Unilex Colours and Chemicals Limited is engaged in manufacturing pigments and trading chemicals and food colors. Their pigments serve a diverse range of applications across various industries, including plastics, rubber, textiles, paper, printing inks, paints, and coatings.

The Unilex Colours and Chemicals IPO is a Book Built Issue amounting to ₹31.32 Crores, consisting entirely of a Fresh Issue of 36.00 Lakh Shares. The subscription period for the IPO runs from September 25, 2024, to September 27, 2024. Allotment is expected to be finalized around September 30, 2024, with shares slated to list on the NSE SME on or about October 03, 2024.

The share price band for the IPO is set between ₹82 to ₹87 per equity share, with a minimum lot size of 1,600 shares. Retail investors must invest a minimum of ₹1,39,200, while High-Net-Worth Individuals (HNIs) are required to invest in 2 lots (3,200 shares), amounting to ₹2,78,400.

HEM SECURITIES LIMITED is the book-running lead manager, LINK INTIME INDIA PRIVATE LIMITED serves as the registrar for the issue, and Hem Finlease Private Limited acts as the Market Maker for Unilex Colours and Chemicals.

Live Subscription Status

As of 04:30 PM on September 27, 2024, the live subscription status for the Unilex Colours and Chemicals IPO shows a robust demand, with the IPO subscribed 30.78 times on its final day.

Anchor Investors Report

Unilex Colours and Chemicals has successfully raised ₹8.88 Crore from anchor investors at a price of ₹87 per share, allocating 10,20,800 equity shares to them. The shares for anchor investors are allotted from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Date and Procedure

The allotment date for the Unilex Colours and Chemicals IPO is scheduled for September 30, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select Unilex Colours and Chemicals Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated for the following purposes:

₹1,500.00 Lakhs to meet working capital requirements.

₹1,000.00 Lakhs for the repayment of a portion of certain borrowings availed by the company.

General corporate purposes.

Financial Performance Overview

Unilex Colours and Chemicals has demonstrated stable financial performance, with revenue figures for Fiscal 2024, Fiscal 2023, and Fiscal 2022 recorded at ₹14,932.88 Lakhs, ₹14,441.84 Lakhs, and ₹15,156.73 Lakhs, respectively. The EBITDA for these years was ₹430.57 Lakhs, ₹274.01 Lakhs, and ₹100.34 Lakhs. The Profit After Tax for these years was ₹616.67 Lakhs, ₹497.07 Lakhs, and ₹471.17 Lakhs.

For the Unilex Colours and Chemicals IPO, the company is issuing shares at a pre-issue EPS of ₹6.16 and a post-issue EPS of ₹4.52. The pre-issue P/E ratio is 14.12x, while the post-issue P/E ratio stands at 19.24x, compared to an industry P/E of 27.57x. The company's Return on Capital Employed (ROCE) for FY24 is 6.32%, and the Return on Equity (ROE) is 17.90%, indicating that the IPO is fairly priced.

Investment Recommendation

Currently, the Grey Market Premium (GMP) for Unilex Colours and Chemicals suggests potential listing gains of 0%. Given the company's financial performance and valuation metrics, we recommend that investors avoid the Unilex Colours and Chemicals Limited IPO for potential listing gains or long-term investment purposes.

In summary, the Unilex Colours and Chemicals IPO presents a cautious investment opportunity, with its financial metrics and market positioning not promising substantial short-term gains. 

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