Bhatia Colour Chem SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 24 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹80 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹40 Cr
- Market cap at offer price
- ₹97.87 Cr
- Promoter holding
- 74.65% → 44.14% pre-issue → post-issue
- ISIN
- INE0KQ001017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- Plot No.A/2/12, Road No.1 Udhna Udhyog Nagar, Sangh, Udhna, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,64,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹80
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,28,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,56,000 |
| S-HNI (max) | 7 | 11,200 | ₹8,96,000 |
| B-HNI (min) | 8 | 12,800 | ₹10,24,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹97.87 Cr |
About Bhatia Colour Chem SME
Bhatia Colour Chem Limited was incorporated on December 10, 2021, as a public limited company based in Surat, Gujarat. The company was established by three promoters—Bharat Bhatia, Rameshchand Bhatia, and Ravi Bhatia—who have over 15 years of experience in the trading and manufacturing of chemicals and dyes. The company produces finished textile auxiliaries and chemicals by mixing basic textile auxiliaries with standardized formulations. It manufactures foil binders, printing inks, and zari binders in various specifications. The company also trades in dyes and auxiliaries, primarily supplying to textile processing houses for dyeing and printing applications. In January 2022, the company acquired the running business of M/s Ravi Chem, a proprietorship concern. The company makes money through the manufacture and trading of these chemical products to the textile industry.
Company Analysis
from RHPBhatia Colour Chem Limited manufactures and trades in chemicals, dyes, and textile auxiliaries for the textile industry, spanning specialty chemicals and dyes sectors.
Bhatia Colour Chem Limited was incorporated on December 10, 2021, as a public limited company based in Surat, Gujarat. The company was established by three promoters—Bharat Bhatia, Rameshchand Bhatia, and Ravi Bhatia—who have over 15 years of experience in the trading and manufacturing of chemicals and dyes. The company produces finished textile auxiliaries and chemicals by mixing basic textile auxiliaries with standardized formulations. It manufactures foil binders, printing inks, and zari binders in various specifications. The company also trades in dyes and auxiliaries, primarily supplying to textile processing houses for dyeing and printing applications. In January 2022, the company acquired the running business of M/s Ravi Chem, a proprietorship concern. The company makes money through the manufacture and trading of these chemical products to the textile industry.
Objects of the Issue
- Acquire partnership firm M/s Polychem Exports ₹2100.00 lakhs p.43
- Working Capital ₹890.00 lakhs p.43
- General Corporate Purposes ₹970.00 lakhs p.43
- Acquisition of another partnership firm of the promoters p.66
Issue Structure
- Total Issue
- ₹4000.00 Lakhs
- Fresh Issue
- 50,00,000 Equity Shares of Face Value of ₹10 each at ₹80 per share aggregating to ₹4000.00 Lakhs
- Price Band
- Fixed Price of ₹80 per Equity Share
- Lot Size
- 1,600 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue through manufacturing and trading of textile auxiliaries, dyes, and chemicals. It produces finished textile auxiliaries and chemicals by mixing basic materials with standardized chemical formulations, and supplies these products primarily to textile processing houses for dyeing, printing, and finishing applications.
Business Segments
SWOT Analysis
- • Experienced promoters with 15+ years in chemical trading(p.20)
- • Established business acquisition strategy with immediate earnings contribution(p.16)
- • Strong formulation expertise and quality maintenance capabilities(p.12)
- • Growth in specialty chemicals sector providing tailwinds(p.62)
- • Experienced promoters with extensive industry knowledge(p.65)
- • Specialized in value-added printing products with R&D capability(p.65)
- • Dedicated R&D team and in-house laboratory capabilities(p.65)
- • Strong customer relationships and market access(p.67)
- • Single location operations concentrated in Surat only(p.17)
- • Rented premises with short-term lease arrangement(p.17)
- • High working capital requirements with extended customer credit periods(p.17)
- • Unsecured director loans repayable on demand(p.18)
- • Outstanding litigation against promoters(p.17)
- • Very recent incorporation with limited operational history(p.60)
- • Limited geographical area of operations(p.66)
- • Family-owned business structure(p.66)
- • Lack of professionalism in organizational structure(p.66)
- • Minimal property and asset ownership(p.68)
- • No trademark or intellectual property rights ownership(p.67)
- • India's growing share in global specialty chemicals market(p.12)
- • Global textile auxiliaries market growth trajectory(p.58)
- • Government PLI scheme support for chemical sector(p.61)
- • Acquisition of established partnership firm with operational synergies(p.47)
- • Recovery in domestic demand and specialty chemicals growth(p.12)
- • Geographic expansion beyond Surat to other states(p.66)
- • Inorganic growth through acquisitions(p.66)
- • Development of new product compositions(p.66)
- • Operational efficiency improvements(p.66)
- • Customer concentration risk post-acquisition(p.16)
- • Volatility in textile auxiliaries product pricing(p.18)
- • Economic sensitivity to India's growth and forex fluctuations(p.22)
- • Regulatory and policy changes(p.21)
- • Dependence on key promoters for strategic direction(p.19)
- • Raw material price and forex volatility(p.21)
- • Intense competitive environment(p.67)
- • Low-margin business model(p.66)
- • Severe impact from COVID-19 on textile industry(p.65)
- • Promoter litigation exposure from dishonored cheques(p.118)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharat Bhatia | Promoter | 18.25% | 10.79% |
| Rameshchand Bhatia | Promoter | 18.25% | 10.79% |
| Ravi Bhatia | Promoter | 4.99% | 2.94% |
| Bharat Brijlal Bhatia | Promoter | 18.25% | — |
| Rameshchand Chanduram Bhatia | Promoter | 18.25% | — |
| Ravi Ashokkumar Bhatia | Promoter | 4.99% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.