Unilex Colours and Chemicals Limited is engaged in the manufacturing of pigments and the trading of chemicals and food colors. The pigments produced find applications in diverse industries such as plastics, rubber, textiles, paper, printing inks, and paints and coatings.

The company is launching a Book Built Issue IPO amounting to ₹31.32 Crores, which comprises a fresh issue of 36.00 lakh shares. The subscription period for the Unilex Colours and Chemicals IPO opened on September 25, 2024, and will close on September 27, 2024. Allotment results are expected to be finalized around September 30, 2024, with shares listed on the NSE SME on or about October 3, 2024.

The share price band for the IPO is set between ₹82 and ₹87 per equity share, with a minimum lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹1,39,200, while High-Net-Worth Individuals (HNIs) need to invest at least ₹2,78,400 for 2 lots (3,200 shares). HEM SECURITIES LIMITED is the book-running lead manager, LINK INTIME INDIA PRIVATE LIMITED serves as the registrar, and Hem Finlease Private Limited is the market maker for the IPO.

Unilex Colours and Chemicals Limited IPO GMP Today

The Grey Market Premium (GMP) for the Unilex Colours and Chemicals IPO is currently projected to be ₹0, reflecting a lack of positive investor sentiment based on the company’s financial performance. It’s essential to note that the GMP serves as an unregulated market indicator and is not reliable for actual price discovery.

Subscription Status:

As of 4:30 PM on September 27, 2024, the live subscription status for the Unilex Colours and Chemicals IPO indicates a robust subscription rate of 30.78 times on its final day of the subscription period. Investors can check the current subscription status via the NSE.

Anchor Investors Report:

Unilex Colours and Chemicals successfully raised ₹8.88 Crores from anchor investors at a price of ₹87 per share. A total of 10,20,800 equity shares were allocated to these investors, with shares allotted from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Process:

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

Visit 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, and submit to view your allotment status.

Utilization of IPO Proceeds:

The proceeds from the IPO will be allocated to:

₹1,500 Lakhs to meet working capital requirements.

₹1,000 Lakhs for repaying a portion of certain borrowings.

General corporate purposes.

Financial Overview:

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

For the Unilex Colours and Chemicals IPO, the pre-issue Earnings Per Share (EPS) stands at ₹6.16, and the post-issue EPS is ₹4.52. The pre-issue Price to Earnings (P/E) ratio is 14.12x, while the post-issue P/E ratio is 19.24x, compared to the 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%, suggesting that the IPO is fairly priced.

Investment Recommendation:

With a Grey Market Premium (GMP) of 0%, and considering the company's stable but unimpressive financial performance and valuation metrics, we recommend investors to avoid the Unilex Colours and Chemicals Limited IPO for both potential listing gains and long-term investment purposes.

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