Chemkart India Limited, a Mumbai-based nutraceutical company, has launched its IPO on the BSE SME platform with a total issue size of ₹80.08 crore. The IPO comprises a fresh issue of 26 lakh shares worth ₹64.48 crore and an offer for sale (OFS) of 6.29 lakh shares totalling ₹15.60 crore.

The subscription window is open from July 7 to July 9, 2025, giving investors three days to place their bids. The allotment is expected to be finalised on or about July 10, 2025, with listing planned for July 14, 2025.

The price band for the IPO has been fixed at ₹236 to ₹248 per equity share, with a lot size of 600 shares. Individual investors must apply for a minimum of 2 lots (1,200 shares), translating to ₹2,83,200 at the upper band.

Smart Horizon Capital Advisors Private Limited is the book-running lead manager, while Bigshare Services Pvt Limited serves as the registrar. Alacrity Securities Limited acts as the market maker, ensuring liquidity on listing.

Grey Market Premium (GMP) Trends Suggest ₹22 Premium

As of the latest update, the grey market premium (GMP) for Chemkart India IPO is hovering around ₹22.

This unofficial indicator suggests an expected listing price of approximately ₹270 (IPO cap price of ₹248 plus ₹22 GMP), implying an 8.87% listing gain.

While GMP is not an official forecast, it is widely used by investors to gauge market sentiment and demand before listing. Analysts note that GMP is driven by demand and supply in unregulated markets, making it volatile and unpredictable.

Investors are advised to treat GMP figures as directional cues only and focus on company fundamentals for investment decisions.

Live Subscription Status Shows 1.69x Bids on Final Day

As of 12 PM on July 9, 2025, Chemkart India IPO has been subscribed 1.69 times.

This figure suggests reasonable demand for the SME issue, with retail, HNI, and QIB segments contributing to bids.

Key highlights:

• Investors showed steady interest across the subscription window.

• Anchor investors committed ₹22.60 crore at ₹248 per share, allocating 9,11,400 shares.

• The anchor investment was raised in consultation with the lead manager, signalling early institutional support.

Anchor shares are allocated from the QIB reservation portion, offering confidence to retail investors about the issue’s credibility.

Detailed Business Profile of Chemkart India

Chemkart India positions itself as a one-stop destination for nutritional, health, and sports supplements. The company focuses on food products that deliver health benefits beyond basic nutrition, serving diverse consumer needs.

Operating from Mumbai, Chemkart offers products across seven major categories:

• Amino Acids

• Health Supplements

• Herbal Extracts

• Nucleotides

• Proteins

• Sports Nutrition

• Vitamins

These segments target health-conscious consumers, athletes, and wellness enthusiasts, aligning with India’s growing nutraceutical market.

Chemkart’s diverse portfolio reflects its commitment to quality and innovation. By addressing both nutritional and health needs, it aims to build a loyal customer base.

Management and Promoter Details

Chemkart India is promoted by Mr. Ankit Shailesh Mehta, Ms. Parul Shailesh Mehta, and Mr. Shailesh Vinodrai Mehta.

Led by first-generation entrepreneur Mr. Ankit Mehta, the management team combines industry experience and strategic vision:

• Mr. Ankit Shailesh Mehta: 4 years in nutraceuticals.

• Ms. Parul Shailesh Mehta: 9 years in the industry.

Their leadership underpins operational decisions, product development, and market expansion strategies, ensuring strong governance.

Financial Performance Shows Steady Growth

Chemkart India has reported consistent growth in financial performance over recent fiscal years:

• Revenue from operations: ₹20,545.63 lakh (FY25), ₹13,282.77 lakh (FY24), ₹13,168.62 lakh (FY23).

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

• Profit after tax: ₹2,425.75 lakh (FY25), ₹1,451.82 lakh (FY24), ₹766.02 lakh (FY23).

This upward trajectory demonstrates strong operational efficiency, market acceptance, and cost management.

The company’s pre-issue EPS is ₹25.54 and post-issue EPS is ₹20.05 for FY24, with pre-issue P/E at 9.71x and post-issue P/E at 12.37x.

These metrics suggest the IPO is fairly priced considering sector valuations.

Strong Profitability Ratios

Key performance indicators underline financial health:

• ROCE (FY24): 49.00%

• ROE (FY24): 59.00%

• RoNW (FY24): 45.52%

Such strong ratios indicate effective capital allocation, high profitability, and strong returns for shareholders.

IPO Objectives and Use of Proceeds

Chemkart India plans to utilise the net proceeds for:

• Financing capital expenditure (~₹34.68 crore) to set up a manufacturing facility through its wholly owned subsidiary Easy Raw Materials Pvt Ltd.

• Repaying/prepaying borrowings (~₹20.00 crore) to reduce debt and improve financial stability.

• General corporate purposes to support day-to-day operations and future growth plans.

These investments aim to strengthen manufacturing capabilities, reduce interest costs, and support expansion in the nutraceutical space.

Market Capitalisation and Valuation

At the upper price band of ₹248 per share, Chemkart India will have a market capitalisation of ₹300.05 crore.

Given its profitability, revenue growth, and sector demand, many analysts see this valuation as reasonable for an SME IPO.

GMP Caution and Risk Factors

While the GMP of ₹22 indicates 8.87% listing gains, investors should remember:

• GMP is unofficial and volatile, based on unorganised trading.

• Market sentiment can shift rapidly before listing.

• Actual listing price depends on demand-supply dynamics on listing day.

Moreover, SME IPOs come with unique risks:

• Lower liquidity post-listing, affecting exit options.

• Less analyst coverage, making due diligence essential.

• Regulatory compliance and governance standards, which vary among issuers.

How to Apply for Chemkart India IPO

Investors can subscribe through:

• UPI-enabled broker apps (Zerodha, Groww, Paytm Money, etc.).

• Net-banking ASBA facility via their bank.

• Stockbrokers who offer SME IPO applications.

Minimum application size: 2 lots (1,200 shares), translating to ₹2,83,200 at the cap price.

Allotment and Listing Timeline

Key dates for investors:

• IPO closes: 09 July 2025.

• Allotment expected: 10 July 2025.

• Listing on BSE SME platform: 14 July 2025 (tentative).

Investors can check allotment status on the registrar’s website using application number, PAN, or DP Client ID.

Analyst Recommendations

Given Chemkart’s steady financial performance, strong margins, profitability ratios, and reasonable valuation, analysts often recommend the IPO to risk-tolerant investors seeking listing gains.

While GMP suggests 8–9% gains, true upside depends on final demand and market conditions.

Conclusion

Chemkart India’s IPO offers a compelling option for investors seeking exposure to India’s growing nutraceutical sector. With:

• ₹80.08 crore issue.

• ₹22 GMP suggesting listing gains.

• Strong revenue and profit growth.

• Experienced promoter team.

…this IPO demonstrates potential for short-term and long-term investors alike.

However, it is essential to carefully evaluate risks, understand the SME market dynamics, and invest wisely.

For those willing to commit capital to SME IPOs, Chemkart India represents a noteworthy opportunity in 2025’s crowded IPO calendar.

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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