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Chemkart India IPO: Everything You Need to Know

Chemkart India Limited is launching its initial public offering (IPO) on the BSE SME platform. With the subscription window opening July 7, 2025, this ₹80.08 crore IPO offers retail and institutional investors a chance to invest in a B2B food and health ingredients supplier with strong growth credentials.

This article explains Chemkart India IPO details, company profile, financials, competitive advantages, risk factors, and how investors can participate.

IPO Details and Structure

IPO Type: Bookbuilding (Fresh Issue + Offer for Sale)
Total Issue Size: ₹80.08 crore

• Fresh Issue: 26.00 lakh shares (~₹64.48 crore)

• Offer for Sale (OFS): 6.29 lakh shares (~₹15.60 crore)

Price Band: ₹236–248 per share
Face Value: ₹10 per share
Lot Size: 600 shares per lot

Important Dates:

• IPO Opens: 7 July 2025 (Monday)

• IPO Closes: 9 July 2025 (Wednesday)

• Tentative Allotment Date: 10 July 2025 (Thursday)

• Tentative Listing Date: 14 July 2025 (Monday)

• Cut-off Time for UPI Mandate: 5 PM on 9 July 2025

Listing Exchange: BSE SME

Book-Running Lead Manager: Smart Horizon Capital Advisors Pvt Ltd
Registrar: Bigshare Services Pvt Ltd
Market Maker: Alacrity Securities Ltd.

Lot Size and Minimum Investment

Investors can bid for multiples of 600 shares:

• Retail Minimum Investment: 1,200 shares (2 lots) = ~₹2,97,600 (cutoff price)

• HNI Minimum Investment: 1,800 shares (3 lots) = ~₹4,46,400

Note: Even though the price band minimum suggests ~₹1,41,600 for 600 shares, the IPO requires retail investors to bid at minimum 2 lots (1,200 shares) to qualify.

Investor Tip: Always check the lot size carefully. SME IPOs often have higher minimum investments than mainboard IPOs.

Reservation and Allocation Details

Total Shares Offered: 32,29,200

Breakdown:

• Market Maker: 1,66,200 shares (5.15%)

• QIB (Qualified Institutional Buyers): 15,21,000 shares (47.10%)

• NII (Non-Institutional Investors / HNIs): 4,63,200 shares (14.34%)

• Retail Individual Investors: 10,78,800 shares (33.41%)

Anchor Investors:

• Bid Date: 4 July 2025

• Shares: 9,11,400

• Amount Raised: ₹22.60 crore

• Lock-in for 50%: till 9 August 2025

• Lock-in for remaining 50%: till 8 October 2025

Key Insight: Anchor participation signals institutional interest and can support price stability post-listing.

Objectives of the Issue

Chemkart India aims to use net proceeds from the fresh issue to:

1. Finance Capex for New Manufacturing Facility (via investment in WOS Easy Raw Materials Pvt Ltd): ₹34.68 crore

2. Repayment/prepayment of borrowings

3. General Corporate Purposes

Why it matters:
Funding a new facility helps expand capacity and improve operational efficiency, supporting long-term growth.

Company Profile: Chemkart India Limited

Incorporated: 2015
Promoters: Mr. Ankit Shaileesh Mehta, Ms. Parul Shaileesh Mehta, Mr. Shaileesh Vinodrai Mehta

Business Model:

• Distributor specializing in high-quality food and health ingredients.

• B2B focus – serves manufacturers of sports, health, vitamin, protein, and other supplements.

• Bridges global ingredient manufacturers with local businesses in India.

Products Portfolio

• Amino Acids: Essential protein building blocks.

• Health Supplements: Nutrient-rich blends for well-being.

• Herbal Extracts: Plant-based therapeutic ingredients.

• Nucleotides: For immune, gut health.

• Protein: For muscle growth and overall health.

• Sports Nutrition: Enhances athletic performance.

• Vitamins: Micronutrients for physiological functions.

Unique Advantage: Wide portfolio ensures broad customer appeal and reduces dependency on any single product line.

Infrastructure and Operations

• Processing Facility: Bhiwandi, Mumbai.

• Area: 28,259.16 sq. ft.

• Services: Grinding, blending, packaging, labeling, sealing.

Competitive Edge:
In-house processing enables quality control, customization, and cost efficiency.

Competitive Strengths

Chemkart India highlights several key strengths:

• Diversified Product Portfolio: Reduces market risk.

• In-house Processing: Enhances supply chain control.

• Customer Value Proposition: Affordable pricing, quality assurance.

• Experienced Team: Focus on relationships and trust in B2B distribution.

As of March 2025: ~40 employees across functions.

Financial Performance

Strong Growth Trajectory:
Revenue and profit have grown sharply over the last three years.

Highlights:

• Revenue Growth: 55% YoY (FY24–FY25)

• PAT Growth: 67% YoY

• EBITDA Margin: 16.12%

Key Performance Indicators (KPIs)

• Market Cap: ~₹300.06 Cr

• ROE: 0.59%

• ROCE: 0.49%

• Debt/Equity: 0.32

• RoNW: 45.52%

• Price/Book: 8.12

Note: ROE/ROCE here appear understated—likely reflecting transitional balance-sheet changes from pre/post-IPO capitalization.

EPS and P/E

• Pre-IPO EPS: ₹25.54

• Post-IPO EPS: ₹20.05

• Pre-IPO P/E: 9.71x

• Post-IPO P/E: 12.37x

Interpretation: Slight dilution in EPS post-IPO, but P/E remains moderate, indicating reasonable valuation for an SME IPO.

Risks to Consider

• Competitive Industry: Other ingredient distributors exist.

• Working Capital Intensity: B2B trade terms can strain liquidity.

• Raw Material Volatility: Input costs depend on global pricing.

• SME Market Risks: Liquidity may be lower vs mainboard stocks.

Why Invest in Chemkart India IPO?

• High Revenue and PAT Growth: Strong trajectory supports valuation.

• Clear Use of Proceeds: Capex in subsidiary to expand capacity.

• In-House Facilities: Better quality and cost control.

• B2B Distribution Expertise: Trusted relationships in health/food sector.

• Diversified Product Mix: Mitigates sector risk.

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  Disclaimer:
  This article is prepared purely for educational and informational purposes and does not constitute investment advice. Investors are encouraged to perform their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Investing in securities is subject to market risks.

  The Upcoming IPOs in this week and coming weeks are Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Travel Food Services, Cryogenic, Crizac.

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  The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

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  Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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