Vital Chemtech SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Oct 2022 – 03 Nov 2022
- Listing date
- 14 Nov 2022
- Face value
- ₹10 per share
- Issue price
- ₹101 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹64.64 Cr
- Market cap at offer price
- ₹242 Cr
- Promoter holding
- 99.99% → 73.27% pre-issue → post-issue
- ISIN
- INE0L4K01016
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- B-406, Mondeal Heights, Opp.Karnavati Club, S.G.Highway, 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 | 18,18,000 | — | — |
| Market maker | 3,20,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹101
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,21,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,42,400 |
| S-HNI (max) | 8 | 9,600 | ₹9,69,600 |
| B-HNI (min) | 9 | 10,800 | ₹10,90,800 |
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 (₹) | 8.66 | — |
| P/E (×) | 11.66 | — |
| Market cap | — | ₹242 Cr |
Key performance indicators
- Return on net worth
- 50.17%
- ROCE
- 37.81%
- Debt / equity
- 2.61
- PAT margin
- 12.82%
- EBITDA margin
- 17.18%
- NAV per share
- ₹7.96
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vital Chemtech SME
Vital Chemtech Limited was originally incorporated on November 11, 2013, as Rudra Chemtech Private Limited and subsequently converted to a public limited company on November 25, 2021. The company operates a state-of-the-art manufacturing facility in Dahej, Gujarat, with integrated operations for manufacturing phosphorus base chemicals. The company manufactures Phosphorus Trichloride (PCl3), Phosphorus Oxychloride (POCl3), Phosphorus Pentachloride (PCl5), Phosphorus Pentoxide (P2O5), Poly Phosphoric Acid (PPA), and Phosphorus Pentasulfide (P2S5). Its manufacturing facility is certified with ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015, maintains zero liquid discharge (ZLD) standards, and operates using PLC and SCADA technology. The company generates revenue by supplying these chemicals to customers across multiple industries and also engages in trading of raw materials.
Company Analysis
from RHPVital Chemtech Limited manufactures phosphorus derivative chemicals for use in pharmaceutical, agrochemical, specialty chemicals, textile, dyes, pigments, and plastic additives industries.
Vital Chemtech Limited was originally incorporated on November 11, 2013, as Rudra Chemtech Private Limited and subsequently converted to a public limited company on November 25, 2021. The company operates a state-of-the-art manufacturing facility in Dahej, Gujarat, with integrated operations for manufacturing phosphorus base chemicals. The company manufactures Phosphorus Trichloride (PCl3), Phosphorus Oxychloride (POCl3), Phosphorus Pentachloride (PCl5), Phosphorus Pentoxide (P2O5), Poly Phosphoric Acid (PPA), and Phosphorus Pentasulfide (P2S5). Its manufacturing facility is certified with ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015, maintains zero liquid discharge (ZLD) standards, and operates using PLC and SCADA technology. The company generates revenue by supplying these chemicals to customers across multiple industries and also engages in trading of raw materials.
Objects of the Issue
- To Meet Working Capital Requirements ₹4,500.00 Lakhs p.24
- General Corporate Purpose ₹1,575.42 Lakhs p.24
- To Meet Working Capital Requirements ₹4,500.00 lakhs p.80
- General Corporate Purpose ₹1,575.42 lakhs p.80
- To meet Public Issue Expenses ₹388.18 lakhs p.80
- Capital expenditure for expansion and modernization of existing manufacturing facilities p.199
- General corporate purposes
Issue Structure
- Total Issue
- 6,399,600 Equity Shares aggregating to ₹6,463.60 Lakhs
- Fresh Issue
- 6,399,600 Equity Shares aggregating to ₹6,463.60 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹95/- to ₹101/-
- Lot Size
- 1,200 Equity Shares
- Face Value
- ₹10/- each
Business Model
The company manufactures and supplies phosphorus base chemicals to customers in pharmaceutical, agrochemical, specialty chemicals, textile auxiliaries, dyes, pigments, and plastic additives industries. Revenue is generated through the sale of manufactured phosphorus derivative products and trading of raw materials.
