Deepak Chemtex
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Nov 2023 – 01 Dec 2023
- Listing date
- 06 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹80 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹23.04 Cr
- Market cap at offer price
- ₹86.91 Cr
- Promoter holding
- 99.40% → 73.05% pre-issue → post-issue
- ISIN
- INE0RDM01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Aawashi, 28/1A, A/P Adgul Aawashi, Lote, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 8,17,600 | — | — |
| Market maker | 1,47,200 | — | — |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.89 | — |
| P/E (×) | 10.14 | — |
| Market cap | — | ₹86.91 Cr |
Key performance indicators
- Return on net worth
- 40.17%
- ROCE
- 49.65%
- Debt / equity
- 0.09
- PAT margin
- 13.49%
- NAV per share
- ₹19.65
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Deepak Chemtex
Deepak Chemtex Limited (DCL) was originally incorporated as Deepak Chemtex Private Limited on June 10, 1997, converted into a public limited company vide fresh certificate of incorporation dated September 04, 2023, and has its registered office and factory at Aawashi, Lote, Ratnagiri, Maharashtra. The company is primarily engaged in manufacturing colorants — formulations of chemical intermediates, pigments or dyes and additives used to add colour to various consumables — spanning a complete range of FD&C colours used in confectionery, bakery, desserts, beverages, dairy products, seasonings, pet foods, pharmaceutical products, cosmetics and personal care, plus salt-free dyes for the inkjet industry, pond dyes, and colorants for car wash products, portable sanitation cleaners, detergent & soap, fuel/oil/lubricants, smoke, seed treatment, crop protection, fertilizer indicators and floral dyes. It operates a single manufacturing facility in Ratnagiri district equipped with glass-lined reactors and stainless steel equipment, accredited with ISO 9001:2015, HALAL and KOSHER certifications, using processes such as sulphonation, condensation, bromination, oxidation, reduction, high-pressure reactions and purification. DCL sells business-to-business to around 62 domestic customers and over 17 global customers in more than 10 countries (as of March 31, 2023), exporting to China, France, Kenya, Mexico, Europe, Japan, Australia, the United Kingdom and the United States; exports contributed 46.42% of revenue in the stub period ended September 30, 2023. It earns revenue from manufacturing operations (₹1,921.77 lakhs) and trading operations (₹252.63 lakhs), totalling ₹2,174.40 lakhs in the stub period ended September 30, 2023 (FY2023: ₹4,670.29 lakhs; FY2022: ₹5,410.87 lakhs; FY2021: ₹2,955.66 lakhs). Its commercialized portfolio expanded from around 50 products in Fiscal 2021 to around 100 products in Fiscal 2023, and it operates through two subsidiaries: DCPL Speciality Chemicals Private Limited (India) and wholly owned South West Chemicals Corporation (New Jersey, USA).
Company Analysis
from RHPDeepak Chemtex Limited is an Indian specialty-chemicals company that manufactures colorants — FD&C (Food, Drug and Cosmetic) colours, salt-free inkjet dyes, pond dyes and other dyes/pigments — serving the food, pharmaceutical, cosmetics, household-industrial-institutional (HI&I) cleaning, agriculture and industrial sectors.
Deepak Chemtex Limited (DCL) was originally incorporated as Deepak Chemtex Private Limited on June 10, 1997, converted into a public limited company vide fresh certificate of incorporation dated September 04, 2023, and has its registered office and factory at Aawashi, Lote, Ratnagiri, Maharashtra. The company is primarily engaged in manufacturing colorants — formulations of chemical intermediates, pigments or dyes and additives used to add colour to various consumables — spanning a complete range of FD&C colours used in confectionery, bakery, desserts, beverages, dairy products, seasonings, pet foods, pharmaceutical products, cosmetics and personal care, plus salt-free dyes for the inkjet industry, pond dyes, and colorants for car wash products, portable sanitation cleaners, detergent & soap, fuel/oil/lubricants, smoke, seed treatment, crop protection, fertilizer indicators and floral dyes. It operates a single manufacturing facility in Ratnagiri district equipped with glass-lined reactors and stainless steel equipment, accredited with ISO 9001:2015, HALAL and KOSHER certifications, using processes such as sulphonation, condensation, bromination, oxidation, reduction, high-pressure reactions and purification. DCL sells business-to-business to around 62 domestic customers and over 17 global customers in more than 10 countries (as of March 31, 2023), exporting to China, France, Kenya, Mexico, Europe, Japan, Australia, the United Kingdom and the United States; exports contributed 46.42% of revenue in the stub period ended September 30, 2023. It earns revenue from manufacturing operations (₹1,921.77 lakhs) and trading operations (₹252.63 lakhs), totalling ₹2,174.40 lakhs in the stub period ended September 30, 2023 (FY2023: ₹4,670.29 lakhs; FY2022: ₹5,410.87 lakhs; FY2021: ₹2,955.66 lakhs). Its commercialized portfolio expanded from around 50 products in Fiscal 2021 to around 100 products in Fiscal 2023, and it operates through two subsidiaries: DCPL Speciality Chemicals Private Limited (India) and wholly owned South West Chemicals Corporation (New Jersey, USA).
Objects of the Issue
- Funding capital expenditure towards installation of plant & machinery in our existing premises ₹54.50 lakhs p.74
- Investment in our subsidiary DCPL Speciality Chemicals Private Limited for financing its capital expenditure towards installation of plant and machinery ₹269.84 lakhs p.75
- Funding to meet working capital requirements ₹1250.00 lakhs p.76
- General Corporate Purpose p.77
Issue Structure
- Total Issue
- Initial Public Offer of upto 28,80,000 Equity Shares of face value ₹10 each at an issue price of ₹ [●] per Equity Share, aggregating up to ₹ [●] Lakhs (out of which 1,47,200 Equity Shares are reserved for the Market Maker and the Net Issue is 27,32,800 Equity Shares); the Issue and Net Issue will constitute 26.51% and 25.15% respectively of the post-issue paid-up equity share capital
- Fresh Issue
- Entire issue constitutes a fresh issue of upto 28,80,000 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹10
Business Model
Manufactures and sells colorants (lake colours, dyes and pigments) on a B2B basis to domestic and international customers across food, cosmetics, pharmaceutical, HI&I cleaning, agricultural and industrial end-uses, supplemented by trading of stock-in-trade; in the stub period ended September 30, 2023, revenue from operations of ₹2,174.40 lakhs comprised ₹1,921.77 lakhs from manufacturing operations and ₹252.63 lakhs from trading operations, with export sales of ₹1,009.32 lakhs (46.42% of revenue).
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Saurabh Deepak Arora | Promoter (Chairman & Managing Director) | 89.40% | 65.70% |
| Trishla Baid | Promoter (Whole-Time Director & CFO) | 10.00% | 7.35% |
| Chandan Baid | Promoter Group | 0.00% | 0.00% |
| Sidharth Baid | Promoter Group | 0.00% | 0.00% |
| Narendra Kumar Baid | Promoter Group | 0.00% | 0.00% |
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.