Chemkart India IPO Opens July 7 with ₹80.08 Crore Issue at ₹236 to ₹248 Price Band

Chemkart India Limited, a Mumbai-based nutraceutical company, is all set to hit the primary market with its initial public offering (IPO) worth ₹80.08 crore. This IPO is a Book Built Issue, comprising a Fresh Issue of 26 lakh shares raising ₹64.48 crore and an Offer for Sale (OFS) of 6.29 lakh shares aggregating ₹15.60 crore.

The IPO opens for subscription on July 7, 2025, and closes on July 9, 2025. This short window is typical of SME IPOs, aimed at efficiently completing the fundraising process.

Investors eyeing the BSE SME platform should pay close attention to listing schedules, lot sizes, and investment thresholds before committing funds.

Key Dates and Timeline for Investors

Chemkart India IPO's important dates provide a clear roadmap for participants:

• IPO Opens: July 7, 2025

• IPO Closes: July 9, 2025

• Allotment Finalisation: Expected on Thursday, July 10, 2025

• Listing Date: Tentative on Monday, July 14, 2025

Investors should monitor these timelines for application planning, refund tracking, and listing day strategies.

Price Band, Market Capitalisation, and Minimum Investment

The price band is set between ₹236 to ₹248 per equity share. At the upper band of ₹248, Chemkart India’s estimated market capitalisation will be ₹300.05 crore.

This valuation reflects the company's strong financial fundamentals, sector growth, and IPO pricing strategy aimed at attracting serious investors.

Lot size is 600 shares:

• Minimum bid for individual investors is 2 lots (1,200 shares).

• This requires a minimum investment of ₹2,83,200 at the upper band.

Such high entry thresholds are typical for SME IPOs, ensuring participation by committed investors with a medium to high risk appetite.

Lead Manager, Registrar, and Market Maker

The issue is managed by Smart Horizon Capital Advisors Private Limited as the Book Running Lead Manager (BRLM).

Bigshare Services Pvt Limited acts as the Registrar, handling allotment, refunds, and investor communication.

Alacrity Securities Limited is the Market Maker, responsible for providing liquidity support post-listing on BSE SME.

These reputable intermediaries ensure smooth transaction execution and build investor confidence in the process.

Business Overview: Nutraceutical and Health-Focused Products

Chemkart India is a one-stop destination for a wide range of nutritional, health, and sports supplements.

It offers products under seven main categories:

• Amino Acids

• Health Supplements

• Herbal Extracts

• Nucleotide

• Protein

• Sports Nutrition

• Vitamins

The company’s mission is to deliver food products that provide health benefits beyond basic nutrition. Its product strategy is aligned with the growing consumer shift toward health-conscious living, functional foods, and sports nutrition in India.

Operating out of Mumbai, the company services a wide customer base demanding quality nutrition solutions.

Promoter Background and Management Strength

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

• Mr. Ankit Shailesh Mehta: A first-generation entrepreneur with 4 years of experience in the nutraceutical industry.

• Ms. Parul Shailesh Mehta: Brings 9 years of sectoral experience.

Their leadership reflects a blend of youthful energy and industry learning, though some may see relatively limited experience as a factor to consider when assessing execution risk.

However, their hands-on approach ensures close control over product quality, customer relationships, and supply chain management.

Financial Performance: Steady and Impressive Growth

Chemkart India has posted consistent financial growth, underlining its sector potential and business execution:

• Revenue from Operations:

  • FY23: ₹13,168.62 lakh

  • FY24: ₹13,282.77 lakh

  • FY25: ₹20,545.63 lakh

• EBITDA:

  • FY23: ₹1,135.83 lakh

  • FY24: ₹2,171.29 lakh

  • FY25: ₹3,494.10 lakh

• Profit After Tax (PAT):

  • FY23: ₹766.02 lakh

  • FY24: ₹1,451.82 lakh

  • FY25: ₹2,425.75 lakh

These numbers demonstrate robust demand, operational scalability, and cost control.

Such growth also suggests market acceptance of its product lines and successful channel strategies in a competitive market.

Valuation, Ratios, and Peer Comparison

Chemkart India’s IPO pricing reflects fair valuation based on earnings and industry context:

• Pre-issue EPS: ₹25.54

• Post-issue EPS: ₹20.05 for FY24

• Pre-issue P/E Ratio: 9.71x

• Post-issue P/E Ratio: 12.37x

These multiples suggest reasonable pricing, attractive for value-focused investors in the SME segment.

Key profitability metrics:

• Return on Capital Employed (ROCE): 49.00%

• Return on Equity (ROE): 59.00%

• Return on Net Worth (RoNW): 45.52%

These ratios highlight strong capital efficiency, attractive profitability, and business resilience.

Anchor Investor Participation and Confidence

Chemkart India secured ₹22.60 crore from Anchor Investors at ₹248 per share.

A total of 9,11,400 shares were allocated to these institutions, signalling confidence in Chemkart’s business model, growth prospects, and IPO pricing.

Anchor participation often boosts retail sentiment and adds credibility to the issue.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium (GMP) for Chemkart India is approximately ₹22, suggesting an expected listing gain of 8.87% at the upper band.

While GMP is unofficial and unregulated, it often serves as an early sentiment indicator.

A positive GMP suggests moderate market optimism, but investors should be aware that GMP is highly speculative and can change rapidly.

Live Subscription Status

As of 11:40 AM on July 8, 2025, the IPO was 0.64 times subscribed on the second day.

While not a runaway success yet, such early subscription levels are normal for SME IPOs, which often see last-day surges driven by HNI and retail investors.

Investment Risks and Considerations

Investors must weigh both opportunities and risks:

Strengths:

• Robust financial growth

• High-profit margins

• Fair valuation metrics

• Anchor investor backing

Risks:

• Relatively new promoters with limited industry experience.

• High minimum investment requirement limits accessibility.

• SME segment volatility can impact post-listing liquidity.

• Competitive nutraceutical space requiring sustained innovation.

Conclusion: A Cautious but Positive Outlook

Chemkart India IPO offers investors exposure to India’s growing nutraceutical market, supported by diversified product lines, strong revenue growth, and attractive profitability.

The IPO is fairly priced, with a moderate GMP indicating potential listing gains for risk-tolerant investors.

Analysts recommend that investors with higher risk appetite consider applying, while others may wait and watch for post-listing performance before making a move.

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.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control,  Anthem Biosciences.

The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

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