Patel Chem Specialities IPO

About Patel Chem Specialities IPO

Patel Chem Specialities Limited IPO is an IPO of up to 70,00,000 equity shares, aggregating up to ₹58.80 cr. It consists of a fresh issue of up to 70,00,000 equity shares of Face Value ₹10/- each. The shares will be allotted on July 30, 2025. The credit of shares to the demat account will take place on July 31, 2025 and the initiation of refunds will take place on July 31, 2025.

The IPO opens on July 25, 2025. The IPO closes on July 29, 2025. The IPO listing will take place on Aug 1, 2025. The allotment date is July 30, 2025. The credit of shares to the demat account will take place on July 31, 2025. The

Patel Chem Specialities Limited was incorporated on 25 June 2008, with the primary focus on manufacturing of high-quality cellulose-based excipients which predominantly find application in the pharmaceutical, nutraceutical, food and beverages, cosmetic and other industries. The company offers a diverse range of cellulose-based chemicals, each serving specialised functions across various industries. Sodium CMC, a versatile product, is used as a thickener, binder, and gelling agent in pharmaceuticals, food & beverages, cosmetics, and industrial applications such as oil drilling, under the brand "Rheollose®".

Objective of Patel Chem Specialities IPO

• Funding the capital expenditure requirements of the company towards setting up a plant at Indrad, Mahesana, for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) – Corn Starch Base & Potato Starch Base, and Calcium Carboxymethylcellulose (CMC).

• General corporate purposes.

Industry Outlook

Transformed over the years into a vibrant sector, the Indian pharma industry currently ranks third in pharmaceutical production by volume. The pharmaceutical industry in India is the third-largest in the world in terms of volume and the 14th largest in terms of value. The pharma sector presently contributes around 1.72% of the country’s GDP. The market size of India's pharmaceutical industry is expected to reach US$6,500 crores by 2024, approximately US$13,000 crores by 2030, and around US $45,000 crores by 2047.

The food and beverage market was estimated at US$3,012 crores in 2015 and is expected to reach US$14,200 crores by 2020, with a compounded annual growth rate (CAGR) of 36.34%. The sector is mainly dominated by traditional operators. The brands and restaurant chains, both of Indian origin and multinationals, have not optimally penetrated the market so far. By 2025, India is set to become the third-largest consumer economy, with a nominal year-over-year expenditure growth of 12%, which is more than double the anticipated global rate of 5%.

The Indian cosmetics industry is primarily categorised into skincare, haircare, oral care, fragrances, and colour cosmetics segments. It currently has an overall market standing of US$ 650 crores and is expected to grow to around US$ 2,000 crores by 2025, with a CAGR of 25%. In comparison, the global cosmetics market is growing steadily at a 3.7% CAGR and is expected to reach around US$ 48,800 crores by 2025. This means that by 2025, India will constitute around 3% to 4% of the total global cosmetics market and become one of the top five global markets by revenue.

Company Information

Patel Chem Specialities Limited operates in the field of speciality chemicals, particularly focusing on the production of cellulose-based excipients. They manufacture a diverse range of products that are critical to various industries, including pharmaceuticals, food and beverages, cosmetics, and numerous industrial applications. These chemicals are fundamental in the formulation of essential products such as tablets, food additives, personal care items, and industrial formulations. Their products play vital roles as binders, disintegrants, thickeners, stabilisers, and gelling agents, each serving a specialised function across multiple sectors. Since inception, they have been manufacturing Carboxymethyl Cellulose Sodium (Sodium CMC), Microcrystalline Cellulose (MCC), Carboxymethyl Cellulose Calcium (CMC Calcium), Croscarmellose Sodium (CCS), Sodium Starch Glycollate (SSG), and Sodium Monochloro Acetate (SMCA).

Strengths of Patel Chem Specialities IPO

• Product portfolio.
  
• Global presence.
  
• Diversified customer base.
  
• Continuous innovation and consistent quality.
  
• Strategically located manufacturing facilities.
  

Risks of Patel Chem Specialities IPO

• An inability to procure the desired quality, quantity of their raw materials in a timely manner and at reasonable costs, or at all.
  
• Any loss of business from Egypt, the United States, Russia, South Korea, the United Kingdom, Japan and Germany.
  
• Any adverse changes in the conditions affecting the performance of certain other industries which they are serving, particularly pharmaceuticals, food and beverages, cosmetics, etc.
  
• Depletion of forest reserves could lead to a reduction in the availability of raw materials, potentially causing an increase in the cost of raw materials.
  
• The unexpected loss, shutdown or slowdown of operations at their manufacturing unit.
  

Source: All the financial information for listed industry peers mentioned above is on a Consolidated basis sourced from the Annual Reports of the peer company or their financial results uploaded on the NSE website for the year ended March 31, 2025.

Notes: 1. P/E Ratio has been computed based on the closing market price of equity shares on the NSE on July 09, 2025 divided by the Diluted EPS of March 31, 2025. 2. RoNW is computed as net profit after tax divided by the closing net worth. Net worth has been computed as sum of share capital and reserves and surplus. 3. NAV is computed as the closing net worth divided by the weighted average number of equity shares

Anchor Investor Information: 24 July 2025

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Cumulative Capital Private Limited Unistone Capital Private Limited

Registrar for the IPO is MUFG Intime India Private Limited

Business Model

The company earns its revenue by offering a diverse range of cellulose-based chemicals, each serving specialised functions across various industries.

Company Growth Trajectory

During fiscal 2025, the revenue from operations was ₹105.09 crore as compared to ₹82.36 crore in fiscal 2024. The increased operational revenue can be attributed to better capacity utilisation as a result of the additional demand for their products. The exports of their company increased by 58.57% in fiscal 2025 as compared to fiscal 2024, and domestic sales increased by 22.61% in fiscal 2025 as compared to fiscal 2024.

During fiscal 2025, the other income was ₹0.46 crore as compared to ₹0.36 crore in fiscal 2024. The other income increased by 29.42% in fiscal 2025 as compared to fiscal 2024, aided by higher interest income, subsidy, and duty drawback income.

The Profit After Tax (PAT) for fiscal 2025 reached ₹10.57 crore, marking an increase from ₹7.66 crore in fiscal 2024. In fiscal 2024, PAT constituted 10.01% of the total revenue, in contrast to 9.26% in fiscal 2024.

Company Market Position

They have successfully established a strong global presence, exporting their products to over 15 countries, including the USA, Germany, the UK, Japan, China, Australia, and many more. Their expertise in producing high-quality excipients has enabled them to carve out a niche in the cellulose-based chemicals market, driven by their adherence to international quality standards such as US-DMF, GMP, ISO 9001:2015, etc.

How To Check Allotment Status of Patel Chem Specialities IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar MUFG Intime India Private Limited . To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Patel Chem Specialities Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MUFG Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Patel Chem Specialities Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Patel Chem Specialities IPO

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI