About the Company:
Shubhshree BioFuels Energy Ltd is engaged in the business of supplying of biomass fuels, which includes biomass pellets and briquettes.
These biomass fuels are an alternative source of energy which are basically used in commercial and industrial heating, cooking fuel, industrial burning and electricity generation, as an alternative to fossil fuels like coal, firewood, lignite, Agri-waste etc.
The briquettes are majorly used for industrial purposes like running boilers etc. and the pellets are majorly used as cooking fuel or commercial purposes.
Company is currently selling these pellets and briquettes to customers who are engaged in the business of recycling material, textile processing, pharmaceutical, metal etc.
These Biomass pellets and briquettes are built from recycled green waste, producing less greenhouse gas emission. The main raw material used in the manufacturing of biomass fuels include Agri-waste, saw dust, farm waste etc.
These raw materials are procured from the farmers and nearby sources either directly or through dealers and brokers.
Company is also involved in the supplying of the biomass pellets and briquettes, which are procured from different vendors who are engaged in the manufacturing of these biomass fuels.
Company currently sells majority of its products in the Northern States of India among which especially Haryana, Uttar Pradesh, Rajasthan and NCR region being the highest contributor to our revenue from operations.
Company’s Customers:
- Orient Bell Tiles.
- Sun Pharmaceuticals Ltd
- Patanjali.
- Lupin.
- Bikano.
- Hindustan Zinc.
Products Manufactured by the Company:
- Biomass Pellets.(Mustard Pellet, Sawdust Pellets, Groundnut Pellets)
- Biomass fuel Briquettes.(Mustard Briquettes, Sawdust Briquettes, Groundnut Briquettes)
What exactly is Biomass pellet or briquettes?
Biomass pellet or briquettes are cylindrical and condensed form of organic material derived from various renewable sources. These pellets serve as an alternative to traditional fossil fuels and play a significant role in addressing energy and environmental challenges.
These biomass fuels act as renewable energy source, reduce emissions, helps in utilization of the waste materials and are energy efficient.
Company has increased the Biomass business exponentially.
During the Fiscal year 2022 company sold around 9700 tonnes of biomass fuels which increased to around 59400 tonnes in fiscal year 2023 representing as increase of over 500% and further increased to around 52400 tonnes during the period April 2023 to September 2023.
Recently Company has received some Purchase orders.
Further, the company has recently received a purchase order for short term supply of biomass approximately 31600 tonnes to a company engaged in metal industry for a period of 5 months and also received an order for supply of biomass pellets approximately 14600 tonnes for a period of 1 year from a power sector company.
Company’s Geographical Revenue Break up: (in Lakhs)
Ministry of Power has mandated mandatorily use minimum biomass pellets.
In order to increase the use of Biomass pellets in briquettes, the Ministry of Power has mandated that all coal based thermal power plants of power generation utilities with bowl mills, shall on annual basis mandatorily use minimum 5% blend of biomass pellets made, primarily, of agro residue along with coal with effect from FY 2024-25. The obligation shall increase to 7% with effect from FY 2025-26.
Company’s History:
Company was incorporated in 2013 post incorporation our company was undertaking the business of manufacturing and supplying of building and construction material like fly ash bricks etc.
Later, during December 2021, the company discontinued the business of fly ash bricks and foray into the business of supplying of biomass pellets and biomass briquettes.
Looking at the market response and opportunity in this business, company established a manufacturing facility located at Village Pahadi , District Tonk Rajasthan from October 2023, where we have installed 3 briquettes cum pelleting machines, one of which is owned by us and the rest 2 are taken on rent along with the premises, having a combined capacity of 132 tonnes per day.
Company’s Key Financial Performance:(in Lakhs)
Management Team:
- Mr. Sagar Agrawal (Designation: Chairman & Managing Director)
- Mr. Anurag Agarwal (Designation: Whole Time Director)
Company’s Promoters:
Promoters of the company are Anurag Agarwal, Aastha Agarwal and Sagar Agrawal. Sagar Agrawal is a Promotor having an experience of 10 Years and Anurag Agarwal and Aastha Agarwal having an experience of 2.5 Years in the field of Biomass fuels.
The knowledge and guidance of the promoters and directors have been instrumental for the growth and development of the Company.
Objectives of the Issue:
Fresh Issue: (Will be Updated)
- Funding Capital Expenditure towards installation of additional plant and machinery.
- To meet working capital requirements.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding Capital Expenditure towards installation of additional plant and machinery. | 20.6 cr |
Note: Company has installed 3 briquettes cum pelleting machines, one of which is owned by us and the rest 2 are taken on rent along with the premises, having a combined capacity of 132 tonnes per day.
