Renol Polychem Limited, one of India’s fastest-growing masterbatch manufacturers, has launched its SME IPO on the NSE SME platform, with a total issue size of ₹25.76 crore. The public issue comprises only a fresh issue of 24.54 lakh shares in a price band of ₹100–₹105 per share, and the IPO window remains open from July 31 to August 4, 2025.

Based in Rajkot, Gujarat, Renol Polychem is well-positioned geographically with access to key transport networks, ports, and raw material suppliers, contributing to its rapid growth and logistical advantage.

Renol Polychem IPO Details

Grey Market Premium and Listing Outlook

As of July 28, 2025, the Grey Market Premium (GMP) for Renol Polychem stands at ₹6, suggesting an expected listing price of ₹111, or about 5.71% higher than the upper band price. While a premium in the grey market reflects some investor optimism, this modest GMP indicates limited listing gain potential.

It's important to note that GMP is unofficial, unregulated, and based on demand-supply in informal markets. It is not a reliable indicator for investment decisions, especially for SME IPOs with lower liquidity.

Subscription Status and Anchor Investors

As of 11:30 AM on Day 1 (July 31, 2025), the IPO was subscribed 0.38 times, with modest interest seen in early trade. Renol Polychem raised ₹25.76 crore from anchor investors ahead of the IPO at the upper price band of ₹105, indicating institutional confidence, albeit not overwhelming.

Objectives of the IPO

The company plans to use the IPO proceeds for the following purposes:

1. ₹5.6 crore – Capital expenditure for machinery purchases

2. ₹1 crore – Repayment of certain borrowings

3. ₹15.15 crore – Working capital requirements

4. Remaining – General corporate purposes

This capital infusion is aimed at enhancing manufacturing capacity and reducing dependency on external funding.

Financial Performance Snapshot

Renol Polychem has reported strong financial growth over the past three fiscal years:

The increase in top-line and bottom-line performance indicates a robust business expansion phase.

Key Valuation Metrics

Despite solid profitability and efficiency ratios, the post-issue P/E of 16.69x suggests that a significant portion of the upside may already be factored into the price. The industry average P/E for comparable companies in the chemical and plastics sector is around 18–22x.

Promoters and Leadership

Renol Polychem is led by experienced professionals:

• Mr. Bhaveshbhai Mansukhbhai Harsoda – Managing Director, 15+ years in production and operations

• Mr. Naitik Bhaveshbhai Harsoda – Executive Director, 4+ years in sales & marketing

Their domain expertise and active involvement in company affairs provide stability and strategic direction.

IPO Recommendation: Should You Apply?

While Renol Polychem's fundamentals are strong, including excellent ROCE and revenue growth, the muted GMP and relatively high post-issue valuation suggest that listing gains may be limited.

Risks to consider:

• High minimum investment of ₹2.52 lakh may deter retail investors.

• Being listed on the SME platform, the stock could face lower liquidity and higher volatility post-listing.

• Only modest early subscription and a low GMP don't reflect aggressive investor enthusiasm.

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  Disclaimer

  The above analysis is for educational and informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Kindly consult your financial advisor before investing.

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  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.

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  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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