Renol Polychem, India's fastest growing Masterbatches manufacturer, is making waves in the SME IPO market with its recent public offering. Based in Rajkot, Gujarat, the company benefits from excellent logistics connectivity, including proximity to raw material sources, transport hubs, and shipping ports. With deep roots in the master batch industry and a consistent record of customer reliability, Renol Polychem is now entering the equity market with a ₹25.76 crore Book Built Issue.

IPO Structure and Details

The IPO is entirely a fresh issue of 24.54 lakh equity shares, with a price band fixed between ₹100 and ₹105 per share. At the upper end of the band, the estimated market capitalization stands at ₹83.41 crore. The minimum lot size for application is 1,200 shares, requiring retail investors to apply for at least 2 lots (2,400 shares), translating to a minimum investment of ₹2,52,000.

Corporate Makers Capital Limited is acting as the Book Running Lead Manager (BRLM) for the issue, while Skyline Financial Services Pvt Ltd has been appointed as the Registrar. Asnani Stock Broker Pvt Ltd is the market maker.

Subscription Status and Investor Response

As of 11:30 AM on August 4, 2025, the Renol Polychem IPO was subscribed 3.20 times on the final day. This reflects robust demand from retail, HNI, and anchor investors. Prior to the public subscription window, the company successfully raised ₹25.76 crore from anchor investors at ₹105 per share. A total of 24.54 lakh shares were allotted to anchor investors in consultation with the lead managers.

Grey Market Premium (GMP)

As per market data, the GMP of Renol Polychem IPO is ₹6 per share, reflecting a 5.71% expected listing gain. This implies a possible listing price of ₹111 per share, which, while modest, suggests some investor confidence in the short term. However, it is essential to note that GMP is unofficial, unregulated, and volatile; hence it should not be the sole basis for investment decisions.

Company Background and Promoters

Renol Polychem is led by Mr. Bhaveshbhai Mansukhbhai Harsoda, the Managing Director, who has over 15 years of industry experience, overseeing all production and operations. Mr. Naitik Bhaveshbhai Harsoda, the Executive Director, brings 4 years of experience, particularly in sales and marketing.

The company's operational base in Gujarat offers strategic logistical advantages and access to raw materials, giving it a competitive edge.

Financial Performance

Renol Polychem has demonstrated strong financial growth in recent years. Here's a summary of the last three fiscal years:

• Revenue from Operations:

  • FY25: ₹6,256.23 lakh

  • FY24: ₹652.31 lakh

  • FY23: ₹4,185.74 lakh

• EBITDA:

  • FY25: ₹740.59 lakh

  • FY24: ₹230.05 lakh

  • FY23: ₹137.21 lakh

• Profit After Tax (PAT):

  • FY25: ₹499.68 lakh

  • FY24: ₹153.39 lakh

  • FY23: ₹72.81 lakh

This data shows a consistent and steep upward trajectory, underlining the company’s growth potential.

Valuation and Key Ratios

The pre-issue EPS (FY24) is ₹9.1, while the post-issue EPS drops to ₹6.29. The P/E ratio based on these EPS figures is:

• Pre-Issue P/E: 11.53x

• Post-Issue P/E: 16.69x

These ratios indicate the IPO is moderately valued, and reflective of the company’s strong growth outlook. Other key metrics include:

• ROCE (FY24): 64.18%

• ROE (FY24): 45.37%

• RoNW: 45.37%

Such high returns on capital and equity signal effective capital deployment and profitability.

Use of IPO Proceeds

The net proceeds from the IPO are earmarked for the following objectives:

1. ₹5.60 crore for capital expenditure, specifically for the purchase of machinery.

2. ₹1.00 crore towards repayment of borrowings, reducing leverage.

3. ₹15.15 crore for working capital requirements.

4. Balance funds for general corporate purposes.

These allocations are in line with the company’s goal of expansion and operational efficiency.

Allotment and Listing Timeline

• IPO Closing Date: August 4, 2025

• Allotment Date: August 5, 2025 (Tuesday)

• Expected Listing Date: August 7, 2025 (Thursday)

• Stock Exchange: NSE SME Platform

How to Check Allotment Status

Investors can check their IPO allotment status on the Skyline Financial Services website. Here’s how:

• Visit the allotment status page

• Select Renol Polychem Limited IPO from the dropdown

• Enter your Application Number / PAN / DP Client ID

• Submit and view your allotment status

GMP Trend and Market Sentiment

Below is the GMP trend for Renol Polychem IPO:

The steady GMP indicates a muted premium, potentially due to conservative investor sentiment or limited liquidity in the grey market.

Investment Recommendation

While Renol Polychem shows excellent financial growth, the modest GMP and premium valuation suggest caution for listing gains. However, for long-term investors, the company's high ROCE, strong revenue growth, and strategic location offer compelling reasons to consider.

Final Verdict

Given the overall financial performance, valuation metrics, and moderate GMP, the Renol Polychem IPO is recommended for cautious long-term investors, but those seeking quick listing gains may consider avoiding it. The subscription status shows healthy demand, but not frenzy.

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.

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