Patel Chem Specialities
Book Building issueSMEBSE₹58.80 Cr issue
+30.95%
Listing gain over issue price
Issue size
₹58.80 Cr
1 lot at cut-off
₹1,34,400
Lot size
1,600shares
Open
25 Jul 2025
Close
29 Jul 2025
Allotment
30 Jul 2025
Listing
01 Aug 2025
Listing performance
Issue price
₹84
Listed at
₹110
Listing-day close
₹104.50
Latest price
₹137.55
Close on 23 Oct 2026
Listing gain
+30.95%
Return since issue
+63.75%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Jul 2025 – 29 Jul 2025
- Listing date
- 01 Aug 2025
- Face value
- ₹1 per share
- Issue price
- ₹84 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹58.80 Cr
- Market cap at offer price
- ₹209 Cr
- Promoter holding
- 95.13% → 69.78% pre-issue → post-issue
- ISIN
- INE161701011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Cumulative Capital Pvt.Ltd.
- Registered office
- Plot No.272/4-5, Phase II, G.I.D.C Industrial Estate, Vatva Road, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 19,87,200 | — | — |
| Market maker | 3,53,600 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹84
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,34,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,68,800 |
| S-HNI (max) | 7 | 11,200 | ₹9,40,800 |
| B-HNI (min) | 8 | 12,800 | ₹10,75,200 |
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.
Shares allocated
19,87,200
Anchor portion
₹16.69 Cr
at ₹84 per share
Valuation and performance
Valuation at offer price
₹84 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.91 | 4.25 |
| P/E (×) | 14.21 | 19.76 |
| Price to book (×) | 4.11 | — |
| Market cap | — | ₹209 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 24.32%
- ROCE
- 36.26%
- Debt / equity
- 0.42
- PAT margin
- 10.01%
- EBITDA margin
- 14.97%
- NAV per share
- ₹20.44
- Price to book
- 4.11
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Patel Chem Specialities
Patel Chem Specialities Limited was incorporated on June 25, 2008, with a primary focus on manufacturing high-quality cellulose-based excipients. The company operates in the field of specialty chemicals, producing a diverse range of cellulose-based products including Sodium Monochloro Acetate (SMCA), Sodium Starch Glycolate (SSG), Croscarmellose Sodium (CCS), Carboxymethyl Cellulose Calcium (Calcium CMC), Sodium Carboxymethyl Cellulose (Sodium CMC), and Microcrystalline Cellulose (MCC). These products are critical to various industries as binders, disintegrants, thickeners, stabilizers, and gelling agents. The company has established a strong global presence, exporting to over 15 countries including the USA, Germany, UK, Japan, China, and Australia, while maintaining a significant domestic presence in India. The company adheres to international quality standards such as US-DMF, GMP, and ISO 9001:2015.
Company Analysis
from RHPPatel Chem Specialities Limited manufactures specialty chemicals, specifically cellulose-based excipients for pharmaceutical, nutraceutical, food and beverage, cosmetic, and industrial applications.
Patel Chem Specialities Limited was incorporated on June 25, 2008, with a primary focus on manufacturing high-quality cellulose-based excipients. The company operates in the field of specialty chemicals, producing a diverse range of cellulose-based products including Sodium Monochloro Acetate (SMCA), Sodium Starch Glycolate (SSG), Croscarmellose Sodium (CCS), Carboxymethyl Cellulose Calcium (Calcium CMC), Sodium Carboxymethyl Cellulose (Sodium CMC), and Microcrystalline Cellulose (MCC). These products are critical to various industries as binders, disintegrants, thickeners, stabilizers, and gelling agents. The company has established a strong global presence, exporting to over 15 countries including the USA, Germany, UK, Japan, China, and Australia, while maintaining a significant domestic presence in India. The company adheres to international quality standards such as US-DMF, GMP, and ISO 9001:2015.
