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Chemkart India IPO 2025 – A Complete Guide and Analysis for Indian Investors

Chemkart India Limited is hitting the markets with its much-anticipated Initial Public Offering (IPO) this July 2025, offering Indian investors a chance to invest in the country’s rapidly growing nutraceutical and health supplement industry. This detailed analysis explores everything you need to know about the Chemkart India IPO, including its price band, lot size, subscription dates, objectives of the issue, company background, financial performance, valuation, risks, and an honest opinion about whether you should consider applying.

This guide is designed for all types of Indian investors – retail, HNI, or institutional – who want to understand the nuances of this SME IPO on the BSE SME exchange. It also serves as a helpful resource for anyone seeking to learn about IPO investing in India in a clear, simple, and comprehensive way.

Who is Chemkart India Limited?

Chemkart India Limited is a Mumbai-based nutraceutical company offering a broad range of health and sports nutrition products. Unlike many generic supplement traders, Chemkart India positions itself as a one-stop destination for diverse, science-backed nutritional, health, and sports supplements that combine nutritional value with specific health benefits.

Their product range spans seven major categories: Amino Acids, Health Supplements, Herbal Extracts, Nucleotides, Proteins, Sports Nutrition, and Vitamins. These categories cater to India’s growing health-conscious customer base, which includes athletes, fitness enthusiasts, older adults seeking wellness products, and mainstream consumers looking for immunity-boosting solutions.

India's health and nutrition supplement market is expected to witness a strong double-digit growth rate over the coming years, driven by rising disposable incomes, awareness of health and fitness, urbanisation, and lifestyle changes. Chemkart India aims to capitalise on this opportunity by expanding its manufacturing capabilities and product distribution networks.

Company Background and Promoters

Chemkart India is promoted by Mr. Ankit Shailesh Mehta, Ms. Parul Shailesh Mehta, and Mr. Shailesh Vinodrai Mehta. The lead promoter, Ankit Mehta, is a first-generation entrepreneur who has around 4 years of experience in the nutraceutical industry, while Ms. Parul Mehta brings 9 years of experience. Although relatively young in industry tenure, the promoters have successfully built a business with robust financial growth in a highly competitive segment.

Their approach reflects a modern, entrepreneurial mindset, with an emphasis on product diversification, supply chain efficiency, and brand-building. This resonates with India’s new generation of nutraceutical businesses aiming to break away from unorganised, low-margin, commodity-style trading.

Chemkart India’s Product Portfolio

Chemkart’s range of nutritional supplements includes:

• Amino Acids: Essential building blocks for protein synthesis, targeting athletes and fitness-conscious customers.

• Health Supplements: General wellness products catering to immunity, digestion, and lifestyle disorders.

• Herbal Extracts: Natural ingredients appealing to the Ayurveda and herbal wellness segment.

• Nucleotides: Biologically important molecules, a niche but growing market for functional foods.

• Protein: Both plant and animal-based proteins to meet varied dietary needs.

• Sports Nutrition: Targeted formulas for pre-workout, post-workout, and performance enhancement.

• Vitamins: A range of multivitamins and single-vitamin supplements.

Their value proposition lies in diverse offerings that can tap multiple growth segments within the nutraceutical industry. This diversification can be viewed as a strength, reducing dependence on any single category.

IPO Details – Dates, Price Band, and Size

The Chemkart India IPO is structured as a Book Built Issue with a total size of ₹80.08 crores. It comprises:

• Fresh Issue: 26 lakh shares worth ₹64.48 crores.

• Offer for Sale (OFS): 6.29 lakh shares worth ₹15.60 crores.

The price band is fixed at ₹236 to ₹248 per share, with investors required to bid in multiples of 600 shares per lot. Notably, the minimum application size for retail investors is 2 lots (1,200 shares), meaning a minimum investment of ₹2,83,200.

The IPO opens for subscription on July 07, 2025, and closes on July 09, 2025. Allotment is likely to be finalised on July 10, 2025, with shares expected to list on the BSE SME platform on July 14, 2025.

Anchor Investors and Institutional Interest

Chemkart India has already raised ₹22.60 crores from Anchor Investors at ₹248 per share. This is a positive sign, suggesting a level of institutional confidence in the company’s business model and financial trajectory. Anchor allocation typically comes from the Qualified Institutional Buyers (QIB) portion, which adds credibility to the issue.

