Renol Polychem Limited, one of India’s fastest-growing manufacturers of Masterbatches, is launching its Initial Public Offering (IPO) under the Book Built Issue route. The Rajkot (Gujarat)-based company has significant logistical advantages, including proximity to shipping ports, established transport networks, and accessibility to raw materials—making it a preferred choice in the masterbatch manufacturing segment.

The Renol Polychem IPO will open for subscription from July 31, 2025, to August 4, 2025, and it is expected to list on the NSE SME platform around August 7, 2025. The IPO is entirely a fresh issue of 24.54 lakh shares, aggregating to a total size of ₹25.76 crore. The price band has been fixed between ₹100 to ₹105 per equity share, and the lot size is 1,200 shares. Investors will have to apply for a minimum of 2 lots (2,400 shares), which equates to a minimum investment of ₹2,52,000.

At the upper price band of ₹105, the market capitalization of Renol Polychem will be ₹83.41 crore.

Corporate Makers Capital Limited is serving as the book running lead manager (BRLM) for the issue. Skyline Financial Services Private Limited is the registrar, and Asnani Stock Broker Private Limited is the market maker.

Grey Market Premium (GMP)

As of July 28, 2025, the Renol Polychem IPO Grey Market Premium (GMP) is ₹0, indicating no expected listing gain. This value is speculative, non-regulated, and based on informal trading trends. Investors are advised not to base investment decisions solely on GMP data.

IPO Anchor Investors

Renol Polychem raised ₹25.76 crore from anchor investors at ₹105 per share. All 24.54 lakh equity shares were allocated under the anchor investor quota in consultation with the BRLM. The shares were offered from the Qualified Institutional Buyers (QIBs) reservation portion.

Live Subscription Status

The live subscription status will be available starting from July 31, 2025, on the official registrar’s platform.

IPO Allotment Date and Process

The Renol Polychem IPO allotment date is tentatively August 5, 2025. Investors can check the allotment status through the following steps:

1. Visit the registrar’s IPO allotment status page.

2. Select “Renol Polychem IPO” from the dropdown list.

3. Enter your Application Number, PAN, or DP Client ID.

4. Submit the details to view your allotment status.

The link will be active on the registrar’s site on or after the allotment finalization date.

IPO Objectives and Use of Funds

The proceeds from the IPO will be used for the following objectives:

1. Capital Expenditure: ₹560.00 lakh for the purchase of new machinery.

2. Loan Repayment: ₹100.00 lakh towards the repayment of existing borrowings.

3. Working Capital Requirements: ₹1,515.00 lakh to be used to meet operational liquidity needs.

4. General Corporate Purposes.

Company Financials and Performance

Renol Polychem has displayed a steady upward trend in its financials. Below is a summary of its key financial metrics:

Revenue from Operations:

• FY 2025: ₹6,256.23 lakh

• FY 2024: ₹652.31 lakh

• FY 2023: ₹4,185.74 lakh

EBITDA:

• FY 2025: ₹740.59 lakh

• FY 2024: ₹230.05 lakh

• FY 2023: ₹137.21 lakh

Profit After Tax (PAT):

• FY 2025: ₹499.68 lakh

• FY 2024: ₹153.39 lakh

• FY 2023: ₹72.81 lakh

These figures indicate strong year-over-year growth in both top-line and bottom-line numbers.

Key Ratios and Valuation Metrics

The company's valuation appears reasonable based on key financial metrics:

• Pre-Issue EPS (FY24): ₹9.1

• Post-Issue EPS (FY24): ₹6.29

• Pre-Issue P/E: 11.53x

• Post-Issue P/E: 16.69x

• ROCE (FY24): 64.18%

• ROE (FY24): 45.37%

• RoNW: 45.37%

These indicate a healthy operational and capital efficiency profile.

Management Team

Renol Polychem is led by:

• Mr. Bhaveshbhai Mansukhbhai Harsoda, Managing Director, with 15+ years of experience in masterbatch production and operations.

• Mr. Naitik Bhaveshbhai Harsoda, Executive Director, overseeing sales and marketing with 4 years of experience in the sector.

Renol Polychem IPO Review and Recommendation

Despite strong financial growth and a competent management team, Renol Polychem's IPO does not currently show premium in the grey market, suggesting low listing gains. The valuation appears fair but not attractive for short-term gains. Therefore, investors looking for listing profits are advised to AVOID the IPO.

However, long-term investors seeking exposure in the plastics and chemical sector with a niche manufacturing profile may consider this issue after evaluating individual risk appetite.

Disclaimer

This article is intended for informational and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell securities. Please consult a registered financial advisor before making any investment decisions. Investing in securities markets involves risk; carefully read all related documents before investing.

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“Investment in the securities market is subject to market risks. Read all related documents carefully before investing.”

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The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Jyoti Global Plast.

The Current active IPO are B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono.

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