Snehaa Organics Ltd IPOSNEHAA

The IPO opens on 29 Aug 2025 & closes on 02 Sept 2025.

In 2017, Promoters initially acquired 'M/s Snehaa Pharma Chemicals', as a partnership firm. Further, in July 2022 'M/s Snehaa Pharma Chemicals' was converted from partnership firm to a Private Limited Company in the name of 'Snehaa Organics Private Limited'. Thereafter, the status of the Company got converted into a Public Limited Company and a fresh Certificate of Incorporation was issued on January 07, 2025 by the Registrar of Companies, CPC Manesar Haryana reflecting the change in Company name to 'Snehaa Organics Limited'. Presently, Company specializes in the handling, purification, and recycling of solvents. Established in 2010, the company has built a strong reputation for delivering reliable recovered solvents to a diverse customer base. In 2019, Company became a part of the Vestro Group, marking a significant phase in its development. This acquisition brought improvements across various operational areas, including production, technology, environmental practices, and market expansion. With access to Vestro Group's resources and expertise, it has continued to advance its capabilities and industry presence. Additionally, the company engages in direct trading of solvent, sourcing raw materials from suppliers, conducting quality assessments, and sold them in the open market. Company is planning an IPO of 26,79,000 equity shares of face value of Rs 10/- each through fresh issue.

Snehaa Organics Ltd IPO will close on 02 Sept 2025.

<ul><li>Experienced and Qualified Management and Employee base.</li><li>Strong and Consistent Financial Performance.</li><li>Growing customer base.</li><li>Scalable and reliable business model.</li><li>Experienced Promoters and Senior Management with extensive domain knowledge.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Nandigala Venkata Sai Harish</td> <td>3749995</td> <td>49.99</td> <td>3749995</td> <td>36.84</td> </tr> <tr> <td>2</td> <td>Nandigala Venkata Sai Kiran</td> <td>3750000</td> <td>50</td> <td>3750000</td> <td>36.84</td> </tr> <tr> <td>3</td> <td>Samhitha Reddy Tera</td> <td>---</td> <td>---</td> <td>---</td> <td>---</td> </tr> </tbody> </table>

