The Ushanti Colour Chem date has been confirmed from July 23, 2018 and ended on July 25, 2018.
Ushanti Colour Chem Developers IPO is a fixed price issue of Rs 11.56 crores. The price is ₹60 per share. The minimum lot size for an application is 2000 Shares. The minimum amount of investment required by retail investors is ₹120,000.
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Bidding Dates
July 23-25
Price Range
₹60 per share
Face Value
₹10 per share
GMP
₹68.00
Ushanti Colour Chem IPO GMP
The Ushanti Colour Chem IPO GMP is ₹68.00.
IPO Overview
Ushanti Colour Chem’s initial public offering (IPO) has a set price of Rs 11.56 crores. Bidding for the Ushanti Colour Chem IPO began on July 23, 2018 and finished on July 25, 2018. On Monday, July 30, 2018, the allotment for Ushanti Colour Chem IPO was completed. On August 2, 2018, the shares were listed on the NSE SME. The IPO price for Ushanti Colour Chem is ₹60 per share. A lot size of 2000 shares is required for an application. Retail investors must make a minimum investment of ₹120,000 to participate.
Ushanti sells its goods through dealers. The created dyes are sold in accordance with orders received by parties, who may be manufacturers or traders.
New Project Features
Expansion Phase I & II : Turquoise Blue Dyestu, Pigments & Intermediates
- Highly Profitable.
- For Backward Integration Project, no pressure to sell & not much working capital required.
- China has almost stopped production of Intermediates and Dyestuffs
- With production of Intermediates with Dyestus/Pigments, Ushanti will be extremely competitive in “Turquoises”
Phase III : (other products)
- Phase I & II projects’ production will stabilize by 2020-21. Phase III of the project, for other products, will be started thereafter.
- Funding for Phase III will be through an FPO of Rs 100 crores approx. after migration to the main board.
Other Features
- Vertical expansion: All plants will have Dyestu /Pigment units with their intermediates to ensure cost competitiveness.
- Scale: Huge economies of scale with plant size 5-10 times the size of its Vatwa Plants
Strengths of the company-
- Over 50 years of experience, manufacturing since 1979
- Consistent profits with PAT of Rs. 2.38 Cr in 2017-18
- Operates in a niche market for Turquoise Blue. There are very few plants worldwide producing Turquoise Blue. Even fewer plants with their own intermediates. The company’s expansion plan is focussed on Turquoise Blue Dyestu/Pigments with Backward Integration Plants.
- Good cost reduction plans on Energy and Pollution treatment. Only CNG is allowed in Vatwa while all fuels allowed in Saykha would result in a 50% reduction in energy costs. The company plans to leverage its huge land available resources and enable conversion of waste to reusable products thus reducing costs on pollution treatment.
- Part of Sunrise Industry. The shifting of production of dyestuff/pigment from China to India has had a huge bearing on turnover and profits for the industry.
Ushanti Colour Chem IPO Details
| IPO Date | July 23, 2018 to July 25, 2018 |
| Listing Date | August 2, 2018 |
| Face Value | ₹10 per share |
| Price | ₹60 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | 1,926,000 shares (aggregating up to ₹11.56 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | NSE SME |
| Market Maker portion | 98,000 shares |
Ushanti Colour Chem Company Financials
| Particulars | For the year/period ended (in Rs. Lakhs) | |||||
|---|---|---|---|---|---|---|
| 31-Dec-17 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | 31-Mar-13 | |
| Total Assets | 2,702.27 | 2,273.94 | 2,238.70 | 2,022.31 | 1,889.78 | 1315.76 |
| Total Revenue | 2742.60 | 2,962.10 | 2,511.31 | 2,970.96 | 3,541.98 | 2,414.66 |
| Profit After Tax | 245.00 | 137.78 | 37.97 | 28.36 | 222.00 | 51.01 |
Ushanti Colour Chem IPO Timeline
| IPO Open Date | Monday, July 23, 2018 |
| IPO Close Date | Wednesday, July 25, 2018 |
| Basis of Allotment | Monday, July 30, 2018 |
| Initiation of Refunds | Tuesday, July 31, 2018 |
| Credit of Shares to Demat | Wednesday, August 1, 2018 |
| Listing Date | Thursday, August 2, 2018 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 25, 2018 |
Company Profile
Ushanti Colour Chem Limited, situated in Gujarat, was founded in 1993 and is a firm that manufactures and trades dyestuffs. Reactive and Direct Dyestuffs, often known as Synthetic Organic Dyes, are produced by the company. It also produces Copper Phthalocyanine, Blue Crude, which is utilised in the production of dyestuffs. Pigment and dyestuffs are used as raw materials in a variety of industries, including wool, ink, wood, leather, nylon, paper, textile, garment, cotton, plastic, and paint. The company has three manufacturing facilities situated across 2,739 square
metres at Vatva GIDC in Gujarat. It also has its own ice-making equipment. It recovers ammonium carbonate, which is reused in the factory and supplied to the soda ash industry, decreasing waste and giving additional cash to the company. The company’s monthly production capacity has expanded from 5 MT in 1990 to 300 MT today. The expanded capacity will increase production to 1350MT. The company’s enterprise worth is roughly Rs 45-50 crore, including land of 3000 square metres in Vatwa and 75000 square metres in Saykha. Ushanti generates around 41% of its revenue from the domestic market, with the remaining 59% coming from its export operations.
Registrar Info
| Name | Bigshare Services Pvt Ltd |
| Phone number | +91-22-6263 8200 |
| Email ID | ipo@bigshareonline.com |
| Website | ipo.bigshareonline.com |
Contact Details
| Name | Ushanti Colour Chem Limited |
| Phone number | 079-25833315 |
| Email ID | admin@ushanti.com |
| Website | ushanti.com |
IPO Strenghts
- Experienced promoters and a competent management team.
- Well-established relationships with a loyal customer base.
- Access to markets worldwide, enabling global reach.
IPO Weakness
- Heavy reliance on customers based in the United States.
- Need to adhere to multiple laws and regulations in these countries to ensure compliance.
- Competition from other players in the market.
