Lamosaic India Limited...
14 Nov 2024
Deepak Chemtex IPO: Painting a Colorful Future in the Market
Introduction:
Deepak Chemtex Limited, a significant player in the colorants industry, recently marked a momentous occasion with the conclusion of its Initial Public Offering (IPO). With a total issue size of Rs 23.04 crores and an exclusive fresh issue of 28.8 lakh shares, the IPO garnered substantial attention from investors. Let's dive into the key details and performance indicators that define Deepak Chemtex's recent market debut.
Key Dates:
| Bidding Period | November 29 to December 1, 2023 |
|---|---|
| Allotment Date | December 6, 2023 |
| Listing Date | December 6, 2023 |
IPO Features:
| Price Band | Lot Size | Minimum Investment |
|---|---|---|
| ₹76 to ₹80 per share | 1600 Shares | ₹128,000 for retail investors |
Financial Overview:
| Total Issue Size | Fresh Issue |
|---|---|
| 2,880,000 shares, aggregating up to ₹23.04 Cr | 2,880,000 shares |
Shareholding Structure:
| Pre-Issue Shares | Post-Issue Shares |
|---|---|
| 7,984,000 | 10,864,000 |
Market Maker Segment:
| Hem Finlease | 147,200 shares |
|---|
IPO Management:
| Lead Manager | Registrar | Market Maker |
|---|---|---|
| Hem Securities Limited | Bigshare Services Pvt Ltd | Hem Finlease |
Subscription Highlights:
The Deepak Chemtex IPO witnessed overwhelming subscription, with an overall subscription of 403.03 times. Notable enthusiasm was observed from Non-Institutional Investors (NII) at 642.25 times, while Retail investors subscribed 475.36 times, and Qualified Institutional Buyers (QIBs) at 96.80 times.
IPO Journey Timeline:
| IPO Open Date | IPO Close Date | Basis of Allotment | Refunds Initiation | Shares Credited to Demat | Listing Date |
|---|---|---|---|---|---|
| November 29, 2023 | December 1, 2023 | December 6, 2023 | December 7, 2023 | December 8, 2023 | December 6, 2023 |
Lot Size:
Investors had the opportunity to bid for a minimum of 1600 shares, with the following investment parameters for retail investors and High Net Worth Individuals (HNIs):
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹128,000 |
| Retail (Max) | 1 | 1600 | ₹128,000 |
| HNI (Min) | 2 | ₹128,000 | ₹256,000 |
Deepak Chemtex IPO Reservation:
The IPO featured a reservation of 2,880,000 shares, allocating portions to Anchor Investors, Market Maker, QIBs, NIIs, and retail investors.
About Deepak Chemtex Limited:
Established in 1997, Deepak Chemtex Limited specializes in the production of colorants for diverse industries such as food, pharmaceuticals, cosmetics, detergents, agriculture, and more.
Deepak Chemtex manufactures Food, Drug, and Cosmetic (FD&C) colorants used in various products, including confectionery, baked goods, beverages, pharmaceuticals, and cosmetics. The company's product portfolio also includes salt-free dyes for the inkjet industry, pond dyes, and other dyes used in car washes, detergents, fuels, oils, lubricants, seed treatment, pesticides, and more.
Operating from its manufacturing facility in Ratnagiri, Maharashtra, Deepak Chemtex exports its products globally, serving markets in China, France, Kenya, Mexico, Europe, Japan, Australia, the United Kingdom, the United States of America, and others.
Financial Performance:
As of September 30, 2023, Deepak Chemtex displayed financial resilience, with total assets standing at ₹2,820.64 Lakhs. Despite a -12.12% dip in revenue, the company showcased a notable 49.14% increase in profit after tax (PAT) between the financial years ending March 31, 2023, and March 31, 2022.
| Metric | Values |
|---|---|
| Assets | ₹2,820.64 Lakhs |
| Revenue | ₹2,212.95 Lakhs |
| Profit After Tax | ₹311.18 Lakhs |
| Net Worth | ₹1,879.90 Lakhs |
| Reserves and Surplus | ₹1,081.50 Lakhs |
| Total Borrowing | ₹120.78 Lakhs |
Key Performance Indicators:
- - Market Capitalization: ₹86.91 Crores
- - Return on Equity (ROE): 50.27%
- - Return on Capital Employed (ROCE): 49.65%
- - Debt/Equity: 0.09
- - Return on Net Worth (RoNW): 40.17%
Objects of the Issue:
The net proceeds from the IPO will be allocated for capital expenditure towards the installation of plant & machinery, investment in its subsidiary DCPL Speciality Chemicals Private Limited, working capital requirements, and general corporate purposes.
Conclusion:
Despite displaying inconsistency in top-line figures for reported periods, Deepak Chemtex's bottom line exhibited an upward trend from FY23 onwards. Industry experts have raised concerns about the sustainability of this trend. Investors, especially those with a medium-term outlook, may find potential in the company's growth trajectory. As Deepak Chemtex embarks on its public market journey, it adds a splash of vibrancy to the colorants industry, promising a colorful future ahead.
Read More IPO related blogs - AMIC Forging IPO
_Limited_IPO_right.jpg)
_Limited_IPO_right.jpg)
_Mobility_&_Hospitality_Limited_IPO_right.jpg)
