Shriram Food Industry Files IPO Draft to Raise Funds for Debt Reduction

Maharashtra-based rice exporter Shriram Food Industry has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to use the proceeds primarily to reduce its debt burden and strengthen its balance sheet.

IPO Details and Fund Utilization

The proposed IPO will include a fresh issue of up to 2.12 crore equity shares and an offer-for-sale (OFS) of 52 lakh shares by promoter entities Orient Dealtrade and Greta Industries.

According to the draft red herring prospectus (DRHP), the company intends to allocate ₹70 crore towards repayment of borrowings, while the remaining funds will be used for general corporate purposes.

As of July 2025, the company’s total borrowings stood at ₹154.4 crore.

Business Operations and Capacity

Shriram Food Industry, part of the Greta Group, operates a rice milling and processing facility in Nagpur, Maharashtra. The plant has a processing capacity of 76,800 metric tons per annum and a storage capacity of 50,000 metric tons.

The company exports rice to international markets and competes with listed peers such as Sarveshwar Foods, Chaman Lal Setia Exports, and GRM Overseas.

Financial Performance

The company’s financial track record has shown volatility in recent years:

In FY25, profit rose 195.3% year-on-year to ₹42.8 crore, compared to ₹14.5 crore in FY24.

Revenue during the same period more than doubled to ₹1,359.4 crore, up from ₹666 crore in the previous year.

However, in FY24, the company had reported a 57.3% decline in profit and a 47.1% fall in revenue compared to FY23.

Despite the ups and downs, the strong rebound in FY25 highlights improved demand and operational efficiency.

Choice Capital Advisors has been appointed as the merchant banker for the Shriram Food Industry IPO.

If approved, the IPO is expected to improve the company’s debt profile and support its expansion strategy. With global rice demand remaining strong, Shriram Food Industry aims to strengthen its position in both domestic and export markets.

Frequently Asked Questions (FAQs)

Q1. What is the purpose of Shriram Food Industry’s IPO?

The company plans to use the funds to repay ₹70 crore of debt and cover general corporate expenses.

Q2. How many shares will be offered in the IPO?

The IPO will consist of a fresh issue of up to 2.12 crore shares and an OFS of 52 lakh shares by promoters.

Q3. What is Shriram Food Industry’s debt as of July 2025?

The company reported total borrowings of ₹154.4 crore.

Q4. Where is Shriram Food Industry based and what is its business?

It is a Maharashtra-based rice exporter, operating a large milling and processing facility in Nagpur.

Q5. Who are the competitors of Shriram Food Industry?

Listed peers include Sarveshwar Foods, Chaman Lal Setia Exports, and GRM Overseas.