specialty chemicalspharmaceuticalsnutraceuticalsfood and beveragescosmeticsindustrial applications
Objects of the Issue
- Funding capital expenditure to set up plant at Indrad, Mahesana for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) – Corn Starch Base & Potato Starch Base and Calcium Carboxymethylcellulose (CMC) 4,314.78 p.26
- General Corporate Purposes p.26
- Funding capital expenditure requirement of our company to Set up plant at Indrad, Mahesana for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) – Corn Starch Base & Potato Starch Base and Calcium Carboxymethylcellulose (CMC) ₹4,314.78 Lakhs p.86
- General corporate purposes [●] p.86
- Funding capex for the new manufacturing facility at Indrad, Mehsana to produce CCS, SSG, and Calcium CMC to tap growing demand p.150
- General corporate purposes and general corporate purposes p.100
Issue Structure
- Total Issue
- Up to 70,00,000 Equity Shares of Face Value ₹ 10/- each aggregating to ₹ [●] lakhs
- Fresh Issue
- Up to 70,00,000 Equity Shares of Face Value ₹ 10/- each aggregating to ₹ [●] lakhs
- Offer for Sale
- NIL
- Face Value
- ₹ 10/-
Business Model
The company manufactures cellulose-based excipients sold to pharmaceutical, nutraceutical, food and beverage, cosmetic, and industrial sectors. Revenue is generated through domestic sales (82.80% of revenue for FY 2025) and exports (17.20% of revenue for FY 2025). The company operates two manufacturing units: one at Vatva, Ahmedabad with installed capacity of 30,00,000 kgs, and one at Talod with installed capacity of 7,20,000 kgs for MCC production.
Business Segments
Manufacturing and sale of cellulose-based excipients for pharmaceutical applications
Manufacturing and sale of cellulose-based excipients for cosmetic applications
Manufacturing and sale of cellulose-based excipients for food and beverage applications
Manufacturing and sale of cellulose-based excipients for other industrial applications
Manufactures specialty excipients including Sodium Starch Glycolate (SSG), Croscarmellose Sodium (CCS), Calcium Carboxymethylcellulose (CMC), Sodium Carboxymethylcellulose (CMC), and Sodium Carboxymethyl Stearate (SMCA)
Engaged in the manufacture of Microcrystalline Cellulose (MCC). Production for the year ended March 31, 2025 was 6,42,700 kgs with 89.26% capacity utilization.
New facility being set up for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) – Corn Starch Base & Potato Starch Base and Calcium Carboxymethylcellulose (CMC)
Key chemical intermediate used in the production of Carboxymethyl Cellulose (CMC), Sodium Starch Glycolate (SSG), and other derivatives. Used in manufacturing of surfactants, detergents, and other industrial chemicals. Applications include pharmaceuticals, cosmetics, agricultural products, and production of drug APIs like Citrazine.
Modified starch that serves as a highly effective super disintegrant in pharmaceutical formulations. Derived from natural starch sources (corn or potato) and modified to enhance water absorption and rapid tablet/capsule disintegration. Also used in food, textile, paper, and adhesive applications.
Cross-linked polymer of sodium carboxymethyl cellulose designed to enhance disintegration properties of solid dosage forms. Known for rapid swelling and water absorption, facilitating fast breakdown of tablets and effective release of active pharmaceutical ingredients. Also used in food as an emulsifier.
Cellulose-based derivative used primarily as a super disintegrant in pharmaceutical and nutraceutical formulations. Also used in food, cosmetics, paper, textile, oil & gas, agriculture, and construction industries as thickening, binding, and stabilizing agent.
Cellulose derivative with excellent thickening, binding, and emulsifying capabilities. Produced by chemically modifying cellulose to improve solubility and functionality in aqueous systems. Used in pharmaceuticals (suspension, thickening, stabilizing), cosmetics, food (dairy, ice cream, baked goods, noodles), and industrial applications (oil drilling, paper, detergents, paints, textiles, ceramics, mining).
Highly purified fine white powder derived from cellulose extracted from wood pulp. Used as binder, filler, texturizer, and bulking agent. Primary use in pharmaceutical tablets for consistency and strength. Also used in food, nutraceuticals, cosmetics, textiles, and paper as texturizer, anticaking agent, stabilizer, and binder.
