Renol Polychem, a Rajkot-based manufacturer of Masterbatches, has launched its IPO with a fresh issue of ₹25.76 crores, comprising 24.54 lakh equity shares. This book-built issue opened for subscription on July 31, 2025, and will close on August 04, 2025. The company has fixed a price band of ₹100 to ₹105 per equity share, with a minimum investment requirement of ₹2,52,000 for retail investors in two lots (2,400 shares).

The IPO will be listed on NSE SME platform, with the allotment date scheduled for August 5, 2025, and tentative listing on August 7, 2025. The market capitalization at the upper band stands at ₹83.41 crores.

Company Background

Renol Polychem is touted as India’s fastest-growing manufacturer of Masterbatches. With its operations headquartered in Rajkot, Gujarat, the company benefits from excellent access to transport networks, raw material hubs, and shipping ports. This logistical edge supports its ambitions of becoming a top-tier supplier in the polymer additive segment.

The company is spearheaded by Bhaveshbhai Mansukhbhai Harsoda (Managing Director), with over 15 years of experience, and Naitik Bhaveshbhai Harsoda (Executive Director), who focuses on sales and marketing strategy.

IPO Details and Objective

The IPO aims to raise capital for the following purposes:

• ₹5.60 crore for purchase of new machinery

• ₹1.00 crore for repayment of borrowings

• ₹15.15 crore for working capital

• Remaining for general corporate purposes

The lead manager for the issue is Corporate Makers Capital Limited, with Skyline Financial Services Private Limited as the registrar. The market maker is Asnani Stock Broker Pvt. Ltd.

Financial Highlights

Renol Polychem has shown impressive growth over the last three years:

Such a surge in revenue and profitability reflects a strong operational capability, supported by increasing demand in the Masterbatch industry.

Valuation Metrics

Based on FY24 earnings:

• Pre-issue EPS: ₹9.1

• Post-issue EPS: ₹6.29

• Pre-issue P/E: 11.53x

• Post-issue P/E: 16.69x

• ROCE: 64.18%

• ROE: 45.37%

These numbers indicate a robust business, although the post-issue valuation appears to be on the higher side. The relatively high P/E ratio post-issue may limit upside potential in the short term.

Grey Market Premium (GMP) and Listing Expectations

As per the GMP trend till 28 July 2025, the grey market premium is ₹6, indicating an expected listing price of ₹111, just a 5.71% premium over the issue price.

However, market experts advise investors not to rely solely on GMP, as this is unofficial, unregulated, and often driven by demand-supply imbalance in grey markets, not actual fundamentals.

Subscription Status

As of 12:00 PM on 01 August 2025, the IPO is subscribed 1.36 times, suggesting decent investor interest, but nothing extraordinary for SME IPO standards. Investors can check live subscription updates on the NSE portal for real-time data.

Anchor Investors and Allocation

The company has successfully raised ₹25.76 crore from Anchor Investors at the upper price band of ₹105 per share. A total of 24.54 lakh shares were allocated to them. Notably, Anchor shares are part of the QIB quota and are typically locked in for 30 to 90 days.

Allotment and How to Check

The Renol Polychem IPO allotment date is August 5, 2025. Here's how you can check:

• Visit the registrar's official website

• Select Renol Polychem IPO from the dropdown

• Enter PAN/Application Number/DP ID

• Click on Submit to view allotment status

Allotment results will also be published on the stock exchanges.

Recommendation

Despite the strong revenue growth and return ratios, the IPO appears fairly valued with limited upside potential for listing gains. The ₹6 GMP is not significant enough to entice short-term investors, and subscription figures are modest compared to recent SME IPOs.

Given these factors, analysts suggest avoiding the IPO purely for listing gains. Long-term investors with confidence in the polymer additive sector and the company’s growth potential may consider it, but others are advised to wait and watch.

Conclusion

Renol Polychem is a promising company with consistent financial performance, good leadership, and strong industry presence. However, valuation metrics and limited GMP indicate that the IPO may not deliver high listing gains. Investors should evaluate their risk appetite before subscribing.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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