Patel Chem Specialities IPO: GMP, Overview, And Price

Patel Chem Specialities IPO- Complete Overview

Patel Chem Specialities IPO under the SME IPO category is a book-build issue of Rs. 58.80 Cr by Patel Chem Specialities Ltd. The company was formed in 2008 and is engaged in the business of producing and exporting pharmaceutical excipients and specialty chemicals.

As a chemist, PCSL C. Patel & Co. (PCSL) produces various essential therapeutic excipients and adjuvants used in pharmaceuticals, spanning their application in food, cosmetics, and industrial applications as binders, disintegrants, thickeners, stabilisers, and gelling agents.

The company’s manufacturing facilities in Vatva, Ahmedabad, and Talod, Himmatnagar, using modern technology in questioning and examining quality control practices, successfully bulk produced chemicals, which received international certifications like US-DMF and GMP.

As for the company’s manufacturing branches, they were reported to cover an area of roughly 7,000 square yards and had an annual production capacity exceeding 7,200 MT of pharmaceutical excipients. The branches included storage, production, R&D, quality control, packaging, and warehousing divisions.

Currently, the company operates in the countries of East Asia, Europe, the Middle East region, North America, and Southeast Asia, exporting high-priority top-quality products that meet international standards.

Product Portfolio:

Rheollose® (Sodium Carboxymethyl Cellulose) is used as a thickening and stabilising agent in foods, medicines, cosmetics, industrial products, and other multiple applications.

Disolwell® (Croscarmellose Sodium) is a super disintegrant administered in oral pharmaceutical formulations for enhancing the process of tablet disintegration.

Swellcal® (Calcium Carboxymethyl Cellulose) is regarded as a super disintegrant for pharmaceutical usage.

AmyloTab™ (Pregelatinized Starch) is incorporated into tablet dosage forms to facilitate disintegration and dissolution.

Patel Chem Specialities IPO Overview

The Patel Chem Specialities IPO date is on 25 July 2025, and its initial public offering will end on 29 July 2025. 

The Rs. 58.80 Crore new SME IPO comprises a fresh issue of 70 lac shares.

The Patel Chem Specialities IPO listing date (expected) might be on Friday, Aug 01, 2025, and listing at the BSE and SME.

Click to open demat account and apply for the IPO.

 

Company Financial

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	65.31	46.97	37.08
Total Revenue	105.55	82.72	69.75
PAT	10.57	7.66	2.89
Net Worth	35.40	19.52	11.87
Reserves & Surplus	17.53	18.52	10.87
Borrowings	14.85	15.46	11.79

 

Cash Flows

(Amount in lac)

Net Cash Flow in Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	189.89	608.02	196.73
Net Cash Flow Investing Activities	(719.68)	(594.45)	(327.37)
Net Cash Flow Financing Activities	542.12	32.16	80.95

 

Revenue Bifurcation

Product-wise Revenue Bifurcation

Geography-wise Revenue Bifurcation

Industry-wise Revenue Bifurcation

(Source: RHP)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the working capital needs.

• General corporate purposes.

Click to check the IPO application status.

Listed Peers of Patel Chem Specialities Ltd. 

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Accent Microcell Limited	10	15.71	16.26
Sigachi Industries Limited	1	2.06	20.51

 

Evaluation

The Patel Chem Specialities IPO price is Rs. 82 to Rs. 84 for each Share.

Evaluation of P/E Ratio

Considering the FY ended on 31 Mar 2025 with an EPS of Rs. 6.10 from the last year, the resulting P/E ratio is 13.77x.

Considering the weighted EPS of Rs. 4.83 for the last three years, the P/E ratio is 17.39x.

Explore the Savy Infra IPO.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 18.39x.

Particulars	P/E Ratio (x)
Highest	20.51
Lowest	16.26
Average	18.39

 

In simple words, the P/E ratio of this IPO is 13.77x, compared with the industry’s average P/E of 18.39x, indicating an undervaluation (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Patel Chem has operated within the specialty chemicals field for more than a decade. The company features a stable customer base and consistent relationships with suppliers.

• Patel Chem serves customers from the textiles, paints, rubber, and construction industries. This form of diversification minimises exposure from any specific industry. 

• With in-house research and development and quality control, the company can maintain necessary product quality and industry innovation. 
  
  

 

IPO’s Weaknesses 

• The company generates a considerable portion of revenues from a limited number of customers which increases exposure to high client concentration risk.

• The company is dependant on the licences and approvals from different government agencies, making the business susceptible to stagnation and growth due to regulatory changes.

• Patel Chem’s expansion into new international markets exposes the company’s profits to foreign exchange rate volatility. While uncontrolled Forex risks can pose serious threats to financial stability, exports do serve as a primary catalyst for growth.
  
  

Patel Chem Specialities IPO GMP

Patel Chem Specialities IPO GMP has not started yet as of 19 Jul 2025 at the time of writing this information.

IPO Timetable (Tentative)

The Patel Chem IPO date of opening is from Jul 25 to Jul 29, 2025, allotment on Jul 30, refund initiation on Jul 31, and listing on Aug 01, 2025.

Events	Date
IPO Opening Date	Jul 25, 2025
IPO Closing Date	Jul 29, 2025
IPO Allotment Date	Jul 30, 2025
Refund Initiation	Jul 31, 2025
IPO Listing Date	Aug 01, 2025

 

Patel Chem Specialities IPO Details 

The IPO with a Face Value of Rs. 10 per share offers a total issue size of 70,00,000 Shares (Rs. 58.80 Cr) with a market maker portion of 3,53,600 Shares (Rs. 3 Cr).

IPO Opening & Closing Date	25 Jul, 2025 to 29 Jul, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 82 to Rs. 84 per Share.
Lot Size	1600 Shares
Issue Size	70,00,000 Shares (Rs. 58.80 Cr)
Offer for Sale	-
Fresh Issue	70,00,000 Shares (Rs. 58.80 Cr)
Listing at	BSE, SME
Issue Type	Book Build Issue
Registrar	MUFG Intime India Private Limited (Link Intime)

 

IPO Lot Details 

Retail investors can invest in a minimum and maximum of 2 Lots (3200 Shares) for Rs. 2,68,800 and in multiples thereof, while for HNI investors, the minimum Lot is 3 (4800 Shares) for Rs. 4,03,200.

Minimum Lot Investment (Retail)	2 Lots
Maximum Lot Investment (Retail)	2 Lots
HNI (Min)	3 Lots

 

IPO Reservation (% of Net Issue)

Institutional’s Portion	47.38%
Retail’s Portion	33.30%
Non-Institutional Portion	14.26%

 

Promoters And Management of Patel Chem Specialities Ltd.

• Bhupesh Patel

• Anshu Patel

• Vini Patel.

Pre-Issue Promoter Shareholding	95.13%
Post-Issue Promoter Shareholding	69.78%

 

IPO Lead Managers

• Cumulative Capital Private Limited.
  
  

Dividend Policy

The company has not paid a dividend since its incorporation.

Conclusion

Dedicated to specialty chemicals and pharmaceutical excipients, Patel Chem Ltd. has a decade-long history tempered by robust financial growth and marked by a strong presence in exports. While there is client concentration and raw material risk, the Patel Chem Specialities IPO is offering strong fundamentals and diversified product utility. At a P/E of 13.77x compared to the industry average of 18.39x, it seems to be undervalued.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.