Shri Ahimsa Naturals is going to launch its Initial Public Offering (IPO) on 25 March 2025 and we want to grab the attention of all the investors who are interested in the booming health and wellness sector. As a leading manufacturer and exporter of herbal and plant-based extracts, the company has built a reputation for quality, consistency and innovation. In this article, we will present an in-depth Shri Ahimsa Naturals IPO review, covering financials, business strengths, and risk factors, and other details.
Table of Contents
#1 Shri Ahimsa Naturals IPO Review: Company Overview
Shri Ahimsa Naturals was established in 1990 and manufactures high-quality Caffeine Anhydrous Natural, Green Coffee Bean Extracts (GCE) and Crude Caffeine. The company stands out for its unique extraction process, using crude caffeine from global sources like Vietnam and Mexico and recently started producing crude caffeine from tea and coffee waste.
The products cater to various sectors like pharmaceuticals, food and beverages, nutraceuticals and cosmetics – all growing sectors. The company’s business model is a blend of domestic B2B sales and exports, with a significant contribution to revenue coming from international clients.
Diversified Product Portfolio with Strong Market Potential
- Caffeine Anhydrous Natural accounts for around 69.89% of revenue in H1 FY 2025 and is the flagship product due to its wide range of applications and consistent demand.
- Green Coffee Bean Extract also generates significant revenue (26.86% in H1 FY 2025) due to its antioxidant and health benefits.
- Traded Herbal Extracts (Senna Leaf P.E., Ashwagandha, Turmeric Extract, Garcinia Cambogia, etc.): Contributed 3.25% of revenue in H1 FY 2025.
#2 Shri Ahimsa Naturals IPO Analysis: Industry Overview
As per RHP, India is becoming a hub for herbal and plant-based product manufacturing due to its natural biodiversity and skilled workforce. The wellness and nutraceutical sector is on a growth path and plant-based health solutions are being adopted globally. Shri Ahimsa Naturals is well-placed to capitalize on this trend with its investments in manufacturing, research and consistent product quality.
#3 Shri Ahimsa Naturals IPO Review: Manufacturing Facility & Capacity Utilization
The company has its manufacturing facility in RIICO Industrial Area, Bagru, Jaipur, Rajasthan. The facility is backed by in-house R&D and quality lab. The facility is equipped with the latest technology and is international quality compliant to ensure consistency in production.
- Caffeine Anhydrous Natural & Crude Caffeine: Installed capacity of 270 MTPA; recent utilization stood at 57.78% (FY 2024), indicating ample headroom for future production scaling.
- Green Coffee Bean Extract: Installed capacity at 200 MTPA with recent utilization at 65.00%, poised for increased production aligned with market demand.
#4 Shri Ahimsa Naturals IPO Review: IPO Details
IPO Price: INR 113 – 119 per share IPO Opening Date: 25 March 2025 IPO Closing Date: 27 March 2025 Issue Size: INR 73.81 crore Total Shares Offered: 62,02,800 equity shares (Fresh issue+OFS) Minimum Bid: 1,200 shares (INR 1,42,800) Market Maker Reservation: 3,12,000 shares Anchor Investor Reservation: 17,54,400 shares Listing Exchange: NSE EMERGE Listing Date: 2 April 2025 Qualified Institutional Buyers (QIBs): 50% Retail Individual Investors (RIBs): 35% Non-Institutional Investors (NIIs): 15%
#5 Shri Ahimsa Naturals IPO Analysis: Strong Financial Performance
Shri Ahimsa Naturals has showcased steady financial performance over the past three fiscal years:
| FY 2022* | FY 2023 | FY 2024 | H1 FY 2025 | |
| Revenue | 58.04 | 104.13 | 78.08 | 40.72 |
| Expenses | 43.18 | 55.34 | 53.39 | 28.20 |
| Net income | 11.02 | 38.21 | 18.67 | 9.74 |
| Margin (%) | 18.99 | 36.69 | 23.91 | 23.92 |
* All Standalone Data
This indicates consistent profitability, despite minor fluctuations in revenue, and positions the company well for sustainable growth.
#6 Shri Ahimsa Naturals IPO Analysis: Attractive Valuations and Solid Margins
- Earnings Per Share (EPS): Increased from INR 6.79 in FY 2022 to INR 20.85 in FY 2023 and then to INR 10.19 in FY 2024.
- PE Ratio: The IPO is offering a PE of 11.09 to 11.68 times FY 2024 earnings, very reasonable.
- Return on Net Worth (RONW): Robust at 22.25% in FY 2024, showcasing efficient use of shareholder capital.
- Debt/Equity Ratio: Maintained low at 0.07, reflecting prudent financial management.
#7 Shri Ahimsa Naturals IPO Review: Use of IPO Proceeds
The IPO proceeds will be used to fund growth initiatives, out of which INR 35 crore will be invested in the wholly owned subsidiary Shri Ahimsa Healthcare Pvt Ltd to set up a new manufacturing facility at Sawarda, Jaipur. This is a strategic move to increase capacity and meet the growing global demand.
#8 Dominant Export-Oriented Revenue Model
Shri Ahimsa Naturals operates primarily as an Export Oriented Unit (EOU), exporting products to over 14 countries, including the USA, Germany, South Korea, the UK, and Thailand. Export revenues consistently contribute significantly to overall revenue:
- H1 FY 2025: INR 35.31 crore (86.72%)
- FY 2024: INR 74.37 crore (95.24%)
- FY 2023: INR 99.88 crore (95.92%)
- FY 2022: INR 56.34 crore (97.06%)
The sustained high export contribution underscores global demand and customer confidence.
#9 Shri Ahimsa Naturals IPO Review: Strengths
- Strong export markets with high-quality standards.
- In-house R&D team focused on product innovation and quality.
- Consistent financial performance with stable margins.
- Long-standing client relationships with repeat business from global buyers.
#10 Shri Ahimsa Naturals IPO Analysis: Key Risk Factors
- In 1996, the company defaulted on INR 0.47 crore from SBI, later settled under the OTS scheme. An appeal is still pending with DRAT, and future defaults can’t be ruled out.
- Ex-Director Mr. Rakesh Kumar is under investigation for ITC worth INR 10.28 crore. He resigned in Feb 2025 but the ongoing case poses a reputation risk.
- The company has reported negative cash flows of INR (0.94) crore in H1 FY 2025 and INR (1.56) crore in FY 2024 which can impact future operations if continues.
- A criminal case (Case No. 222/2007) was filed against promoter Mr. Nemi Chand Jain, which was disposed of without adverse action. However, records of disposal are unavailable, and any future reopening of this case could harm the company’s reputation.
- As of 28 February 2025, the company has unsecured loans of INR 1.24 crore which are repayable on demand. Any demand for repayment can impact the company’s cash flow.
Should You Invest in Shri Ahimsa Naturals IPO?
Shri Ahimsa Naturals is a good opportunity for investors looking to get exposure to the nutraceutical and wellness industry. With strong exports, consistent profits and capacity expansion plans the company is well placed for growth. Though risks like forex and client concentration exist the IPO is looking good for long-term investors.
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