Table of content
Shubhshree Biofuels Energy IPO Introduction
ShubhShree Biofuels Energy Ltd. is a prominent player in the biomass supply chain management sector in India, established in 20131. The company focuses on sustainability and cutting-edge technology to recycle agricultural waste into biofuels. They produce and sell over 1.2 lakh metric tons of biofuel annually
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Brief about Shubhshree Biofuels Energy
Summary of the business of Shubhshree Biofuels Energy
Our Company 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. We are currently selling these pellets and briquettes to customers who are engaged in the business of recycling material, textile processing, pharmaceutical, metal etc.
Shubhshree Biofuels Energy History
Company was incorporated as ‘Shubhshree Bricks Private Limited’ under the Companies Act, 1956, pursuant to a certificate of incorporation dated April 23, 2013, issued by the RoC, Rajasthan, Jaipur having CIN as U26933RJ2013PTC042232. Further, pursuant to the special resolution passed by the shareholders in the Extra Ordinary General Meeting held on October 9, 2023 the name of our Company was changed from “Shubhshree Bricks Private Limited” to “Shubhshree Biofuels Energy Private Limited” and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Rajasthan, Jaipur dated October 30, 2023. Subsequently, our Company was converted from a private limited company to a public limited company, pursuant to a special resolution passed by the shareholders of our Company on January 18, 2024 and the name of the Company was changed from “Shubhshree Biofuels Energy Private Limited” to “Shubhshree Biofuels Energy Limited” vide fresh certificate of incorporation dated February 1, 2024 issued by the Registrar of Companies, Rajasthan, Jaipur.
| Year/F.Y. | Key Events / Milestone / Achievements |
| 2013 | Incorporation of the Company in the name of the “Shubhshree Bricks Private Limited”. |
| 2021 | Started the business of selling Biomass pellets and briquettes |
| 2023 | Crossed Revenue of Rs. 50 crore. |
| 2024 | Change in name of Company from Shubhshree Bricks Private Limited to Shubhshree Biofuels Energy Private Limited |
| 2024 | Company has purchased machinery on September 27, 2023 and started manufacturing from October, 2023 Onwards. |
| 2024 | Conversion of Company from Private Limited “Shubhshree Biofuels Energy Private Limited “ to Public Limited “Shubhshree Biofuels Energy Limited”. |
Shubhshree Biofuels EnergyShubhshree Biofuels Energy Promoters & Board of Directors
- Sagar Agrawal , Anurag Agarwal, Aastha Agarwal and Upasna Srivastava Dattani are the Promoters of Company.
Shubhshree Biofuels Energy Board of directors
| Name of Director | Designation |
| Sagar Agrawal | Chairman & Managing Director |
| Anurag Agarwal | Whole Time Director |
| Aastha Agarwal | Non-Executive Director |
| Upasana Srivastava Dattani | Non-Executive Director |
| Vijay Kumar Jain | Independent Director |
| Rajesh Jain | Independent Director |
Shubhshree Biofuels Energy Share Holding pattern
| Names | % Held |
| Promoters | |
| Sagar Agrawal | 33.32% |
| Aastha Agarwal | 14.09% |
| Anurag Agarwal | 14.09% |
| Upasana Srivastava Dattani | 33.32% |
| Sub Total | 94.82% |
| Promoters Group | |
| Kailash Chand Agarwal | 3.18% |
| Sagar Agrawal HUF | 1% |
| Kailash Chand Agarwal HUF | 1% |
Shubhshree Biofuels Energy Strength
- Location Advantage
- Customer Centric Approach
- Eco- friendly product
- Experienced Promoter and Management team
Shubhshree Biofuels Energy Strategies
- Capitalize on the government awareness towards use of biomass
- Focus towards increasing the share of manufactured goods
- Widening our customer base
- Increasing our geographical presence
Industry Outlook
CLASSIFICATION OF BIO FUELS
A relatively recently popularized classification for liquid biofuels includes “first-generation” and “second-generation” fuels. There are no strict technical definitions for these terms. The main distinction between them is the feedstock used. A first-generation fuel is generally one made from sugars, grains, or seeds, i.e. one that uses only a specific (often edible) portion of the above-ground biomass produced by a plant, and relatively simple processing is required to produce a finished fuel. First-generation fuels are already being produced in significant commercial quantities in a number of countries. Second-generation fuels are generally those made from non-edible lignocellulosic biomass,1 either non-edible residues of food crop production (e.g. corn stalks or rice husks) or non-edible whole plant biomass (e.g. grasses or trees grown specifically for energy).
