MCON Rasayan India
Fixed Price issueSME₹6.84 Cr issue
+20.00%
Listing gain over issue price
Issue size
₹6.84 Cr
1 lot at cut-off
₹1,20,000
Lot size
3,000shares
Open
06 Mar 2023
Close
10 Mar 2023
Allotment
15 Mar 2023
Listing
20 Mar 2023
Listing performance
Issue price
₹40
Listed at
₹48
Listing-day close
₹50.40
Latest price
₹40.40
Close on 22 Oct 2026
Listing gain
+20.00%
Return since issue
+1.00%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 Mar 2023 – 10 Mar 2023
- Listing date
- 20 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹6.84 Cr
- Market cap at offer price
- ₹25.22 Cr
- Promoter holding
- 91.45% → 66.64% pre-issue → post-issue
- ISIN
- INE0O4M01019
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- 101/A, 1st floor, Maxheal House, Plot-169, CTS-104 Bangur Nagar, Goregaon West, Near Ayyappa Temple, 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 |
|---|---|---|---|
| Market maker | 90,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,80,000 |
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
₹40 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.96 | — |
| P/E (×) | 13.51 | — |
| Market cap | — | ₹25.22 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 20.06%
- ROCE
- 9.93%
- Debt / equity
- 3.35
- PAT margin
- 2.31%
- EBITDA margin
- 6.66%
- NAV per share
- ₹14.75
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About MCON Rasayan India
MCON Rasayan India Limited was incorporated as a private limited company on September 22, 2016 and converted to a public company in December 2022. The company manufactures, markets and sells modern building materials and construction chemicals with a suite of more than 80 products. Its portfolio includes powder products such as ready-mix plaster, tile adhesives, block adhesives, wall putty, micro concrete, polymer mortar, engineering non-shrink grouts and floor hardeners, as well as liquid products including poly-urethane based liquid membranes, bonding agents, paints, anti-corrosive coatings, concrete admixtures and curing compounds. All products are marketed under the MCON brand. The company operates manufacturing units in Gujarat (Sarigam in Valsad and Chikli in Navsari) and has an R&D facility in Navi Mumbai.
Company Analysis
from RHPMCON Rasayan India Limited manufactures and sells modern building materials and construction chemicals under the MCON brand, with over 80 products spanning powder and liquid formulations for the construction industry.
MCON Rasayan India Limited was incorporated as a private limited company on September 22, 2016 and converted to a public company in December 2022. The company manufactures, markets and sells modern building materials and construction chemicals with a suite of more than 80 products. Its portfolio includes powder products such as ready-mix plaster, tile adhesives, block adhesives, wall putty, micro concrete, polymer mortar, engineering non-shrink grouts and floor hardeners, as well as liquid products including poly-urethane based liquid membranes, bonding agents, paints, anti-corrosive coatings, concrete admixtures and curing compounds. All products are marketed under the MCON brand. The company operates manufacturing units in Gujarat (Sarigam in Valsad and Chikli in Navsari) and has an R&D facility in Navi Mumbai.
Construction chemicalsModern building materialsConstruction materials manufacturing
Objects of the Issue
- Funding the working capital requirements of the company ₹450 lakhs p.21
- General Corporate Purposes ₹164 lakhs p.21
- Funding the working capital requirements of the company ₹450.00 lakhs p.74
- General Corporate Purposes ₹164.00 lakhs p.74
- Funding capex for the greenfield manufacturing plant at Ambethi, Valsad, Gujarat, including civil construction, plant and machinery, and other equipment ₹800 Lakhs p.120
Issue Structure
- Total Issue
- ₹684 lakhs
- Fresh Issue
- 17,10,000 equity shares of face value of ₹10 each aggregating ₹684 lakhs
- Price Band
- Fixed price of ₹40 per equity share
- Lot Size
- Lot size: 3000 equity shares and in multiples of 3000 thereafter; subject to a minimum allotment of 3000 Equity Shares
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and sells modern building materials and construction chemicals through a distribution network of dealers. Revenue is generated from the sale of powder and liquid construction chemical products to customers across the building construction segment.
Business Segments
Products such as ready-mix plaster, tile adhesives, block adhesives, wall putty, micro concrete & polymer mortar, engineering non shrink grouts and floor hardeners widely used in the building construction segment
Products such as poly-urethane (PU) based liquid membrane, bonding agents, paints, anti-corrosive coatings, concrete admixtures and curing compounds
Ready mix plaster, tile adhesives, block adhesives, wall putty, micro concrete & polymer mortar, engineering non shrink grouts and floor hardeners used in building construction
Poly-urethane (PU) based liquid membrane, bonding agents, paints, anti-corrosive coatings, concrete admixtures and curing compounds
Manufactures liquid-based construction chemicals including waterproofing admixtures, waterproof coatings, bonding agents, polymers, and paints. Top products include MCON LW (waterproofing admixture), MCON Magic Coat series (waterproof coatings), MCON Ultra Gyp Bond (bonding agent), and MCON Plaster Bond. Current installed capacity at Unit I: 500 MTPA.
