Gujarat Polysol Chemicals has filed preliminary papers with the Securities and Exchange Board of India (SEBI) in order to raise Rs. 414 crore through an Initial Public Offering (IPO). The offer consists of a fresh issue of up to Rs.87 crore and an offer by the selling shareholders to sell equity shares worth up to Rs.327 crore. This issue will not have a pre-IPO placement. The IPO’s sole book-running lead manager is INGA Ventures.
The company is a leading supplier of dispersion agents in the Infra-tech, dye and pigments, textile, and leather sectors, as well as a powder surfactant supplier in India. It is also one of the top producers of polycarboxylate ether (PCE) liquid in India, as well as one of the few producers of PCE powder internationally and the only producer of PCE powder in India. Sulphonated naphthalene formaldehyde, sulphonated melamine formaldehyde, sulphonated acetone formaldehyde, cellulose nanofibers, alkyl aryl sulphonate, and acrylic
syntans are among the 130 goods manufactured by the company (in liquid and powder form). The company has three manufacturing facilities, two in Gujarat (Vapi and Sarigam) and one in the Union Territories of Dadra and Nagar Haveli and Daman and Diu. The wide range of chemicals and intermediates that it manufactures can be classified, based on the end use industry (Application Industries and each an application industry), as follows:
- Infra-tech (construction) chemicals
- Agro-chemicals (pesticide formulations)
- Dyes, pigments and textile chemicals
- Leather chemicals
Gujarat Polysol Chemicals Financial Status
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operation | 3,796.06 | 4,404.56 | 4,387.58 |
| EBITDA | 642.99 | 386.81 | 318.61 |
| EBITDA Margin (%) | 16.94 | 8.78 | 7.26 |
| Profit After Tax | 398.39 | 201.85 | 128.00 |
| EPS | NA | NA | NA |
| ROE | 28.08 | 21.57 | 17.46 |
Objective of Gujarat Polysol Chemicals
The company proposes to utilise the net proceeds towards
- funding repayment or pre-payment, in full or in part, of all or certain borrowings availed by the company
- for general corporate purposes.
Gujarat Polysol Chemicals Peer Comparison
| Name of Company | Revenue from Operation | EPS | P/E |
|---|---|---|---|
| Himadri Speciality Chemicals Ltd. | 16,794.58 | 1.13 | 36.86 |
| BASF India Ltd. | 95,583.40 | 127.7 | 16.21 |
Gujarat Polysol Chemicals IPO Key Points
Strengths
- Strong and diversified customer base and has established long term relationships with various Swiss, US and German multinational and domestic companies
- Greatly rely on constant R&D for developing or innovating new formulations or products
- Extensive manufacturing capabilities of products with stringent quality norms and procedures
Risks
- The loss of one or more of our significant customers or a significant reduction in production and sales of, or demand for our production from our significant customers
- The availability of raw materials on commercially acceptable terms
- Adverse change(s) in government policies, in particular, policies pertaining to import of raw materials that are used in our business or products manufactured by us
- Any downturn in one or more of industries / sectors to which we cater;
- Absence of any firm commitment long-term agreements with our customers
Gujarat Polysol Chemicals IPO FAQs
Q1. What is the lot size and investment required for the Gujarat Polysol Chemicals Ltd IPO?
Ans. Gujarat Polysol Chemicals IPO details are yet to announced
Q2. What is the price band of the Gujarat Polysol Chemical IPO?
Ans. Gujarat Polysol Chemicals IPO details are yet to announced
Q3. When does the Gujarat Polysol Chemicals IPO issue open and close?
Ans. Gujarat Polysol Chemicals IPO details are yet to announced
Q4. What is the size of Gujarat Polysol Chemicals IPO issue?
Ans. The fresh issue comprises fresh issue of up to Rs.87 crore and an offer for sale of equity shares of up to Rs.327 crore by the selling shareholders.
Q5. Who are the promoters/key personnels of Gujarat Polysol Chemicals Ltd?
Ans. Gujarat Polysol Chemicals Ltd is promoted by Shaileshkumar Balvantrai Desai and Umang Shailesh Desai.
Q6. When is the allotment date of Gujarat Polysol Chemicals Ltd IPO?
Ans. Gujarat Polysol Chemicals IPO details are yet to announced
Q7. When is the Gujarat Polysol Chemicals IPO listing date?
Ans. Gujarat Polysol Chemicals IPO details are yet to announced
Q8. Who are the book runners for Gujarat Polysol Chemicals Ltd IPO?
Ans. INGA Ventures is the sole book running lead manager for the Gujarat Polysol Chemical IPO.
Q9. What is the objective of Gujarat Polysol Chemical IPO?
Ans. he proceeds will be used:
- funding repayment or pre-payment, in full or in part, of all or certain borrowings availed by the company
- for general corporate purposes