First Generation Bio-Fuels
The most well-known first-generation biofuel is ethanol made by fermenting sugar extracted from sugar cane or sugar beets, or sugar extracted from starch contained in maize kernels or other starch-laden crops. Similar processing, but with different fermentation organisms, can yield another alcohol, butanol. Commercialization efforts for butanol are ongoing, while ethanol is already a well-established industry. Many countries are expanding or contemplating expanding their first-generation ethanol production, with Brazil and the United States having by far the largest expansion plans. From the perspective of petroleum substitution or carbon emissions mitigation efficiencies, the potential for most first-generation biofuels is limited. In addition, the significant amount of fossil fuel used to produce this ethanol substantially offsets the carbon emissions reductions from photosynthetic uptake of carbon by the corn plants.
Second Generation Bio fuels
Second-generation biofuels share the feature of being produced from lignocellulosic biomass, enabling the use of lower-cost, non-edible feedstocks, thereby limiting direct food vs. fuel competition. Second-generation biofuels can be further classified in terms of the process used to convert the biomass to fuel: biochemical or thermochemical. Second-generation ethanol or butanol would be made via biochemical processing, while all other second-generation fuels discussed here would be made via thermochemical processing. Second-generation thermochemical biofuels may be less familiar to most readers than second-generation ethanol, because there are no first-generation analogs. On the other hand, many second-generation thermochemical fuels are fuels that are already being made commercially from fossil fuels using processing steps that in some cases are identical to those that would be used for biofuel production. These fuels include methanol, refined Fischer-Tropsch liquids (FTL), and dimethyl ether (DME). Mixed alcohols can also be made from fossil fuels, but. The other thermochemical biofuel in is green diesel, for which there is no obvious fossil fuel analog. Unrefined fuels, such as pyrolysis oils, are also produced thermochemically, but these require considerable refining before they can be used in engines.
Second generation Biochemical Biofuels
The fuel properties of second-generation ethanol or butanol are identical to those of the first generation equivalents, but because the starting feedstock is lignocelluose, fundamentally different processing steps are involved in producing them. Second-generation biochemically-produced alcohol fuels are often referred to as “cellulosic ethanol” and “cellulosic biobutanol”.
Second generation Thermochemical Biofuels
Thermochemical biomass conversion involves processes at much higher temperatures and generally higher pressures than those found in biochemical conversion systems. Key intrinsic characteristics distinguishing thermochemical from biochemical biofuels are the flexibility in feedstocks that can be accommodated with thermochemical processing and the diversity of finished fuels that can be produced.
Government focus on Biomass Briquettes as a Substitute of Coal
Key highlights of revised policy of Ministry Of Power for biomass utilization for power generation through co – firing in coal based power plants
- Ministry of power vide its policy dated November 17, 2017 on biomass utilization for power generation has advised that all fluidized bed and pulverized coal units (coal based thermal power plants) except those having ball and tube mill of power generation utilities, public and private , located in India , to use 5-10% blend of biomass pellets made, Primarily, of Agro residue along with coal after assessing the technical feasibility.
- In order to further promote use of biomass pellets in coal based thermal power plants, the above Policy is further modified. The modifications in the above Policy are as under:
- All coal based thermal power plants of power generation utilities with bowl mill, shall on annual basis mandatorily use 5 percent blend of biomass pellets made, primarily, of agro residue along with coal with effect from one year of the date of issue of this guideline. The obligation shall increase to 7 percent with effect from two years after the date of issue of this order and thereafter.
