Patel Chem Specialities Ltd, a leading manufacturer of pharmaceutical excipients and specialty chemicals, is set to launch its initial public offering (IPO) on Friday, July 25, 2025, with the subscription window open until Tuesday, July 29, 2025. The company is offering a fresh issue of 70 lakh equity shares, aggregating up to ₹58.80 crore.

IPO Price Band and Lot Size

The price band for the IPO has been fixed at ₹82 to ₹84 per share. The lot size is 1,600 shares, and the minimum application size for retail investors is 2 lots (3,200 shares), amounting to ₹2,68,800. For High Net-worth Individuals (HNIs), the minimum application is 3 lots (4,800 shares) costing ₹4,03,200.

Investors must note that bidding at the cut-off price is not allowed for any investor category in this IPO.

IPO Listing Details and Timeline

The equity shares are proposed to be listed on the BSE SME platform. The tentative listing date is Friday, August 1, 2025. The basis of allotment is expected on Wednesday, July 30, 2025, with shares credited to demat accounts by Thursday, July 31, 2025.

Anchor Investor Participation

On July 24, 2025, the company successfully raised ₹16.69 crore from anchor investors by allocating 19,87,200 equity shares. The anchor lock-in period ends on August 29, 2025 for 50% of shares and October 28, 2025 for the remaining 50%.

Lead Manager and Registrar

The Book Running Lead Manager for the issue is Cumulative Capital Private Limited, while the registrar is MUFG Intime India Pvt Ltd (Link Intime). The market maker is Globalworth Securities Limited.

Shareholding Pattern

• Pre-IPO Promoter Holding: 95.13%

• Post-IPO Promoter Holding: 69.78%

• Equity Dilution: 25.35%

Break-up of the Offer

• Qualified Institutional Buyers (QIB): 33,16,800 shares (47.38%)

• Non-Institutional Investors (NII): 9,98,400 shares (14.26%)

• Retail Individual Investors (RII): 23,31,200 shares (33.30%)

• Market Maker Portion: 3,53,600 shares (5.05%)

• Anchor Investors: 19,87,200 shares (28.39%)

Company Overview: Patel Chem Specialities Ltd

Incorporated in 2008, Patel Chem Specialities Limited is an export-oriented manufacturer of pharmaceutical excipients and specialty chemicals. Their product portfolio finds application across industries like pharmaceuticals, food, cosmetics, and industrial chemicals, acting as binders, disintegrants, thickeners, gelling agents, and more.

The company operates two state-of-the-art manufacturing facilities in Vatva, Ahmedabad and Talod, Himmatnagar, spread across 7,000 square yards and a production capacity of 7,200 metric tonnes annually. Their facilities are certified under US-DMF and GMP, ensuring global quality standards.

They have built a global clientele across North America, Southeast Asia, Europe, East Asia, and the Middle East.

Product Line Highlights

1. Rheollose® (Sodium CMC): Used as a stabilizer and thickener.

2. Disolwell® (Croscarmellose Sodium): Aids disintegration in tablets.

3. Swellcal® (Calcium CMC): Pharmaceutical super disintegrant.

4. AmyloTab™ (Pregelatinized Starch): Enhances dissolution of tablets.

Employee Strength

As of March 31, 2025, the company had 136 employees, including technical, production, sales, and R&D staff.

Financial Performance

Revenue grew by 28% and Profit After Tax (PAT) increased by 38% in FY2025 compared to FY2024, showing strong financial growth.

Key Financial Ratios and Valuations

• Return on Equity (ROE): 29.85%

• Return on Capital Employed (ROCE): 36.26%

• Debt to Equity Ratio: 0.42

• PAT Margin: 10.01%

• EBITDA Margin: 14.97%

• Price to Book Value (P/BV): 4.11

• Post-Issue EPS: ₹4.25

• Post-Issue P/E Ratio: 19.77x

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Sellowrap Industries, Repono, Shanti Gold International, Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, Patel Chem Specialities, Monarch Surveyors & Engineering Consultants, TSC India, NSDL.

The Current active IPO are Swastika Castal, Savy Infra.

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