Manufacturing and sale of cellulose-based excipients including Sodium Monochloro Acetate (SMCA), Sodium Starch Glycolate (SSG), Croscarmellose Sodium (CCS), Carboxymethyl Cellulose Calcium (Calcium CMC), Sodium Carboxymethyl Cellulose (Sodium CMC), and Microcrystalline Cellulose (MCC)
Selling and distribution of chemical products
SWOT Analysis
Strengths
- • Established global export presence across 15+ countries with diversified customer base(p.25)
- • Adherence to international quality standards and certifications(p.25)
- • Diversified product portfolio across pharmaceutical, nutraceutical, food & beverage, cosmetic and industrial applications(p.25)
- • Revenue growth trajectory with strong profitability metrics(p.27)
- • Niche expertise in cellulose-based excipients manufacturing(p.25)
- • Strong revenue and profit growth trajectory(p.47)
- • Established manufacturing infrastructure with two operational facilities(p.87)
- • Expansion capacity targeting high-demand products(p.88)
- • Significant increase in installed capacity planned(p.88)
- • Diverse product portfolio across pharmaceutical excipients and fine chemicals(p.142)
- • Experienced promoter and management team with extensive industry knowledge(p.142)
- • Strong international presence with exports to 15+ countries(p.137)
- • Diversified customer base across multiple industries reducing dependency(p.144)
- • Strong quality certifications including US-DMF, GMP, ISO 9001:2015, HACCP, KOSHER, HALAL & FSSAI(p.148)
- • Revenue growth with CAGR reflecting business momentum(p.138)
- • Improving operational efficiency with strong profitability metrics(p.138)
- • Strategically located manufacturing facilities in high-productivity regions(p.145)
- • 14+ years pharma/nutraceutical industry experience with established buyer network(p.159)
- • Multiple prestigious international certifications (US-DMF, GMP, ISO, HACCP, KOSHER, HALAL, pharmacopeial standards)(p.159)
- • ISO 9001:2015 Quality Management System enabling global process benchmarking and continuous improvement(p.160)
- • Promoters' extensive industry expertise and strong customer relationships driving market expansion(p.159)
- • Two operational manufacturing units with owned and leased properties(p.177)
- • Established manufacturing expertise in specialty chemicals with 17 years of operations since 2008(p.235)
- • Global presence with exports to over 15 countries including USA, Germany, UK, Japan, China, Australia(p.235)
- • International quality certifications including US-DMF, GMP, ISO 9001:2015(p.235)
- • Strong revenue growth with 27.6% increase in FY2025 and 18.7% in FY2024(p.237)
- • Improved profitability with PAT margin expanding to 10.01% in FY2025 from 9.26% in FY2024(p.238)
- • Strong return on equity of 29.85% in FY2025, demonstrating efficient capital deployment(p.231)
- • Improved debt-to-equity ratio of 0.42:1 in FY2025 down from 0.79:1 in FY2024(p.224)
- • Diversified product portfolio serving pharmaceuticals, food & beverages, cosmetics and industrial applications(p.235)
Weaknesses
- • High dependence on few suppliers for raw materials creates procurement risk(p.33)
- • Concentration of domestic sales in three states limits revenue diversification(p.35)
- • Manufacturing capacity underutilized at Talod unit impacting operational efficiency(p.39)
- • Reliance on leased manufacturing premises with renewal uncertainty(p.36)
- • History of delayed statutory and regulatory filings attracting penalties(p.36)
- • Secured debt obligations with personal guarantees from promoters create default risk(p.38)
- • Related party transactions with potential conflicts of interest(p.38)
- • Overutilization of installed capacity at Vatva unit causing machinery strain(p.39)
- • Heavy dependence on promoter control post-IPO(p.48)
- • Potential inadequacy of insurance coverage(p.48)
- • Recently converted to public company with compliance challenges(p.50)
- • Limited historical experience with listed company requirements and governance(p.51)
- • High dependence on few major customers for significant revenue proportion(p.144)
- • Concentration of raw material sourcing with heavy reliance on China(p.158)
- • Moderate debt burden with debt-to-equity ratio of 0.42(p.138)
- • Declining net capital turnover ratio indicating efficiency challenges(p.138)
