding and dividend entitlement in our Company.</li><li>If we fail to maintain an effective system of internal controls, we may not be able to successfully manage or accurately report our financial risk.</li><li>We are subject to stringent labor laws or other industry standards and any strike, work stoppage, Lock-out or increased wage demand by our employees or any other kind of disputes with our employees could adversely affect our business, financial condition and results of operations.</li><li>Industry information included in this Red Herring Prospectus has been derived from the last updated industry reports from various websites for the year 2024 and 2025. The reliability on the forecasts of the reports could be incorrect and would significantly impact our operations.</li><li>Our Company's future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by us, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.</li><li>The average cost of acquisition of Equity Shares by our Promoters is lower than the issue price.</li><li>Our insurance coverage in connection with our business may not be adequate and may adversely affect our operations and profitability.</li><li>Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>There are certain restrictions on daily movements in the price of Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.</li><li>After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.</li><li>Market price of our share will be decide by market forces and issue price of equity share may not be indicative of the market price our share price after the issue.</li></ul>

The Issue type of Sheel Biotech Ltd is Book Building - SME.

The minimum application for shares of Sheel Biotech Ltd is 4000.

The total shares issue of Sheel Biotech Ltd is 5400000.

Initial public offer of 54,00,000 equity shares of Rs. 10/- each ("Equity Shares") of Sheel Biotech Limited ("S B L" or The "Company") for cash at a price of Rs. 63/- per equity share (The "Issue Price"), aggregating to Rs. 34.02 crores ("The Offer"). Out of the issue 2,72,000 equity shares aggregating to Rs. 1.71 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 51,28,000 equity shares of face value of Rs. 10.00/- each at an issue price of Rs. 63/- per equity share aggregating to Rs. 32.31 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.53% and 25.20%, respectively of the post issue paid up equity share capital of the Company. Price Band: Rs. 59/- to Rs. 63/- for equity share of face value of Rs. 10 each. The floor price is 5.90 times times the face value and cap price is 6.30 times of the face value of the equity shares. Bids can made for a minimum of 4,000 equity shares and in multiples of 2,000 equity shares thereafter.