Shellz India Limited

Shellz India Limited (formerly Tifosi Foods Private Limited) was incorporated in 2012 and is engaged in the manufacturing and marketing of packaged confectionery products in India and select international markets. The company operates primarily in the impulse consumer packaged goods (CPG) segment, offering a diversified product portfolio comprising over 300 SKUs across five core categories: choco delights, baked treats, jellies, panned and sugar candies, and food and bakery ingredients. The company's core value proposition centers on providing affordable, high-quality confectionery items across impulse price points ranging from ₹1 to ₹10, supported by in-house end-to-end manufacturing and automated packaging.

The company's target demographic spans children, young adults, and mass-market retail consumers seeking frequent, low-unit-value treats. Key client segments include kirana stores, traditional retail outlets, modern trade formats (such as cash-and-carry stores including Metro and Lots), e-commerce platforms, and quick-commerce channels. Geographically, domestic sales constitute the vast majority of operations, with North India contributing 75.34% of consolidated revenue in Fiscal 2026 (led by Delhi NCR at 39.68% and Haryana at 17.88%), followed by East India (11.71%) and South India (9.30%). Export sales to international markets such as Nepal, Oman, and Spain accounted for 0.54% of revenue in Fiscal 2026 (₹103.06 Lakhs).

Manufacturing operations are anchored by two primary facilities located in Delhi and Sonipat, Haryana. The Delhi facility handles established confectionery lines, while the newly operational Sonipat unit has been developed as part of a consolidation and expansion strategy to support rising domestic and international demand, including in-house packaging material manufacturing. Certified production capacity utilization for the Delhi facility stood at 82.40% in Fiscal 2024, 85.10% in Fiscal 2025, and 88.60% in Fiscal 2026. For the Sonipat facility, commercial operations commenced during Fiscal 2026, achieving a capacity utilization rate of 42.15% in Fiscal 2026, which expanded to 51.30% during the three-month period ended June 30, 2026.

Product development and innovation are supported by a dedicated team of food and packaging technologists operating out of the company’s internal testing and development laboratory in Sonipat. Research and development efforts focus on formulating new flavor variants, developing moisture-resistant packaging formats (such as polymer cup packaging), and creating healthier product lines, including the "Better-for-You" range featuring "Tosca Oat Choco" (a cereal-based chocolate alternative containing approximately 33% less sugar than conventional chocolate bars). In-house machinery sourced from international suppliers in Turkey, China, and Indonesia enables flexible line re-configuration across diverse SKU sizes.

Sales and fulfillment are driven by a multi-tiered distribution network consisting of over 300 super stockists who distribute products to regional wholesalers, distributors, and retail kirana stores across multiple Indian states without requiring a direct, on-ground salesforce for retail execution. The company markets its consumer products primarily under two flagship brands: "Hugs" (representing 89.99% of Fiscal 2026 revenue from operations), which focuses on value chocolate, jelly, and biscuit-chocolate combinations, and "Tosca" (representing 1.41% of Fiscal 2026 revenue), which targets mass-premium urban consumers through modern trade and quick-commerce channels.

Financially, Shellz India Limited reported total income and net profits of ₹162.81 Cr and ₹5.25 Cr (FY24), ₹187.39 Cr and ₹8.30 Cr (FY25), ₹193.18 Cr and ₹13.37 Cr (FY26), and ₹47.43 Cr and ₹4.08 Cr (Q1 FY27). The company has demonstrated strong top-line and bottom-line growth, with net profit expanding at a CAGR of 59.52%. Meanwhile, total borrowings increased from ₹70.93 Cr in FY24 to ₹100.83 Cr in FY26, of which ₹22.00 Cr will be prepaid using the Fresh Issue proceeds. The company maintains an average EPS of ₹11.90 and an average RoNW of 21.40% over the last three fiscals.

Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.48 (NAV of ₹72.31 as of June 30, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.76. Attributing the historical earnings to the expanded post-issue equity base, the asking price reflects a Post-Issue P/E of approximately 41.11 (FY24), 26.02 (FY25), and 16.16 (FY26). A comparison with listed peers shows Annapurna Swadisht Limited trades at a P/E of 8.07x with an RoNW of 9.71%, indicating that Shellz India Limited commands a premium multiple driven by its significantly superior RoNW of 22.68% and higher EBITDA margin of 15.65%.

The issue is lead-managed by Socradamus Capital Private Limited, marking its 7th IPO mandate. Of its 6 completed public issues to date, three debuted at a discount while three listed at or above the offer price. As of October 12, 2026, five of these six issues are trading below their issue price. Bigshare Services Private Limited is acting as the Registrar to the Offer.

• 1 Kapil Garg
• 2 Shalini Garg