Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Snehaa Organics Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Snehaa Organics Ltd
Industry: Chemicals
Listing At: NSE SME
Overview:
Snehaa Organics Ltd., a company based in Hyderabad, Telangana, has established itself as a notable player in the solvent recycling industry. Since its founding in 2017, the company has focused on the handling, purification, and recycling of solvents with a commitment to sustainability and innovation. Following a management takeover in 2019, Snehaa Organics has grown significantly, expanding its facilities with state-of-the-art purification plants and forming strategic partnerships with key industry players like Glochem Industries and MSN Group.
The company’s success is attributed to its eco-friendly practices and the leadership of its directors, Kiran Nandigala and Harish Nandigala. Kiran, the Technical Director, provides expertise in the technical aspects of solvent recovery, while Harish, the Marketing Director, oversees strategic marketing and customer relations. The company’s efforts have earned the trust of a diverse clientele and positioned it as a reliable provider of high-quality recovered solvents.
Shariah Status
The IPO is Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Fri, Aug 29, 2025 |
| IPO Close Date | Tue, Sep 2, 2025 |
| Tentative Allotment | Wed, Sep 3, 2025 |
| Initiation of Refunds | Thu, Sep 4, 2025 |
| Credit of Shares to Demat | Thu, Sep 4, 2025 |
| Tentative Listing Date | Fri, Sep 5, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 2, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 2,000 | ₹2,44,000 |
| Individual investors (Retail) (Max) | 2 | 2,000 | ₹2,44,000 |
| S-HNI (Min) | 3 | 3,000 | ₹3,66,000 |
| S-HNI (Max) | 8 | 8,000 | ₹9,76,000 |
| B-HNI (Min) | 9 | 9,000 | ₹10,98,000 |
Financials
Snehaa Organics Ltd.’s financial performance from the financial year ending March 31, 2023, to March 31, 2025, shows a consistent increase across several key metrics. The company’s revenue grew by 10% and profit after tax (PAT) rose by 101% between 2024 and 2025. Over the three-year period, total income increased from ₹20.41 crore in 2023 to ₹26.29 crore in 2025. Assets more than doubled, growing from ₹10.80 crore in 2023 to ₹30.06 crore in 2025. Net worth also saw significant growth, climbing to ₹14.78 crore in 2025 from just ₹3.78 crore in 2023, while total borrowing increased to ₹9.09 crore.
KPI
| KPI | Values |
|---|---|
| ROE | 49.66% |
| ROCE | 50.38% |
| Debt/Equity | 0.61 |
| RoNW | 49.66% |
| PAT Margin | 27.98% |
| EBITDA Margin | 43.52% |
| Price to Book Value | 0.83 |
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.