Archive · 13 Sep 2026
SML Ltd Weighs IPO to Fund New Chemical Entities
SML Ltd makes products that help farmers grow crops.
The company is studying whether to sell shares to the public in an IPO within two or three years.
It may use the money to develop new crop-protection chemicals called new chemical entities.
One new chemical could be ready for the market soon, but developing one can cost $70 million-$80 million.
SML currently has little or no debt and about ₹450-470 crore in cash.
It also wants to use its money for acquisitions and partnerships.
The company lowered its sales goal because of poor monsoon rainfall, tariffs and shipping problems.
It is also expanding into crop nutrition, crop protection and biological products.
SML Ltd is evaluating a stock market listing within two to three years to help fund new chemical entities, though no decision has been made.
Managing Director Bimal Shah said one proprietary molecule is expected to reach the market soon, with each NCE potentially costing $70 million-$80 million to develop.
The debt-free company has approximately ₹450-470 crore in cash for acquisitions, regulatory assets, strategic tie-ups and backward integration.
SML lowered its current-year revenue target to about ₹1,600 crore from ₹1,800 crore because of weaker monsoons, US tariffs and shipping disruptions.
The company aims to increase its specialty sulphur-fertilizer market share from 30-40% to 50-60% by 2030.
- Who
- SML Ltd and its Managing Director Bimal Shah.
- What
- SML Ltd is evaluating a possible stock market listing to support new chemical entity development and wider agri-input expansion.
- When
- The company is considering a listing within two to three years and expects clearer direction within the next one to two years; the report was published September 13, 2026.
- Where
- SML Ltd is based in Mumbai, India, and operates internationally in more than 80 countries.
- Why
- Developing proprietary new chemical entities requires substantial investment, while the company is also expanding its crop nutrition, crop protection and biologicals businesses.
Growth and Innovation Case
Funding and Market Constraints
Potential IPO
Growth and Innovation Case
A listing could provide capital for expensive new chemical entity research and support SML Ltd's expansion into crop nutrition, crop protection and biologicals.
Funding and Market Constraints
SML Ltd has not decided to pursue an IPO and currently has a near debt-free balance sheet with approximately ₹450-470 crore in cash.
Revenue outlook
Growth and Innovation Case
The revised target of about ₹1,600 crore would still exceed the roughly ₹1,200-1,300 crore achieved a year earlier, supported partly by 15-20% price increases.
Funding and Market Constraints
The company cut its earlier ₹1,800 crore target because of weaker monsoon rainfall, US tariffs and shipping disruptions linked to geopolitical conflict.
Specialty sulphur products
Growth and Innovation Case
SML Ltd says its patented micronized sulphur and sulphur-zinc products require lower application rates and aims to raise market share to 50-60% by 2030.
Funding and Market Constraints
These products cost more per unit than conventional alternatives such as gypsum and ammonium sulphate, and current production capacity is only about 50-55% utilized.
- Potential IPO timing
- Within two to three years, subject to further evaluation.
- NCE development cost
- Approximately $70 million-$80 million for a single new chemical entity.
- Cash position
- Roughly ₹450-470 crore, with the company described as near debt-free.
- Current-year revenue target
- About ₹1,600 crore, reduced from the earlier target of ₹1,800 crore.
- International business
- More than 80 countries; targeted revenue is ₹700-800 crore this year and ₹1,000 crore within two years.
- Sulphur-fertilizer market share
- Approximately 30-40% currently, with a goal of 50-60% by 2030.
- Production utilization
- About 50-55%, with full utilization expected by 2028-29.