- All coal based thermal power plants of power generation utilities with ball & race mill, shall on annual basis mandatorily use 5 % blend of biomass pellets (torrefied only) made, primarily, of agro residue along with coal. This is to be complied within one year starting from this order. Two years from the date of issue of this order and thereafter the obligation will increase to 7 percent.
- All coal based thermal power plants of power generation utilities with ball & tube mills, shall on annual basis mandatorily use 5 % blend of torrefied biomass pellets with volatile content below 22%, primarily made of agro residue along with coal. This is to be complied within one year.
- Generating Utilities having certain units under Reserve Shutdown or not being despatched due to MOD
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
The obligation shall increase to 7% with effect from FY 2025-26.
All coal based thermal power plants of power generation utilities with ball & race mills, shall on annual basis mandatorily use 5% blend of biomass pellets(torrefied only) 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.
All coal based thermal power plants of power generation utilities with ball & tube mills, shall on annual basis mandatorily use 5% blend of torrefied biomass pellets with volatile content below 22%, primarily made of agro residue along with coal with effect from FY 2024-25.
Shubhshree Biofuels Energy Business Data
Shubhshree Biofuels Energy Verticals
- biomass supply chain management
Shubhshree Biofuels Energy Revenue contribution from Geography presence
| State | 30-Sep-23 | 31-Mar- 23 | 31-Mar- 22 | 31-Mar- 21 | ||||
| Revenue | % | Revenue | % | Revenue | % | Revenue | % | |
| Uttar Pradesh | 3,139.16 | 72.61 | 3,405.12 | 58.09 | 456.26 | 57.62 | 0 | 0 |
| Haryana | 807.64 | 18.68 | 1,747.47 | 29.81 | 208.27 | 26.3 | 0 | 0 |
| Rajasthan | 184.95 | 4.28 | 491.82 | 8.39 | 3.36 | 0.42 | 18.49 | 100 |
| Delhi | 29.19 | 0.68 | 120.69 | 2.06 | 0 | 0 | 0 | 0 |
| Gujrat | 0 | 0 | 41.04 | 0.7 | 108.36 | 13.68 | 0 | 0 |
| Uttarakhand | 107.02 | 2.48 | 2.35 | 0.04 | 0 | 0 | 0 | 0 |
| Other | 55.18 | 1.28 | 53.11 | 0.91 | 15.57 | 1.97 | 0 | 0 |
Shubhshree Biofuels Energy Customer dependency
- Significant portion of revenue is generated from few of our key clients. The loss of any such key clients, significant reduction in the demand for our products from such clients or deterioration in their financial condition may adversely affect our business, financial condition, result of operations and cash flows.
- For the period September 30, 2023, FY 22-23, FY 21-22 and FY 2020-21 our top 5 customers contributed to 70.57%, 62.86%, 66.94%, and 92.49% of our revenue from operations. Further Company sold approx. 59.08%, 49.64%, 34.46% and Nil in period September 30, 2023, FY 2022-23, FY 2021-22, and FY 2020-21 respectively to our top one customer.
Shubhshree Biofuels Energy Machinery/Plants/Factory
- Khasra No 33/1, Village Pahadi , Teh. Niwai , District Tonk, Rajasthan
Shubhshree Biofuels Energy Capacity Utilisation
| Particular | October 2023 – February 2024 |
| Installed Capacity | 18460 |
| Actual Production | 12090 |
| Capacity Utilization | 65.49% |
Competition
Biomass fuel being a unique and global industry, we face competition from various domestic and international players. The industry is also unorganized and fragmented with many small and medium-sized companies and entities. On a regional basis, we compete with a large number of companies and different entities in all of our geographic markets. Due to industry’s fragmented nature, there is no authentic data available to our Company on total industry size and markets share of our Company vis-a-vis the competitors.
Peer companies comparison
- There are no listed companies in India that are engaged in a business similar to that of our company accordingly it is not possible to provide an industry comparison in relation to our company.