Grey Market Premium (GMP) Trend

As of June 30, 2025, the Grey Market Premium (GMP) for Chemkart India IPO is ₹22, implying an expected listing price of around ₹270 per share, which translates to potential listing gains of 8.87%. However, investors should remember that GMP is an unofficial, unregulated indicator that fluctuates based on demand and market sentiment. It is useful for gauging interest but should not be the only factor in an investment decision.

Live Subscription Status

As of 12:00 PM on July 09, 2025 (final day of subscription), the IPO was subscribed 1.69 times overall. This is a moderate response, indicating reasonable but not frenzied demand. Investors should watch for the final subscription numbers across categories like Retail, HNI, and QIB to assess the depth of demand.

Use of IPO Proceeds

Chemkart India plans to use the net proceeds from the Fresh Issue for:

• ₹34.68 crore for investment in its Wholly Owned Subsidiary (WOS), Easy Raw Materials Pvt Ltd, for setting up a new manufacturing facility.

• ₹20 crore for repayment/prepayment of certain borrowings.

• Remaining balance for general corporate purposes.

This allocation reflects the company’s intention to strengthen its manufacturing capabilities, reduce debt, and support future growth. Investing in its own manufacturing unit also suggests a move towards vertical integration and better quality control, which can boost margins over time.

Financial Performance and Analysis

Let’s dive into Chemkart India’s financials, which reveal a consistent growth trajectory:

• Revenue from Operations: ₹20,545.63 lakh in FY25, ₹13,282.77 lakh in FY24, ₹13,168.62 lakh in FY23.

• EBITDA: ₹3,494.10 lakh in FY25, ₹2,171.29 lakh in FY24, ₹1,135.83 lakh in FY23.

• Profit After Tax (PAT): ₹2,425.75 lakh in FY25, ₹1,451.82 lakh in FY24, ₹766.02 lakh in FY23.

This performance shows steady, impressive growth. EBITDA margin improvement also suggests operational efficiency gains, which is important in a competitive industry with price pressures.

Valuation Metrics

• Pre-Issue EPS: ₹25.54

• Post-Issue EPS: ₹20.05

• Pre-Issue P/E Ratio: 9.71x

• Post-Issue P/E Ratio: 12.37x

Compared to typical industry valuations for nutraceutical companies (often above 20x P/E), Chemkart India’s pricing appears fair to modestly attractive for investors.

Return Ratios:

• ROCE (FY24): 49%

• ROE (FY24): 59%

• RoNW (FY24): 45.52%

These are very strong return metrics, suggesting the company has historically delivered high returns on its capital and equity, indicating efficient use of investor money.

Management Strength

Promoted by first-generation entrepreneurs like Ankit Mehta, the company benefits from focused leadership with industry experience. While not a decades-old player, this brings an entrepreneurial hunger to scale up operations, innovate, and tap into India’s booming health-conscious consumer base.

Risks to Consider

Investors should also weigh the risks:

• The nutraceutical market, while growing, is competitive and price-sensitive.

• Regulatory changes in food safety or supplements can impact margins.

• Relatively young promoters may need to scale management systems for larger operations.

• SME stocks can be illiquid post-listing, making exit tricky for large investors.

Expert Opinion and Recommendation

Given the financial track record, planned expansion, strong return ratios, and reasonable pricing, Chemkart India’s IPO looks fairly valued with moderate listing gains potential. The GMP indicates around 8-9% listing premium, which is neither massive nor negligible.

Our recommendation is that risk-tolerant investors seeking exposure to India’s nutrition and health supplement sector may Apply for potential listing gains and long-term growth opportunity. Conservative investors should consider the SME market’s inherent liquidity risks and competitive pressures before investing.

Conclusion

Chemkart India IPO offers investors a chance to tap into India’s booming health supplement market through a company with diverse products, proven growth, and ambitious expansion plans. While the IPO is not without risks, the pricing appears fair, with potential for both short-term listing gains and long-term wealth creation if the company executes its plans well.

As with any investment, investors should do their own due diligence, consider their risk profile, and consult with their advisors. But for those willing to take the SME route in India’s IPO boom, Chemkart India is worth a close look.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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The Current active IPO are CFF Fluid Control, Anthem Biosciences, Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India.

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