Manufactures powder-based construction chemicals including ready-mix plasters, block adhesives, tile adhesives, micro mortars, wall putty, and floor hardeners. Top products include MCON Ready Plaster, MCON Block Mortar, MCON NSA Grey tile adhesive, and MCON Hard Floor. Current installed capacity: Unit I (Powder) 2,000 MTPA; Unit II (Powder) 12,500 MTPA.
Manufactures ready-mix plaster, tile adhesives, block adhesives, wall putty, micro concrete, polymer mortar, engineering non-shrink grouts and floor hardeners for building construction segment
Manufactures polyurethane (PU) based liquid membrane, bonding agents, paints, anti-corrosive coatings, concrete admixtures and curing compounds
SWOT Analysis
Strengths
- • Established brand portfolio with 80+ products in construction materials and chemicals(p.20)
- • Long-term customer relationships with top 5 customers representing majority of revenue(p.27)
- • Quality certifications and accreditations from independent bodies(p.30)
- • Operational presence in growth-oriented Gujarat region with manufacturing units(p.36)
- • Comprehensive product portfolio with 80+ construction chemical products(p.118)
- • Established distribution network across western India with 100+ distributors serving 1,300+ retailers(p.117)
- • Strategic manufacturing locations in Valsad and Navsari, Gujarat for serving western regional markets(p.116)
- • In-house R&D facility with modern equipment and experienced personnel(p.118)
- • ISO certifications and quality standards compliance (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, CE marking)(p.116)
- • Strong financial performance with revenue growth and improving profitability(p.117)
- • Stringent quality testing procedures ensuring industry standard compliance(p.117)
- • Strategic manufacturing locations in industrial hubs with proximity to key markets(p.119)
- • Multiple quality certifications and rigorous testing standards(p.119)
- • Experienced promoter with 14+ years in construction chemicals industry(p.119)
- • Comprehensive product portfolio covering entire construction lifecycle(p.120)
- • In-house R&D facility with new product development track record(p.129)
- • Strong existing institutional sales relationships with government bodies(p.120)
- • Diversified product portfolio with 80+ products across powder and liquid forms for construction(p.215)
- • Strategic manufacturing locations in western regions with installed capacity of 36,000 MTPA powder and 6,000 MTPA liquid by end of FY2023(p.215)
- • Strong revenue growth trajectory with 57.16% CAGR from FY20 to FY22(p.216)
- • ISO and IS certifications for quality, environment, and occupational health standards(p.215)
- • Improving profitability with net profit after tax growing 417.45% from FY20 to FY21(p.223)
Weaknesses
- • High customer concentration with top 5 customers representing 55-84% of revenue(p.27)
- • No long-term agreements with major customers creating revenue volatility(p.27)
- • Unsecured loans from Promoter and Directors that can be recalled at any time(p.29)
- • Negative operating cash flows in recent periods(p.33)
- • Manufacturing concentrated in single region (Gujarat) creating geographic concentration risk(p.36)
- • Trademark applications objected by authorities with uncertain outcomes(p.31)
- • High debt levels relative to equity capital(p.117)
- • Concentrated geographic presence limited to western India (Maharashtra, Gujarat, Rajasthan)(p.117)
- • Limited scale compared to industry peers (total installed capacity 36,000-42,000 MTPA vs larger competitors)(p.116)
- • Reliance on distributor and dealer network rather than direct customer relationships(p.118)
- • Third manufacturing plant still under construction with delayed operational status(p.116)
- • Dependence on leased manufacturing facility (Unit II) with near-term closure plan(p.121)
- • High debt burden with significant short-term borrowings(p.179)
- • Limited geographic presence concentrated in western India(p.120)
- • Trademark applications facing objections with limited registrations(p.133)
- • Inventory management challenges with high stock levels(p.172)
- • Thin profit margins, with net profit margin of only 0.41% in FY20 and 2.31% in FY22(p.216)
- • Significant debt burden with debt-to-equity ratio of 1.41 pre-Issue (though improving to 0.50 post-Issue)(p.210)
- • Low debt service coverage ratio of 0.15 to 0.20, indicating difficulty in servicing debt from operating cash flows(p.208)
- • Negative operating cash flow of ₹195.83 lakhs in FY22 despite profit of ₹44.40 lakhs(p.223)
- • Dependence on limited distribution channels with over 100 distributors concentrated in Maharashtra, Gujarat and Rajasthan(p.215)
Opportunities