- • High dependence on imported raw materials (Poly Anionic Cellulose and wood pulp from China/Indonesia)(p.159)
- • Reliance on third-party logistics providers for product delivery domestically and internationally(p.159)
- • Small workforce of 136 employees concentrated across two locations(p.159)
- • Short operating history as private company before IPO conversion in 2024(p.177)
- • No established dividend policy and no dividend history since incorporation(p.203)
- • Heavy reliance on a few suppliers for raw materials, with top 1 supplier representing 22.95% of purchases in FY2025(p.241)
- • Dependence on few states for domestic purchases and single country (China) for imports(p.235)
- • Significant portion of raw material purchases are from China with 37% of imports subject to customs duty(p.222)
- • Absence of long-term supply agreements for raw materials(p.235)
- • High leverage from bank borrowings with 9.88% interest rates creating financing burden(p.233)
- • Restated financials prepared by peer review auditor rather than statutory auditor(p.235)
- • Inventory holding increased significantly leading to negative working capital impact(p.237)
- • Operating cash flow generation lower than net profit, indicating working capital strain(p.239)
Opportunities
- • Capacity expansion planned at new Indrad facility for CCS, SSG and CMC production(p.27)
- • Growing pharmaceutical industry demand and increasing export market penetration(p.40)
- • Expansion into cosmetics and other industrial segments showing growth trajectory(p.40)
- • IPO enabling capital raise for strategic expansion and debt reduction(p.3)
- • Expanding into new geographic and product markets(p.88)
- • Growing international revenue contribution(p.51)
- • Capacity expansion to meet increasing demand(p.87)
- • Benefits of listing on the stock exchange(p.86)
- • Establishment of new manufacturing facility to capture growing demand for specialty excipients(p.150)
- • Expanding global presence in high-growth pharmaceutical markets(p.150)
- • Continuous product development and innovation to meet evolving market needs(p.150)
- • Strong growth in Indian pharmaceutical market expected to reach US$ 130 billion by 2030(p.125)
- • Growing cosmetics industry in India expanding at 25% CAGR(p.135)
- • Expansion of food and beverage market with MCC applications(p.134)
- • Expansion into pharmaceutical, nutraceutical, cosmetic and industrial applications with cellulose-based excipients(p.178)
- • Leveraging One Star Export House recognition and MSME ZED Bronze Certificate for international market penetration(p.178)
- • US-FDA facility approval at Vatva Unit enabling entry into regulated North American markets(p.178)
- • Future expansion capacity through acquired 9,409 sq meter land at Indrad for manufacturing facility(p.163)
- • Increase export activity with Import Export Code from DGFT enabling broader geographic reach(p.160)
- • Export growth acceleration with 58.57% increase in FY2025 compared to FY2024(p.237)
- • Expansion into new geographies with established quality standards enabling entry into regulated markets(p.235)
- • Growing pharmaceutical and food additives markets with increasing regulatory acceptance(p.235)
- • Capacity expansion opportunities with new manufacturing unit at Talod providing 5x higher capacity(p.225)
- • Growing demand for specialty chemicals indicated by 62.23% export growth in FY2024(p.238)
- • Leverage of IPO proceeds for capacity expansion and debt reduction to improve operational efficiency(p.213)
- • Improved margins through better capacity utilization and manufacturing efficiency improvements(p.238)
Threats
- • Significant raw material cost volatility due to commodity price fluctuations and FX exposure(p.33)
- • Concentration of imports from single country (China) creates supply chain vulnerability(p.35)
- • Export revenue concentration in few countries exposes to geopolitical and demand risks(p.36)
- • Dependence on wood pulp availability for MCC production threatens raw material supply(p.43)
- • Regulatory compliance requirements and changing safety/environmental laws increase costs(p.47)
- • Heavy dependence on third-party transportation creates delivery and cost risks(p.45)
- • Significant power and water requirements vulnerable to supply disruptions and price increases(p.45)
