Ushanti Colour Chem IPO GMP, Review, Price, Allotment

The Ushanti Colour Chem date has been confirmed from July 23, 2018 and ended on July 25, 2018. Read the post to learn about Ushanti Colour Chem IPO GMP.

The Ushanti Colour Chem Developers IPO is a fixed-price issuance of Rs 11.56 crore. The price per share is ₹60. The minimum lot size for an application is 2000 Shares. Today’s price for Ushanti Colour Chem IPO GMP is ₹68.00. Retail investors are needed to deposit at least ₹120,000.

Start your investing journey today. Find the latest information on Upcoming IPOs.

Key Details of Ushanti Colour Chem IPO:

Ushanti Colour Chem IPO GMP

The Ushanti Colour Chem IPO GMP Today is ₹68.00.

IPO Overview​

Ushanti Colour Chem’s initial public offering (IPO) price has been set at Rs 11.56 crores. Bidding for the Ushanti Colour Chem IPO commenced on July 23, 2018, and ended on July 25, 2018. On Monday, July 30, 2018, the allotment for Ushanti Colour Chem IPO was complete. On August 2, 2018, the stock was listed on the NSE SME. Ushanti Colour Chem’s IPO price is ₹60 per share. An application requires a lot size of 2000 shares. Retail investors must invest a minimum 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 nearly discontinued manufacture of intermediates and dyestuffs.
• Ushanti will be particularly competitive in “Turquoises” after producing intermediates using Dyestus/Pigments.

Phase III : (other products)

• Phase I & II projects’ production will stabilize by 2020-21. Phase III of the project, covering other products, will begin after that.
• 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-

• Manufacturing since 1979; over 50 years of experience.
• Consistent profits with PAT of Rs. 2.38 Cr in 2017-18
• Operates in a niche market for Turquoise Blue. There are extremely 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 wants to harness its enormous land accessible resources and enable the conversion of trash to reusable products, therefore cutting expenses for pollution remediation.
• Part of Sunrise Industry. The change in dyestuff/pigment production from China to India has had a significant impact on the industry’s turnover and earnings.

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​

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.

IPO Strengths

• 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.

Ushanti Colour Chem IPO FAQs