Business Segments
SWOT Analysis
- • State-of-the-art integrated manufacturing facility with advanced automation(p.21)
- • ISO certifications and ZLD (Zero Liquid Discharge) plant operations(p.21)
- • Diversified product portfolio serving multiple industries(p.21)
- • Strategic location near Middle East petrochemical feedstock sources(p.22)
- • State-of-the-art manufacturing facility with automated systems and certifications(p.102)
- • Strong financial growth with improving profitability and balance sheet(p.102)
- • Diversified product portfolio across multiple customer segments(p.102)
- • Zero Liquid Discharge (ZLD) plant ensuring environmental sustainability(p.102)
- • Half a decade of track record in phosphorus-based specialty chemicals(p.102)
- • Experienced management with 28 years in chemical manufacturing(p.118)
- • Strategic location in Dahej Industrial Estate with developed infrastructure(p.118)
- • Long-standing relationships with established end-use manufacturers(p.118)
- • Customer approval advantage creates entry barriers for competitors(p.118)
- • Strong focus on quality, environment, health and safety with ISO certifications(p.118)
- • Diversified product portfolio reduces customer concentration risk(p.118)
- • PLC/SCADA based production for consistent quality and safety(p.118)
- • ISO-certified manufacturing facility with integrated operations(p.209)
- • State-of-the-art PLC and SCADA controlled manufacturing(p.209)
- • Growing profitability and strong EBITDA margins(p.209)
- • Diversified product portfolio across multiple end-user segments(p.209)
- • Integrated manufacturing facility with backward integration capability(p.209)
- • Leased manufacturing facility and registered office without owned assets(p.29)
- • High dependence on few customers for revenue(p.39)
- • High dependence on few suppliers for raw materials(p.39)
- • Significant indebtedness and working capital intensity(p.41)
- • Promoter-dominated ownership structure post-IPO(p.40)
- • No long-term agreements with suppliers or customers(p.33)
- • Low capacity utilization historically(p.31)
- • Significant debt burden relative to equity(p.102)
- • Limited operational history as a public company with compliance burden(p.47)
- • Concentration of shareholding among limited promoters(p.74)
- • Single manufacturing facility concentration(p.121)
- • High debt-to-equity ratio of 2.31 as of April 2022(p.119)
- • Low capacity utilization across product lines(p.126)
- • Limited employee base of 50 people(p.128)
- • Newly appointed Key Management Personnel with limited experience(p.160)
- • High leverage with debt-to-equity ratio of 2.31(p.184)
- • Significant dependence on top 10 customers for majority of sales(p.216)
- • High dependence on top 10 suppliers for raw materials(p.216)
- • Recently converted from LLP to Company with limited track record as public company(p.209)
- • Material litigation pending with one customer for non-performance on supply orders(p.218)
- • Growing Indian specialty chemicals market with 12% CAGR expected(p.22)
- • Strong Indian chemical industry growth forecast(p.22)
- • Expansion of phosphorus derivatives manufacturing capabilities(p.36)
- • Capacity expansion at Dahej facility and new product development opportunities(p.36)
- • Growing Indian chemical industry with strong CAGR(p.98)
- • Expanding specialty chemicals segment with higher growth rates(p.99)
- • Government support through PLI schemes and initiatives(p.100)
- • Strategic location in PCPIR region for industrial development(p.102)
- • Supply chain opportunities from China-related disruptions(p.101)
- • Expansion of customer base in existing markets(p.121)
- • Product portfolio expansion(p.121)
- • Export market development(p.121)
- • Cost efficiency through operational optimization(p.118)
- • Development of eco-friendly production processes(p.118)
- • Phosphorus Pentasulfide applications in specialty chemicals and lithium batteries(p.117)
- • Expansion of manufacturing capabilities for new products like Phosphorus Pentasulfide(p.209)
- • Growing demand across multiple industry segments including lifesciences and crop care(p.209)
- • Export market development with presence in Middle East(p.192)
- • Increasing scale of operations with annual turnover exceeding ₹100 crore(p.209)
- • Regulatory compliance risks for hazardous chemical manufacturing(p.34)
- • Volatility in raw material prices and supply disruptions(p.32)
- • Foreign exchange fluctuation risks(p.38)
- • Dependency on transportation and logistics infrastructure(p.34)
- • Global economic downturn and Indian economy dependency(p.44)
- • Risk of product obsolescence due to technological changes(p.39)
- • Natural disasters and operational disruptions(p.31)
- • Market price volatility and limited trading liquidity(p.45)
- • COVID-19 pandemic disruption risk to manufacturing and supply chains(p.48)
- • Volatile global economic conditions and inflation pressures(p.93)
- • Geopolitical tensions and energy market disruptions(p.93)
- • Uncertain market liquidity post-listing(p.46)
- • Risk of shareholding dilution from future equity issuances(p.47)
- • High capital intensity of chemical industry(p.121)
- • Intense competition from regional, national and international competitors(p.127)
- • Government policy changes affecting the industry(p.121)
- • Low entry barriers enabling new competitor emergence(p.127)
- • Price competition as primary customer decision factor(p.127)
- • Raw material sourcing dependence on limited suppliers(p.127)
- • COVID-19 pandemic impact on operations and supply chains(p.128)
- • Exposure to raw material price volatility, particularly for phosphorus and chlorine(p.215)
- • Regulatory risks including environmental compliance requirements(p.225)
- • Competition from existing players in phosphorus chemicals manufacturing(p.216)
- • Global economic uncertainties and COVID-19 pandemic impact(p.210)
- • Dependence on credit facilities and cash credit arrangements with banks(p.199)
- • International trade and forex volatility exposure(p.179)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Vipul Jatashanker Bhatt | Promoter | 74.99% | 54.96% |
| Mrs. Sangeeta Vipul Bhatt | Promoter | 25.00% | 18.32% |
| Vipul Jatashanker Bhatt | Promoter | 74.99% | 54.96% |
| Sangeeta Vipul Bhatt | Promoter | 25.00% | 18.32% |
| Mr. Vipul Jatashanker Bhatt | Promoter/Promoter Group | — | — |
| Mrs. Sangeeta Vipul Bhatt | Promoter/Promoter Group | — | — |
| Vipul J. Bhatt | Promoter | 75.00% | — |
| Sangeeta Vipul Bhatt | Promoter | 25.00% | — |
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.