- • Manufacturing operations exposed to machinery breakdown, natural disasters and industrial accidents(p.44)
- • Absence of Fire Safety NOC at manufacturing facilities increases operational risk(p.39)
- • Technological obsolescence risk requiring significant capital investment for upgradation(p.44)
- • Extensive regulatory compliance requirements for approvals, licenses and permits(p.44)
- • Product development execution and market acceptance risks(p.47)
- • Difficulty maintaining quality and consistency during growth(p.47)
- • Protective trade restrictions and export barriers(p.49)
- • Foreign exchange rate fluctuation exposure(p.51)
- • Regulatory changes and compliance risks(p.51)
- • Intellectual property protection challenges(p.48)
- • Natural calamities and geopolitical risks(p.53)
- • Inflation and cost pressures(p.53)
- • Regulatory compliance challenges across multiple jurisdictions for pharmaceutical products(p.131)
- • Global supply chain disruptions affecting raw material procurement(p.131)
- • Pricing pressure from government and consumers limiting profit margins(p.132)
- • Rising R&D costs and competitive pressures in specialty chemicals market(p.132)
- • Intense competition from multinational companies in pharmaceutical excipients(p.133)
- • Vulnerability to raw material price fluctuations and geopolitical disruptions(p.132)
- • Intense competition from organized and unorganized domestic and international competitors(p.159)
- • Price, quality, timely delivery and reliability as principal competitive factors increasing pressure(p.159)
- • Regulatory compliance burden under multiple central and state legislations including Drugs & Cosmetics Act, FSSA, environmental laws(p.164)
- • Environmental laws, pollution control regulations and hazardous waste management compliance requirements(p.168)
- • Risk of regulatory changes affecting drug pricing and export policies(p.164)
- • Currency fluctuation risk on imported raw materials and foreign trade transactions(p.159)
- • Dependence on few domestic markets with top 3 states representing significant portion of domestic sales(p.235)
- • High concentration in key export markets (Egypt, USA, Russia, South Korea, UK, Japan, Germany)(p.236)
- • Volatility in raw material prices, particularly for imported inputs subject to forex fluctuations(p.235)
- • Regulatory risks in pharmaceutical and food sectors where products are used(p.235)
- • Customer concentration with top 3 customers representing 13.25% of revenue in FY2025(p.241)
- • Exposure to forex risk with significant export operations earning in foreign currencies(p.222)
- • Competition from established players in specialty chemicals market(p.241)
- • Supply chain disruption risks given dependence on China for raw materials and global exports(p.235)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bhupesh Patel | Promoter | 84.66% | — |
| Anshu Patel | Promoter | 8.37% | — |
| Vini Patel | Promoter | 0.95% | — |
| Bhupesh Patel | Promoter | 84.66% | 60.83% |
| Anshu Patel | Promoter | 8.37% | 6.02% |
| Vini Patel | Promoter | 0.95% | 0.68% |
| Bhupesh Patel HUF | Promoter Group | 1.14% | 0.82% |
| Neha Patwari | Promoter Group | 0.01% | 0.01% |
| Bhupesh Patel | Promoter/Managing Director | — | — |
| Anshu Patel | Promoter/Whole-Time Director | — | — |
| Bhupesh Patel | Managing Director/Promoter | 84.66% | — |
| Anshu Patel | Whole-Time Director/Promoter | 8.37% | — |
| Vini Patel | Non-Executive Director/Promoter | 0.95% | — |
| Bhupeshbhai V Patel | Promoter | 84.66% | — |
| Anshuben B Patel | Promoter | 8.67% | — |
| Bhupeshbhai V Patel (HUF) | Promoter Group | 1.14% | — |
| Vini B Patel | Promoter Group | 0.95% | — |
Leadership
Bhupesh Patel · Managing Director
Anshu Patel · Director
Vini Patel · Director
Kalpesh Prajapati · Chief Financial Officer
Sonalkumari Yadav · Company Secretary & 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.
Patel Chem Specialities IPO FAQs
What is the lot size of Patel Chem Specialities IPO?
The minimum lot size of Patel Chem Specialities IPO is 1,600 shares. One lot costs ₹1,34,400 at the cut-off price.
When does Patel Chem Specialities IPO open and close?
Patel Chem Specialities IPO opened for subscription on 25 Jul 2025 and closed on 29 Jul 2025.
What is the listing date of Patel Chem Specialities IPO?
Patel Chem Specialities IPO listed on 01 Aug 2025.