Company propose to utilize Rs. 20.6 crores towards purchase and installation of additional plant and machinery which will further enhance the installed capacity of the company.
Positives for the Company:
Location Advantage in Procurement of Raw Material.
- Company procures most of the raw material requirements relating to agricultural waste from the farms which are located at nearby locations. The availability of the raw material at the farmland in the nearby locations of our factory, helps in faster and cost effective procurement of agricultural waste.
Eco- friendly product.
- Company provides eco-friendly product viz. Bio- pellets and briquettes which are considered to be a good substitute of fossil fuels in those industries where use of fossil fuels such as coal, gas, lignite, diesel etc. is made in large quantities.
- Globally, biomass fuels assume importance due to growing energy security and environmental concerns. Bio fuels seek to provide a higher degree of national energy security in an environmentally friendly and sustainable manner by supplementing conventional energy resources, reducing dependence on imported fossil fuels and meeting the energy needs of India’s urban and vast rural population.
Company plans to Capitalize on the government awareness towards use of biomass.
- In order to increase the use of Biomass pellets in briquettes, the Ministry of Power has mandated that all coal based thermal power plants of power generation utilities with bowl mills, shall on annual basis mandatorily use minimum 5% blend of biomass pellets made, primarily, of agro residue along with coal with effect from FY 2024-25. The obligation shall increase to 7% with effect from FY 2025-26.
Company Plans to Widen the customer base.
- As part of growth strategy, company plans to expand the sales with the existing customers along with finding new customers.
- Further, due to our continuous efforts towards adding new customer, the company has recently received a purchase order for short term supply of biomass approximately 31600 tonnes to a company engaged in metal industry for a period of 5 months and also received an order for supply of biomass pellets approximately 14600 tonnes for a period of 1 year from a power sector company.
- Thus, by including new customers in our basket company can widen the customer base and reduce the reliance on limited number of customers.
Company plans to increase the geographical presence.
- Company currently sells majority of its products in the Northern States of India among which especially Haryana, Uttar Pradesh, Rajasthan and NCR region being the highest contributor to our revenue from operations.
- Company intends to cater to the increasing demand of our existing customers and also to increase our existing customer base by enhancing the reach of our products in different parts of the country.
- Furthermore, Company has deployed various dealers, marketing representatives for increasing our sales. Company proposes to enter into new geographies and increase the marketing and sales team which can focus on different regions and also maintain and establish relationship with customers.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 0.18 | 7.91 | 59.71 | 43.86 |
| Net Profit | (-0.01) | 0.27 | 2.42 | 1.36 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | Will be Updated |
| Equity Shares Offered (OFS) | Will be Updated |
| Total Equity Shares Offered (Fresh + OFS) | Will be Updated |
| Equity Shares Prior to the Issue | Will be Updated |
| Equity Shares after the Issue | Will be Updated |
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.30 | TBA | 94.50% | 6.66 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Shubhshree BioFuels Energy Ltd has firmly established itself in the biomass fuels industry, specializing in supplying biomass pellets and briquettes to a diverse range of customers across various sectors, including recycling, textile processing, pharmaceuticals, and metalworking. The company’s exponential growth in the biomass business is testament to its commitment to sustainability and renewable energy sources.
Recently securing a purchase order for short-term biomass supply underscores the growing demand for their products. Additionally, with the Ministry of Power mandating the minimum use of biomass pellets, the company is poised for even greater success in the future. This regulatory push aligns perfectly with Shubhshree BioFuels Energy Ltd’s core business, positioning it favorably for continued expansion. Considering the promising outlook for the company and the increasing importance of renewable energy, Markets Guruji recommends investing in Shubhshree BioFuels Energy Ltd’s IPO as it presents an opportunity for investors to participate in a business with strong growth potential and a commitment to environmental sustainability. |
| Company Contact Info: |
|---|
| Shubhshree BioFuels Energy Ltd Plot No. 8 Ganesh Vihar B, Pandit T.N Mishra Marg, Nirman Nagar, Shyam Nagar, Jaipur, Rajasthan, India, 302019 Tel. No.: +91 9799998880 Email: shubhshree@biomassfuel.co.in Website: www.shubhshreebiofuels.co.in |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited Address: S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093, Maharashtra, India. Telephone: +91 22 6263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, India Tel. No.: +91- 022- 49060000; Email: ib@hemsecurities.com Website: www.hemsecurities.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
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