Snehaa Organics IPO Opens Aug 29; Analysts See Strong Long-Term Value

Mumbai, Aug 28

Snehaa Organics Ltd, a pioneer in green solvent and recycling solutions, is set to launch its Initial Public Offering (IPO) on August 29, 2025. Marking a first for the Indian markets, Snehaa Organics will become the first company in this segment to be listed on the exchange. The IPO has already attracted bullish recommendations from leading broking houses and research analysts.

The IPO is a book-built issue of ₹32.68 crore, comprising an entirely fresh issue of 26.79 lakh equity shares with a price band of ₹115–₹122 per share. The subscription window will remain open from August 29 to September 2, 2025, with allotment expected on September 3, 2025. Shares are proposed to be listed on the NSE SME platform on September 5, 2025. The minimum application size for retail investors is 2,000 shares (₹2.3 lakh), while the minimum bid for HNIs is 3 lots (3,000 shares) amounting to ₹3.66 lakh.

Financially, Snehaa Organics Ltd has delivered strong performance with revenue rising from ₹136.52 million in FY23 to ₹262.23 million in FY25 (14.21% CAGR), EBITDA margins improving to 43.52%, and PAT margins expanding to 27.98%. Robust return ratios (RoE 49.66% and RoCE 50.38%) underline its capital efficiency. At the post-IPO equity capital of ₹101.79 million, the issue is valued at 11.99x FY25 earnings and 0.70x P/BV, significantly below the Chemicals industry average P/E of 50x. The attractive valuation provides substantial upside potential and valuation comfort, which has led Khandwala Securities to recommend a ‘SUBSCRIBE’ rating for this IPO.”

Avinash Mentor Research Services, led by SEBI-registered analyst Avinash Gorakshakar, says,

“Snehaa Organics enjoys a strong track record of scaling up its turnover in the last two years and building deep B2B customer relationships. The biggest positive is that it is a fully grown recycling solvent player with strong networking, technical strengths, and a competitive edge. Operating across pharmaceuticals, agrochemicals, specialty chemicals, and paints, the company caters to diverse customer requirements. Promoters bring significant industry experience, and the management’s expertise has been instrumental in consistent growth. After the proposed IPO, the company’s net worth will total ₹44.78 crore, while post-IPO equity capital will stand at ₹10.18 crore. We believe Snehaa Organics will deliver consistent performance and offer an excellent long-term investment opportunity. We recommend SUBSCRIBE for long-term investors as per Khandwala Securities, a SEBI-registered broking and research firm.

The IPO proceeds will primarily fund growing working capital requirements (₹4,699.51 lakh projected for FY 2025–26) and support a strategic shift toward purchasing raw materials directly to scale sales and reduce reliance on job work.

With 60 KL kettles and 27 KL reactors already operational, Snehaa Organics is well-positioned to strengthen its leadership in sustainable solutions, drive growth, and create long-term stakeholder value.

EoM.