Indian Emulsifiers
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 May 2024 – 16 May 2024
- Listing date
- 22 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹132 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹42.39 Cr
- Market cap at offer price
- ₹161 Cr
- Promoter holding
- 65.25% → 48.11% pre-issue → post-issue
- ISIN
- INE0RRU01016
- Registrar
- Maashitla Securities Pvt.Ltd.
- Lead managers
- Ekadrisht Capital Pvt.Ltd.
- Registered office
- Shop 206, Foor-2, Sumer Kendra, Shivram Seth, Amrutwar Road Near Doordarshan Kendra, Off Pandurang Budhwar Marg, Worli, 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 | 9,10,000 | — | — |
| Market maker | 1,61,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹132
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,32,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,64,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,24,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,56,000 |
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 (₹) | 4.32 | 7.36 |
| P/E (×) | 30.56 | 17.93 |
| Price to book (×) | 4.51 | — |
| Market cap | — | ₹161 Cr |
Key performance indicators
- Return on net worth
- 25.60%
- ROCE
- 38.03%
- Debt / equity
- 0.51
- PAT margin
- 13.87%
- NAV per share
- ₹29.26
- Price to book
- 4.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Indian Emulsifiers
Indian Emulsifiers Limited was incorporated as a private limited company on December 05, 2020, and converted to a public limited company on January 05, 2024. The company manufactures specialty chemicals with a focus on tailor-made solutions. It operates a manufacturing facility at Lote Parshuram MIDC in Ratnagiri, Maharashtra, with a production capacity of 4,800 metric tons per annum (as of March 31, 2023). The facility is equipped with process control systems, an R&D centre, quality control and application laboratories. The company is ISO 9001:2015 certified and serves multiple industries including mining, textile, cleaning, PVC/rubber, personal care, and food sectors. It generates revenue through the direct sale of specialty chemicals to customers across these industries.
Company Analysis
from RHPIndian Emulsifiers Limited manufactures specialty chemicals including esters, phosphate esters, imidazolines, succinimides, sulfosuccinates, and specialty emulsifiers for mining, textile, cleaning, PVC/rubber, personal care, and food industries.
Indian Emulsifiers Limited was incorporated as a private limited company on December 05, 2020, and converted to a public limited company on January 05, 2024. The company manufactures specialty chemicals with a focus on tailor-made solutions. It operates a manufacturing facility at Lote Parshuram MIDC in Ratnagiri, Maharashtra, with a production capacity of 4,800 metric tons per annum (as of March 31, 2023). The facility is equipped with process control systems, an R&D centre, quality control and application laboratories. The company is ISO 9001:2015 certified and serves multiple industries including mining, textile, cleaning, PVC/rubber, personal care, and food sectors. It generates revenue through the direct sale of specialty chemicals to customers across these industries.
Objects of the Issue
- Funding of Capital Expenditure requirements of our Company towards purchase of Plant & Machinery, Civil work and installation cost thereon ₹2,091.54 lakhs p.22
- Funding Working Capital Requirements of our Company ₹850.00 lakhs p.22
- General Corporate Purposes p.22
- Funding of capital expenditure requirements towards plant & machinery, civil work and installation cost ₹2,091.54 lakhs p.83
- Funding Working Capital Requirements ₹850.00 lakhs p.89
- General corporate purposes [●] (not to exceed 25% of gross proceeds) p.92
- —
Issue Structure
- Total Issue
- Up to ₹[●] Lakhs (32,11,000 equity shares of ₹10 each at ₹[●] per share)
- Fresh Issue
- Up to 32,11,000 Equity Shares aggregating up to ₹[●] Lakhs
- Offer for Sale
- Nil (entire issue constitutes fresh issue of equity shares)
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/- per equity share
Business Model
The company manufactures and supplies specialty chemicals directly to customers. Revenue is generated through sales of specialty chemicals including esters, phosphate esters, imidazolines, succinimides, sulfosuccinates, and specialty emulsifiers to customers in mining (27.02% of revenue as of December 31, 2023), personal care (24.02%), PVC/rubber (20.99%), textile (13.99%), cleaning (7.00%), and other industries (6.98%).