Shubhshree Biofuels Energy Group companies
- Trioventure Media Private Limited.
- Shubh Colonizers Private Limited.
Shubhshree Biofuels Energy SWOT ANALYSIS
- Strengths
- Rapid Growth: Significant increase in sales volume and revenue over the past few years.
- Strategic Location: Proximity to key customer markets in Northern India.
- Diversified Customer Base: Serving various industries such as recycling, textiles, pharmaceuticals, and metals.
- Focus on Sustainability: Emphasis on renewable energy sources aligns with global sustainability trends.
- Weaknesses
- Dependence on Key Customers: A significant portion of revenue comes from the top five customers.
- Limited Geographic Reach: Most sales are concentrated in Northern India.
- Transition Phase: Recently shifted from fly ash bricks to biomass fuel production, which may involve operational challenges.
- Opportunities
- Growing Demand for Biofuels: Increasing global emphasis on renewable energy sources.
- Expansion Potential: Opportunities to expand operations to other regions in India and internationally.
- Technological Advancements: Potential to leverage new technologies for more efficient biofuel production.
- Threats
- Regulatory Changes: Potential changes in environmental regulations could impact operations.
- Market Competition: Increasing competition from other biofuel producers.
- Supply Chain Disruptions: Dependence on agricultural waste could be affected by supply chain issues.
Shubhshree Biofuels Energy Business risk factors
- The biomass fuel industry is a relatively new concept and is yet to have a defined market as compared to conventional fuels, on account of which we have to face resistance from the potential customers to switch to biomass fuel.
- Significant portion of revenue is generated from few of our key clients. The loss of any such key clients, significant reduction in the demand for our products from such clients or deterioration in their financial condition may adversely affect our business, financial condition, result of operations and cash flows.
- For the period September 30, 2023, FY 22-23, FY 21-22 and FY 2020-21 our top 5 customers contributed to 70.57%, 62.86%, 66.94%, and 92.49% of our revenue from operations. Further Company sold approx. 59.08%, 49.64%, 34.46% and Nil in period September 30, 2023, FY 2022-23, FY 2021-22, and FY 2020-21 respectively to our top one customer.
- We generate almost entire of our sales from our operations in certain geographical regions especially Northern India and any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.
- Almost entire of our total sales are made in certain regions i.e. Northern part of India especially Haryana, Uttar Pradesh, Rajasthan and NCR region.
- Our business is subject to seasonal variations that could result in fluctuations in our results of operations.
Shubhshree Biofuels Energy Financials
Shubhshree Biofuels Energy Key Financial Ratios
| Particulars | 30-Sept.-2023 | 31- Mar- 23 | 31- Mar- 22 | 31 Mar ch 2021 | 31 March 2020 |
| Current Ratio | 2.3 | 2.15 | 1.38 | 2.99 | 5.7 |
| Debt-Equity Ratio | 0.38 | 0.36 | 3.46 | (3.7 3) | -3.07 |
| Debt Service Coverage Ratio | 1.22 | 3.45 | 0.65 | (0.0 3) | -0.05 |
| Return on Equity Ratio | 42.06% | 179.1 3% | 7125. 22% | 13% | 0.18 |
| Inventory turnover ratio | 212.92 | 722.9 5 | 75.73 | 1.44 | 0.59 |
| Trade receivables turnover ratio | 12.1 | 25.47 | 11.13 | 1.13 | 0.52 |
