Chemkart India Limited has launched its ₹80.08 Crore Book Built IPO, comprising a fresh issue of 26 lakh shares worth ₹64.48 Crores and an Offer for Sale (OFS) of 6.29 lakh shares worth ₹15.60 Crores.

The subscription period runs from July 07, 2025 to July 09, 2025. Allotment is expected by July 10, 2025, with BSE SME listing tentatively on July 14, 2025.

The price band is ₹236 to ₹248 per equity share, valuing the company at ₹300.05 Crores at the upper end.

Lot size for retail investors is 600 shares, requiring a minimum investment of ₹1,48,800. For HNIs, the minimum application is 2 lots (1,200 shares) or ₹2,97,600.

Smart Horizon Capital Advisors Private Limited is the book running lead manager, Bigshare Services Pvt Limited is the registrar, and Alacrity Securities Limited is the market maker.

Business Overview

Chemkart India is a Mumbai-based nutraceutical supplier, serving as a one-stop destination for health, nutrition, and sports supplement products.

Its product range covers:

• Amino Acids

• Health Supplements

• Herbal Extracts

• Nucleotides

• Proteins

• Sports Nutrition

• Vitamins

The company emphasizes food products that deliver health benefits alongside nutritional value, aiming to meet both nutritional and health needs of end customers.

Promoter and Management

The company is led by Mr. Ankit Shailesh Mehta (first-generation promoter) along with Ms. Parul Shailesh Mehta and Mr. Shailesh Vinodrai Mehta.

• Mr. Ankit Mehta: 4 years of industry experience

• Ms. Parul Mehta: 9 years of experience in the nutraceutical industry

The promoter team manages daily operations, leveraging sector knowledge and market understanding.

Financial Performance

Chemkart India has demonstrated steady financial growth:

• 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 results underline strong demand and efficient operations.

Valuation and Key Metrics

• Pre-issue EPS (FY24): ₹25.54

• Post-issue EPS (FY24): ₹20.05

• Pre-issue P/E ratio: 9.71x

• Post-issue P/E ratio: 12.37x

Profitability Indicators:

• ROCE (FY24): 49.00%

• ROE (FY24): 59.00%

• RoNW: 45.52%

The valuation appears fair given the company’s growth trajectory and profitability metrics.

Grey Market Premium (GMP) Analysis

The expected Grey Market Premium (GMP) for Chemkart India IPO is ₹22, indicating potential listing gains of approximately 8.87 percent.

GMP is an unofficial indicator, dependent on market demand in the unorganised space, and may change prior to listing.

Use of IPO Proceeds

Funds raised from the fresh issue will be used for:

• Working capital requirements

• General corporate purposes

• Growth initiatives

This will help scale operations and meet rising market demand.

Competitive Advantages

• Diverse product portfolio catering to health and nutrition segments

• Strong growth in revenue and profitability

• Experienced promoter team with industry understanding

• Expanding customer base across India

These factors support Chemkart’s position in the competitive nutraceutical market.

Risks and Considerations

Investors should consider:

• Dependence on consumer demand trends in health and nutrition

• Competitive pressures from domestic and international brands

• Need for continuous product innovation and quality control

• Potential regulatory changes in the nutraceutical sector

Expert Recommendation

Given steady revenue growth, improving margins, and moderate GMP suggesting listing gains, analysts recommend that risk-tolerant investors may apply to Chemkart India IPO for listing gains.

Those seeking long-term exposure to India’s growing nutraceutical sector may also find value in the company’s broad portfolio and expansion potential.

Conclusion

Chemkart India Limited offers a fairly valued IPO with a moderate listing gain outlook based on GMP trends and strong financial growth.

Risk-tolerant investors looking to tap into India’s rising health and nutrition market may consider applying, while more conservative investors may prefer waiting for post-listing performance.

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  Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Crizac, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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