Business Segments
SWOT Analysis
- • ISO certification and quality control infrastructure(p.21)
- • Multipurpose manufacturing facility with technical flexibility(p.21)
- • Expanded production capacity(p.21)
- • Diverse customer base across multiple industries(p.21)
- • Strong revenue growth trajectory(p.23)
- • Dependence on experienced Board and Key Managerial Personnel(p.46)
- • Scalable and diversified manufacturing operations(p.96)
- • Experienced management team(p.96)
- • Wide product portfolio(p.96)
- • Experienced promoter with 10+ years in specialty chemicals sales and distribution(p.128)
- • Diversified product portfolio across multiple specialty chemical segments(p.128)
- • ISO 9001:2015 certified manufacturing facility with advanced R&D capabilities(p.116)
- • Scalable business model with flexible manufacturing capacity(p.121)
- • Strong financial performance with improving EBITDA margins(p.117)
- • Experienced management with 10+ years in specialty chemicals business(p.212)
- • ISO 9001:2015 certified with modern manufacturing facility(p.212)
- • Diversified product portfolio with strong profitability growth(p.215)
- • Strong EBITDA margin of 22.99% indicating operational efficiency(p.213)
- • Multipurpose manufacturing facility with flexibility to meet diverse customer needs(p.212)
- • High customer concentration risk(p.30)
- • Heavy dependence on few suppliers(p.31)
- • Low capacity utilization(p.32)
- • Limited operating history as a company(p.32)
- • High working capital intensity(p.36)
- • Compliance violations and administrative delays(p.33)
- • Incomplete commitment of capital expenditure funds(p.32)
- • Negative operating cash flows in recent periods(p.41)
- • Heavy dependence on key managerial personnel(p.46)
- • No alternate financing arrangements for capital requirements(p.46)
- • Unreliable management estimates and projections(p.46)
- • Inventory management risks(p.47)
- • Exposure to employee fraud and misconduct(p.47)
- • Concentrated revenue from single geography(p.48)
- • No dividend guarantee(p.46)
- • High dependence on crude oil prices affecting raw material costs and margins(p.128)
- • Limited market penetration outside domestic market requiring significant marketing spend(p.128)
- • Uncertain demand leading to high inventory and working capital costs(p.128)
- • High debt-to-equity ratio of 0.51x indicating moderate leverage(p.117)
- • Significant dependence on limited customer base for revenue(p.219)
- • High debt burden with Debt-Equity ratio of 0.51(p.213)
- • Increased inventory levels reducing operational efficiency(p.217)
- • Pending tax demands from Income Tax Department(p.222)
- • Very recent company incorporation with limited operational history(p.212)
- • Expand product portfolio(p.39)
- • Grow manufacturing capacity to capitalize on industry opportunities(p.39)
- • Increase operational efficiency(p.39)
- • Continue innovation focus across customer segments(p.39)
- • Strong specialty chemicals industry growth in India(p.21)
- • Expansion into new geographic markets and regions(p.91)
- • Capacity expansion through capital expenditure(p.82)
- • Enhanced market visibility through listing(p.82)
- • Working capital to support growth initiatives(p.91)
- • India's specialty chemicals market growing at 12% CAGR with rising global competitiveness(p.111)
- • Global supply chain shift away from China benefiting Indian manufacturers(p.111)
- • Growing demand for specialty chemicals in emerging markets including India(p.109)
- • Expanding applications in automotive emission control and sustainable solutions(p.127)
- • Strong untapped export market opportunity for specialty chemicals(p.128)
- • Strategy to expand into higher-margin specialty chemicals segments(p.216)
- • Growing demand across multiple industry verticals(p.212)
- • Capacity expansion with increased reactor capability(p.212)
- • Export capabilities with Import-Export Code registration(p.229)
- • Competition from domestic and multinational corporations(p.38)
- • Volatility in raw material prices without long-term supply contracts(p.37)
- • Risk of supply disruptions and raw material shortages(p.37)
- • Regulatory and environmental compliance risks(p.35)
- • Hazardous chemical handling and industrial accident risks(p.31)
- • Risk of manufacturing facility disruptions(p.36)
- • Government policy and regulatory changes(p.36)
- • Product quality and defect liability exposure(p.33)
- • Global economic and political volatility(p.47)
- • Regulatory framework changes(p.48)
- • Natural calamities and political instability(p.48)
- • Interest rate fluctuations(p.48)
- • Indian economy slowdown risk(p.48)
- • Volatility in equity share prices post-listing(p.48)
- • Market price decline risk(p.49)
- • Infectious disease outbreaks(p.49)
- • Foreign investor restrictions(p.50)
- • Political instability and deregulation policy changes(p.51)
- • Financial market instability contagion(p.51)
- • Terrorist attacks and civil unrest(p.52)
- • India sovereign rating downgrade(p.52)
- • High global competition in specialty chemicals industry(p.128)
- • Regulatory and government policy risks affecting industry margins(p.128)
- • Post-COVID raw material supply chain disruptions and scarcity risks(p.109)
- • Commodity chemical sector exposure to cyclical demand and pricing pressures(p.119)
- • Significant raw material price volatility affecting margins(p.216)
- • Global supply chain disruptions impacting operations(p.216)
- • Intense competition from organized and unorganized players(p.220)
- • Interest rate risk affecting debt service obligations(p.218)
- • Litigation involving group company in insolvency proceedings(p.224)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Yash Tikekar | Promoter | 65.25% | 48.11% |
| Yash Tikekar | Promoter | 65.25% | 48.11% |
| Yash Tikekar | Promoter and Chairman and Managing Director | 65.25% | 48.11% |
| Yash Tikekar | Promoter | 65.25% | — |
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.