| Trade payables turnover ratio | 17.65 | 36.09 | 12.88 | 3.84 | – |
| Net capital turnover ratio | 9.77 | 20.37 | 16.82 | 0.85 | 0.31 |
| Net profit ratio | 3.16% | 4.14 % | 3.47% | – 10.6 3% | – 34.50 % |
| Return on Capital employed | 36.30% | 94.45 % | 50.71 % | – 4.57 % | -7.84% |
| Return on investment | 15.89% | 40.87 % | 14.80 % | – 4.12 % | -6.77% |
Shubhshree Biofuels Energy Key Performance Indicators
| Key Financial Performance | September 30, 2023 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Revenue from operations | 4323.13 | 5861.6 | 791.82 | 18.49 |
| EBITDA | 139.64 | 225.9 | 34.21 | 1.08 |
| EBITDA Margin | 3.23% | 3.85% | 4.32% | 5.83% |
| PAT | 136.61 | 242.38 | 27.46 | -1.97 |
| PAT Margin | 3.16% | 4.14% | 3.47% | -10.63% |
| RoE(%) | 42.06% | 179.13% | 7125.22% | 12.77% |
| RoCE (%) | 36.30% | 94.45% | 50.71% | -4.57% |
Shubhshree Biofuels Energy Assets & Liabilities
| Particular | 30-09-2023 | 31-03-2023 | 31-03-2022 | 31-03-2021 |
| EQUITY AND LIABILITIES | ||||
| Shareholders’ Funds | 393.11 | 256.5 | 14.12 | -13.35 |
| Non-Current Liabilities | 127.64 | 86.64 | 49.11 | 50.12 |
| Current Liabilities | 339.13 | 249.98 | 122.39 | 10.91 |
| Total | 859.88 | 593.12 | 185.61 | 47.67 |
| ASSETS | ||||
| Non-Current Assets | 78.3 | 55.44 | 16.15 | 15.02 |
| Current Assets | 781.59 | 537.68 | 169.46 | 32.66 |
| Total | 859.88 | 593.12 | 185.61 | 47.67 |
Shubhshree Biofuels Energy Profit & Loss
| Matrix | September 30,2023 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Revenue from operations | 4323.13 | 5861.60 | 791.82 | 18.49 |
| EBITDA | 139.64 | 225.90 | 34.21 | 1.08 |
| EBITDA Margin | 3.23% | 3.85% | 4.32% | 5.83% |
| PAT | 136.61 | 242.38 | 27.46 | (1.97) |
| PAT Margin | 3.16% | 4.14% | 3.47% | (10.63%) |
Shubhshree Biofuels Energy Cash Flow
(Amount in ₹ Lakhs)
| Particulars | September 30,2023 | March 31,2023 | March 31,2022 | March 31,2021 |
| Cash flow from operating activities | 51.61 | 98.82 | 38.08 | 2.57 |
| Net cash flow from investing activities | (55.13) | (45.91) | (3.43) | (2.33) |
| Net cash flow from financing activities | 28.35 | 32.10 | (1.01) | (3.70) |
Shubhshree Biofuels Energy Capital structure
| Particulars | Sept. 30, 2023 |
| Borrowings | |
| Short term debt | 21.66 |
| Long Term Debt | 127.06 |
| Total debts | 148.72 |
| Shareholders’ funds | |
| Equity share capital | 1.00 |
| Reserve and surplus – as restated | 392.11 |
| Total shareholders’ funds | 393.11 |
| Long term debt / shareholders’ funds | 0.32 |
| Total debt / shareholders’ funds | 0.38 |
IPO Details
Shubhshree Biofuels Energy IPO Details
| Feature | Details |
|---|---|
| IPO Type | Initial Public Offering (IPO) |
| Issue Size | ₹16.56 Crores |
| Issue Type | Fresh Issue |
| Face Value | ₹10 per share |
| Price Band | ₹113 – ₹119 per share |
| Minimum Application | 1200 shares (₹142,800) |
| Open Date | September 9, 2024 |
| Close Date | September 11, 2024 |
| Allotment Date | September 12, 2024 |
| Refund/Credit Date | September 13, 2024 |
| Listing Date | September 16, 2024 (Tentative) |
| Listing Exchange | NSE SME |
Object of the issue
| Particulars | Amt (Rs. in Lacs) |
| Funding Capital Expenditure towards installation of additional plant and machinery | 206.99 |
| To meet Working Capital requirements | [●] |
| General Corporate Purpose | [●] |
Litigation involved
Gray Market Premium
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