Shah Investor's House
IPO Size: Rs. 90 cr, entirely Fresh Issue
- For Rs. 60 cr working capital funding
Price band: Rs. 159-167 per share
M cap: Rs. 352 cr, implying 26% dilution
IPO Date: Mon 28th Sep to Wed 30th Sep 2026, Listing Tue 6th Oct 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Gujarat-based Traditional Stock Broker
Shah Investor’s Home is 30-year-old Ahmedabad, Gujarat based stock broker having 38,189 active clients across Mumbai and Gujarat. Based on Rs. 70 cr annual topline, this IPO appears looks like an SME IPO inadvertently listing on mainboard.
Funds for Margin Trading Funding
As a natural progression, company has increased focus on Margin Trading Funding (MTF), where interest is earned @ 18% pa. Company’s MTF book jumped from Rs. 21 cr as of 31.3.26 to Rs. 54 cr as of 31.7.26. It is undertaking IPO to fund additional funds towards MTF.
Declining Profits
Growth in active clients was just 1% in FY26, down from 13% in FY26. Thus, PAT dropped from Rs. 18 cr in FY24 to Rs. 13 cr in FY26 as revenue dropped from Rs. 78 cr in FY24, rising to Rs. 94 cr in FY25 and then contracting to Rs. 71 cr in FY26.
In FY26, of the Rs. 18 cr PBT, half came from other income of Rs. 9 cr. Even interest income of Rs. 24 cr in FY26, which is part of business operations, half comprises interest on delayed payment, which looks unsustainable.
Equity stood at Rs. 16 cr (face value Rs. 10 each) with a net worth of Rs. 181 cr as of 31.3.26.
Expensive Pricing
M cap of Rs. 352 cr discounts FY26 EPS of Rs. 8.4 at a historic PE multiple of 20x, which is expensive for small scale of operation, fluctuating financials and 7.6% RoE for FY26. Moreover, traditional stock brokers continue to face severe market share loss, and both their growth and survival is threatened by rapid technological adaptation and growing reach of discount brokers Groww, Zerodha, Angel among others, which calls for low PE mutliple.