- • Global construction chemicals market expected to grow to USD 70 billion by FY26 with ~7% CAGR(p.20)
- • Expansion of manufacturing capacity with new Unit III at Ambethi, Valsad(p.31)
- • New product launches to capture premium segment(p.27)
- • Growing urbanization and infrastructure development driving construction activity(p.20)
- • Construction chemical market expected to grow at ~13% CAGR through FY29 driven by infrastructure investment(p.98)
- • Government infrastructure spending and Bharatmala program creating demand for construction chemicals(p.115)
- • Urbanization and rural development driving increased construction activities(p.115)
- • Government initiatives including Pradhan Mantri Awas Yojana, Smart Cities, and PMAY supporting construction sector(p.111)
- • Repair and rehabilitation segment offering significant untapped growth opportunity(p.108)
- • Retail segment growth through increased disposable income and brand consciousness in India(p.115)
- • Expansion potential into new geographic markets beyond western India(p.77)
- • Expansion of institutional sales to large real estate developers and government bodies(p.120)
- • Greenfield manufacturing plant expansion to increase capacity by 18,000 MTPA(p.120)
- • Geographic expansion into adjacent states and overseas markets(p.120)
- • Brand expansion and visibility enhancement through marketing initiatives(p.120)
- • Expanding distribution network to new states with identified market potential(p.121)
- • Cost reduction through operational efficiency improvements(p.121)
- • Expansion into new geographical markets beyond western region(p.217)
- • Capacity expansion through greenfield third plant at Ambethi, Valsad expected operational by end of FY2023(p.215)
- • Growing demand in construction sector post-COVID recovery(p.217)
Threats
- • Seasonal variations and cyclicality in construction industry affecting demand(p.28)
- • Introduction of substitute materials and new construction techniques reducing demand(p.29)
- • Volatility in raw material prices and supply constraints(p.31)
- • Intense competition from organized and unorganized players in industry(p.39)
- • Economic slowdown in India affecting construction activity and demand(p.43)
- • Natural disasters and pandemics disrupting operations and supply chains(p.44)
- • High volatility in raw material and commodity prices impacting profitability(p.103)
- • Intense competition from large MNCs and unorganized small manufacturers in fragmented market(p.110)
- • Low awareness among customers about construction chemical benefits leading to use of low-cost substitutes(p.110)
- • Price sensitivity and cost-consciousness of Indian construction market(p.110)
- • Absence of stringent quality standards enabling sub-standard product competition(p.110)
- • Economic slowdown risk and reduced infrastructure investment impacting demand(p.94)
- • Dependence on economic growth in construction sector which is cyclical in nature(p.95)
- • High competition from established players in construction chemicals industry(p.132)
- • Dependence on raw material availability and price fluctuations(p.131)
- • Regulatory compliance obligations under multiple environmental and labor laws(p.135)
- • Risk of inability to protect and strengthen existing brands and trademarks(p.134)
- • Cyclicality in construction and infrastructure development industry(p.132)
- • Intense competition from organized and unorganized sector with low entry barriers(p.217)
- • Vulnerability to transportation and logistics disruptions and cost increases(p.217)
- • Exposure to volatile economic conditions and slowdowns affecting demand(p.217)
- • Regulatory changes could adversely impact operations(p.216)
- • Dependence on key management personnel(p.216)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mahesh Ravji Bhanushali | Promoter | 76.20% | — |
| Mahesh Ravji Bhanushali | Promoter | 76.20% | 55.53% |
| Puja Mahesh Bhanushali | Promoter Group | 2.47% | 1.80% |
| Chetan Ravji Bhanushali | Promoter Group | 10.31% | 7.51% |
| Nilam Chetan Bhanushali | Promoter Group | 2.47% | 1.80% |
| Mahesh Ravji Bhanushali | Promoter | 35,00,285 shares (76.20%) | — |
Leadership
Mahesh Ravji Bhanushali · Chairman and Managing Director
Veenita Harshad Thakkar · CFO
Kunal Ashok Borkar · Company Secretary and Compliance Officer
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.
MCON Rasayan India IPO FAQs
What is the lot size of MCON Rasayan India IPO?
The minimum lot size of MCON Rasayan India IPO is 3,000 shares. One lot costs ₹1,20,000 at the cut-off price.
When does MCON Rasayan India IPO open and close?
MCON Rasayan India IPO opened for subscription on 06 Mar 2023 and closed on 10 Mar 2023.
What is the listing date of MCON Rasayan India IPO?
MCON Rasayan India IPO listed on 20 Mar 2023.