Nagpur-based Shriram Food Industry has filed IPO papers with the Securities and Exchange Board of India (SEBI). Shriram Food IPO is a mix of fresh issue of up to 2.12 crore shares and an offer for sale (OFS) of 52 lakh shares. Proceeds from the fresh issue are earmarked primarily for repayment of borrowings worth INR 70 crore, with the balance to be used for expansion and general corporate purposes.
Shriram Food IPO: Company Overview
Incorporated in 2014, Shriram Food Industry is part of the diversified Greta Group, a global business house with operations spanning eight countries and interests in steel, scrap recycling, power generation, minerals, and food processing. For Greta Group, Shriram represents its presence in the agri-commodity space, with a particular focus on the rice industry.
The company operates on a hybrid business model — combining both trading and manufacturing. A large share of revenue comes from trading processed rice sourced from third-party suppliers, while its own integrated milling and processing facility in Nagpur adds value through activities like dehusking, grading, polishing, and packaging. The facility spans 3.47 lakh square feet, with a processing capacity of 76,800 metric tonnes per annum (expanded to 1,63,200 MT from August 2025) and storage infrastructure of over 50,000 MT, including 23 dedicated silos.
The company offers a diverse portfolio of parboiled rice, white rice, and 100% broken rice, catering to bulk buyers worldwide. A distinctive feature of its model is third-party labelling — exports are packaged under the brand names of overseas buyers, with customized packaging solutions.
Procurement is carried out through a network of 200+ brokers and agents across India’s key rice-producing states such as Maharashtra, Chhattisgarh, Uttar Pradesh, Bihar, and West Bengal. On the customer side, Shriram has built a loyal base of buyers across 33 export markets, with significant presence in Africa, the Middle East, and Asia. While exports remain the primary driver, the company has recently increased its domestic footprint, including large government-linked orders routed through NAFED and NCCF.
Customer concentration is relatively high — in FY25, the top five clients contributed 49.3% of revenues, while the top ten accounted for 66.5%.
Shriram Food IPO: Selling Shareholders & BRLM
Shriram Food IPO consists of a fresh issue and an offer for sale. Among the selling shareholders are Orient Dealtrade (18.2 lakh shares) and Greta Industries (33.8 lakh shares), both promoter entities. The issue is being managed by Choice Capital Advisors, with Mufg Intime India as registrar. Shares are proposed to be listed on BSE and NSE.
Financial Performance
The company has shown fluctuating but overall upward financial performance, impacted in FY24 by government-imposed export restrictions. With those curbs lifted, FY25 saw a strong rebound.
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | 1,259.66 | 666.05 | 1,359.45 |
| EBITDA | 54.56 | 27.83 | 73.55 |
| EBITDA Margin (%) | 4.33% | 4.18% | 5.41% |
| Profit After Tax (PAT) | 33.91 | 14.48 | 42.76 |
| PAT Margin (%) | 2.69% | 2.17% | 3.15% |
| Return on Net Worth (%) | 47.08% | 15.08% | 34.39% |
| Debt-Equity Ratio | 0.80 | 0.23 | 1.53 |
| Capacity Utilisation (%) | 98.46% | 41.80% | 55.57% |
The company’s profitability dipped sharply in FY24 due to the government’s ban on white rice exports and a 20% duty on parboiled rice. However, with duties reduced and eventually removed in late 2024, revenues surged back in FY25, accompanied by improved margins.
Expansion & Strategy
Looking ahead, Shriram plans to transition towards a processing-led enterprise. A key project is the proposed new rice processing facility at Kachchh, Gujarat, located near Kandla Port — India’s major maritime hub. This facility will enhance efficiency, reduce inland freight costs, and provide direct access to export routes.
The company is also preparing to diversify into Basmati rice, leveraging its enhanced capacity to move up the value chain. On the domestic front, new regional offices in Chennai and Nagpur aim to capture growing demand, while government tenders continue to provide bulk sales opportunities.
Cost optimization remains a central strategy, with efforts to reduce procurement expenses, streamline logistics, and strengthen direct sourcing networks. A major goal is deleveraging — with INR 70 crore from the IPO proceeds allocated for loan repayment, management expects to bring down debt levels and improve balance sheet flexibility.
Market Context
India is the world’s largest rice exporter, accounting for over 40% of global shipments. Demand from Africa, the Middle East, and Asia remains robust, driven by affordability and dietary preferences. However, the industry is heavily exposed to regulatory interventions, as seen in the 2023–24 export bans and duties, which significantly disrupted earnings.
Shriram’s scale, integrated operations, and strong customer relationships provide a competitive edge, but risks around policy volatility, customer concentration, and raw material price fluctuations remain.
Conclusion
Shriram Food Industry’s IPO filing follows ACJK Exports (Aeroplane Basmati) IPO filing for a INR 550 cr fresh issue, highlighting rising IPO activity in India’s rice export sector. Shriram Food Industry IPO marks a significant step in its evolution from a trading-oriented player to a processing-led enterprise with global ambitions. The company brings a compelling mix of scale, export reach, and growth strategy, backed by the Greta Group’s international footprint. Its focus on deleveraging and capacity expansion could position it well for sustained growth.
At the same time, the business remains vulnerable to regulatory shocks and high customer concentration, factors investors will need to weigh carefully.
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