Rite Zone Chemcon India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Oct 2022 – 02 Nov 2022
- Listing date
- 11 Nov 2022
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹8.96 Cr
- Market cap at offer price
- ₹31.73 Cr
- Promoter holding
- 58.39% → 41.89% pre-issue → post-issue
- ISIN
- INE0MRA01019
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- Row House 11, Beverly Park, Row House CHS Ltd, Mira Road, 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 | 60,800 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹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
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.49 | — |
| P/E (×) | 50.34 | — |
| Market cap | — | ₹31.73 Cr |
Key performance indicators
- Return on net worth
- 5.22%
- ROCE
- 10.70%
- Debt / equity
- 0.21
- PAT margin
- 5.31%
- EBITDA margin
- 4.78%
- NAV per share
- ₹16.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rite Zone Chemcon India SME
Originally incorporated as 'Rite Zone Chemicals India Private Limited' on March 10, 2015 in Maharashtra, the company was renamed 'Rite Zone Chemcon India Private Limited' in April 2022 and converted into a public limited company as 'Rite Zone Chemcon India Limited' in June 2022, with its registered office at Row House 11, Beverly Park, Mira Road, Thane-401107. It is an ISO 9001:2015 certified company dealing in construction chemicals and concrete products, offering complete construction solutions by supplying chemical products related to civil construction, infrastructure, building and structure (pre- and post-construction), including concrete admixtures, waterproofing systems, concrete lubricators/pumping aids, engineering grouts, industrial flooring, concrete repairs, curing compounds & mould release agents, surface treatments, and tiling & block products, along with concrete products such as slump, flowable, self-compacting (SCC), lightweight, stamped, colour, PQC, early-strength, reinforced, shotcrete, precast, pile, air-entrained, prestressed and high-strength concrete. In March 2022 it took over the running business of M/s Maruti Infrachem Solutions [Bhavesh Babulal Bhandari HUF], which majorly dealt in concrete products, at a total consideration of ₹197.47 Lakhs by issuing 11,61,605 equity shares to promoter Mr. Bhavesh Bhandari. The company makes money by selling these construction chemicals and concrete products, operating an asset-light model in which 100% of manufacturing is outsourced to third-party suppliers/job-workers who produce to its formulations and quality standards, with sales currently on a B2B basis (including supplies into government projects through sub-contractors) and heavily concentrated in Maharashtra (98.26% of revenue for the period ended September 30, 2022). Restated revenue from operations was ₹5,74,77,801 in FY2020, ₹3,79,74,489 in FY2021, ₹4,93,33,473 in FY2022 and ₹10,34,08,367 in the six months ended September 30, 2022.
Company Analysis
from RHPRite Zone Chemcon India Limited is an ISO 9001:2015-certified Indian company that deals in a wide range of construction chemicals and concrete products used across civil construction, infrastructure, buildings and structures.
Originally incorporated as 'Rite Zone Chemicals India Private Limited' on March 10, 2015 in Maharashtra, the company was renamed 'Rite Zone Chemcon India Private Limited' in April 2022 and converted into a public limited company as 'Rite Zone Chemcon India Limited' in June 2022, with its registered office at Row House 11, Beverly Park, Mira Road, Thane-401107. It is an ISO 9001:2015 certified company dealing in construction chemicals and concrete products, offering complete construction solutions by supplying chemical products related to civil construction, infrastructure, building and structure (pre- and post-construction), including concrete admixtures, waterproofing systems, concrete lubricators/pumping aids, engineering grouts, industrial flooring, concrete repairs, curing compounds & mould release agents, surface treatments, and tiling & block products, along with concrete products such as slump, flowable, self-compacting (SCC), lightweight, stamped, colour, PQC, early-strength, reinforced, shotcrete, precast, pile, air-entrained, prestressed and high-strength concrete. In March 2022 it took over the running business of M/s Maruti Infrachem Solutions [Bhavesh Babulal Bhandari HUF], which majorly dealt in concrete products, at a total consideration of ₹197.47 Lakhs by issuing 11,61,605 equity shares to promoter Mr. Bhavesh Bhandari. The company makes money by selling these construction chemicals and concrete products, operating an asset-light model in which 100% of manufacturing is outsourced to third-party suppliers/job-workers who produce to its formulations and quality standards, with sales currently on a B2B basis (including supplies into government projects through sub-contractors) and heavily concentrated in Maharashtra (98.26% of revenue for the period ended September 30, 2022). Restated revenue from operations was ₹5,74,77,801 in FY2020, ₹3,79,74,489 in FY2021, ₹4,93,33,473 in FY2022 and ₹10,34,08,367 in the six months ended September 30, 2022.
Objects of the Issue
- Part-finance the working capital requirements ₹ 675.00 Lakhs p.76
- General corporate purposes ₹ 50.00 Lakhs p.78
- Meet issue expenses ₹ 171.40 Lakhs p.78
Issue Structure
- Total Issue
- ₹ 896.40 Lakhs (11,95,200 Equity Shares)
- Fresh Issue
- 11,95,200 Equity Shares aggregating up to ₹ 896.40 Lakhs (entire issue is a fresh issue)
- Offer for Sale
- Nil
- Price Band
- Fixed Price Issue – Issue Price ₹ 75/- per Equity Share (including share premium of ₹ 65/- per Equity Share)
- Lot Size
- Market lot and trading lot of 1600 Equity Shares, in multiples of 1600 thereafter; minimum allotment of 1600 Equity Shares
- Face Value
- ₹ 10/- each
Business Model
Earns revenue from sales of construction chemicals (concrete admixtures, waterproofing systems, concrete lubricators/pumping aids, engineering grouts, industrial flooring, concrete repairs, curing compounds & mould release agents, surface treatment, tiling & block products) and a range of concrete products (slump, flowable, SCC, lightweight, stamp, colour, PQC, early-strength, reinforced, shotcrete, precast, pile, air-entrained, prestressed and high-strength concrete). It runs an asset-light model with low fixed overheads: 100% of manufacturing is outsourced to third-party suppliers/job-workers who produce to the company's formulas and predetermined cost and quality standards, raw materials are largely stored at supplier facilities, and finished goods are delivered just-in-time to customers via third-party transporters. Sales are currently business-to-business, including a stable revenue stream from government company projects routed through sub-contractors, and are concentrated in Maharashtra.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bhavesh Babulal Bhandari | Promoter; Chairman & Managing Director | 56.33% | 40.42% |
| Arti Bhavesh Bhandari | Promoter; Executive Director & CFO | 2.06% | 1.47% |
| Babulal Ramubhai Bhandari | Promoter Group | Negligible | Negligible |
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.