<ul><li>We derive a significant part of our revenue from selected customers. If one or more of such customers choose not to source their requirements from us, our business, financial condition and results of operations may be adversely affected.</li><li>The property used by the Company for the purpose of its warehousing and Registered office is not owned by us. Any termination of the relevant rent agreement in connection with such property or our failure to renew the same could adversely affect our operations.</li><li>The Company is dependent on few suppliers for purchase. Loss of any of these large suppliers may affect our business operations.</li><li>We provide our goods majorly in Telangana, any adverse changes in the conditions affecting this region can adversely affect our business, financial condition and results of operations.</li><li>We have in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the Shareholders.</li><li>We are subject to certain risks consequent to our operations involving our business process, usage and storage of various hazardous substances.</li><li>Our insurance coverage may not adequately protect us against all losses or the insurance cover may not be available for all the losses as per the insurance policy, which could adversely affect business, financial condition and results of operations.</li><li>Our Company, Promoters, and Directors are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, financial condition, cash flows and results of operations.</li><li>Our existing manufacturing facility is concentrated in a single region i.e., Sangareddy, Telangana, any inability to operate and grow our business in this particular region may have an adverse effect on our business, financial condition, results of operations, cash flows and future business prospects.</li><li>Non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, may adversely affect our business, financial condition and results of operations.</li><li>Frequent changes in Statutory Auditor of our company may raise concerns regarding financial reporting, governance, and compliance.</li><li>Our Company's logo is not registered as on date of Draft Red Herring Prospectus. We may be unable to adequately protect our intellectual property. Furthermore, we may be subject to claims alleging breach of third-party intellectual property rights.</li><li>Our Company had filed certain ROC forms with delayed fees and company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to the delayed filings. Any penalty or action taken by any regulatory authority in future, for non-compliance with provisions of corporate or any other law could impact the financial position of the Company.</li><li>We have a large work force and our employee benefits expense is one of the components of our fixed operating costs. An increase in employee benefits expense could reduce our profitability. Further, our operations could be adversely affected by work stoppages, shortage of labour, or increased wage demands by our employees or any other kind of disputes with our employees</li><li>We have very short span of operating history as company.</li><li>Our performance may be adversely affected if we do not manage our inventory or working capital successfully</li><li>Our Company does not have any comparable listed industry peers</li><li>Our success largely depends upon the knowledge and experience of our Promoters and Directors as well as our ability to attract and retain skilled personnel. Any loss of our Directors, Senior Management or our ability to attract and retain them and other skilled personnel could adversely affect our business, financial condition and results of operations.</li><li>Industry information included in this Draft Red Herring Prospectus has been derived from an industry report exclusively commissioned and paid for by our Company.</li><li>The demand for our business process is dependent on the performance of pharmaceuticals industry as a whole, any downturn or cyclical fluctuation in the pharma sector could materially affect our business and financial performance.</li><li>There have been instances of delay in GST and ESIC filings by our Company. We may be subject to regulatory actions or penalties for any such delay and our business, financial condition and reputation may be adversely affected.</li><li>We require various licenses and approvals for undertaking our businesses and the failure to obtain or retain such licenses or approvals in a timely manner, or at all, may adversely affect our operations.</li><li>We require working capital for our smooth day-to-day operations of business and any discontinuance or our inability to acquire adequate working capital timely and on favorable terms may have an adverse effect on our operations, profitability and growth prospects.</li><li>The Objects of the Issue for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.</li><li>In addition to our existing indebtedness for our existing operations, we may incur further indebtedness during the course of business. We cannot assure that we would be able to service our existing and/ or additional indebtedness.</li><li>Our Promoters and certain of our directors may be interested in our Company other than remuneration and reimbursement of expenses.</li><li>The directors of our company do not have prior experience of the listed company and the requirements of being a listed company may strain our resources.</li><li>We have certain contingent liabilities which may adversely affect our financial condition</li><li>We are dependent on third party transportation and logistics service providers. Any increase in the charges of these entities could adversely affect our business, results of operations and financial condition.</li><li>The average cost of acquisition of Equity Shares by our Promoter could be lower than the Issue Price.</li><li>We have issued equity shares pursuant to a bonus issue in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price, and we will be eligible to issue equity shares pursuant to a bonus issue only when we have sufficient reserves</li><li>There may be potential conflict of interests between Our Company, Promoter Group Entities, Group Companies/Entities which are in similar businesses to ours, and this may result in potential conflict of interest with us.</li><li>Our manufacturing facilities are dependent on adequate and uninterrupted supply of electricity, fuel and water. Any shortage or non-availability of such essential utilities could lead to disruption in operations, higher operating cost and consequent decline in our operating margins.</li><li>Any variation in the utilization of our Net Proceeds would be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>The requirements of being a publicly listed company may strain our resources.</li><li>We cannot assure payment of dividends on the Equity Shares in the future. Our ability to pay dividends in the future will depend upon our earnings, financial condition, cash flows and capital requirements.</li><li>We have been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against our Company which could impact our financial and operational performance and reputation.</li></ul>

The Issue type of Snehaa Organics Ltd is Book Building - SME.

The minimum application for shares of Snehaa Organics Ltd is 2000.

The total shares issue of Snehaa Organics Ltd is 2679000.

Initial public issue of 26,79,000 equity shares of face value Rs. 10/- each of Snehaa Organics Limited. ("Snehaa" or the "company" or the "issuer") for cash at a price of Rs. 122/- per equity share ("issue price") including a share premium of 112/- per equity share), aggregating to Rs. 32.68 crores ("the issue"), out of which, 1,34,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 122/- per equity share aggregating to Rs. 1.63 crores will be reserved for subscription by market maker ("market maker reservation portion"). The issue less the market maker reservation portion i.e. issue of 25,45,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 122/- per equity share aggregating to Rs.31.05 crores is hereinafter referred to as the "net issue". The issue and the net issue will constitute 26.32% and 25%, respectively of the post issue paid up equity share capital of the company.