Deepak Chemtex IPO   - Complete Overview

Established in 1997, Deepak Chemtex Limited is a company that makes colors for various purposes like food, medicine, cosmetics, cleaning products, agriculture, and more.

Deepak Chemtex's manufacturing facility is in Ratnagiri District, Maharashtra, with a yearly production capacity of over 1200 metric tonnes. They use specialised equipment and are regularly inspected by clients from the USA and EU. The facility has ISO 9001:2015 accreditation and holds HALAL and KOSHER certificates, ensuring compliance with Islamic and Jewish dietary laws.

The company offers flexible packing options such as IBC Tank Packing, HDPE Drum Packing, Cardboard Drum Packing, Carton Packaging, and Container Stuffing. The products are packed in a hygienic manner to ensure their safety during transportation.

 

What does the company do?

Deepak Chemtex sells its products to different countries like the United States, China, France, Kenya, Mexico, Europe, Japan, Australia, and the United Kingdom. 

Over the years, the company has grown and now offers around 100 products, up from about 50 in 2021. They make colors for food, medicine, and cosmetics, used in things like sweets, baked goods, drinks, and personal care items. They also make dyes without salt for printers, pond and pool dyes, and other colors for things like car wash products, cleaners, detergents, fuels, oils, and more.

 

 

Deepak Chemtex Limited IPO Overview

Deepak Chemtex IPO’s date is slated to be open for subscription from November 29, 2023, to December 1, 2023. This BSE SME IPO follows a Book Built Issue IPO.

The price of Deepak Chemtex IPO is fixed at ₹76 to ₹80 per share. The upcoming BSE SME IPO will be listed on November 11, 2023.

The total issue size of this IPO amounts to ₹23.04 CR. Within this total issue, 35% is issued to retail investors.

Deepak Chemtex IPO Timetable (Tentative)

Events	Date
IPO Opening Date	29 November 2023
IPO Closing Date	1 December 2023
IPO Allotment Date	6 December 2023
Refund initiation	7 December 2023
IPO Listing Date	11 December 2023

 

Deepak Chemtex IPO Details 

IPO Opening & Closing Date	29 November to 1 December 2023
Face value	₹10 per share
Issue Price	₹76 to ₹80 per share per share
Lot Size	1600 Shares
Price of 1 lot	₹128,000
Total Issue Size	2,880,000 shares (aggregating up to ₹23.04 Cr)
Fresh issue	2,880,000 shares (aggregating up to ₹23.04 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

Deepak Chemtex IPO  Lot Details: 

Applications	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	1600
Maximum Lot Investment (Retail)	1 lot	1600
Minimum Lot Investment (HNI)	2 lot	3,200

 

Deepak Chemtex IPO  Reservation

Qib Shared Offered	Not more than 50.00%
Retail Shares Offered	Not less than 35.00%
HNI Shares Offered	Not less than 15.00%

 

Company Financial

(Amount in Lakhs)

Period	FY 23	FY 22
Total Assets	2,382.32	1,715.17
Total Revenue	4,783.72	5,443.68
PAT	631.02	423.10
Net worth	1,569.73	938.43
Reserve & Surplus	1,519.83	888.53
Total Borrowings	136.80	199.49

 

REVENUE DISTRIBUTION GEOGRAPHIC-WISE          

( in % age)

Particulars	F.Y. 23	F.Y. 22	F.Y. 21
Domestic Sales	42.48%	66.54%	76.07%
Export Sales	57.52%	33.46%	23.93%
Total	100%	100%	100%

 REVENUE DISTRIBUTION SEGMENT-WISE         

( % age) 

Particulars	F.Y. 23	F.Y 22	F.Y 21
HI&I - Household Industrial and institutional	48.53%	63.99%	39.50%
Food	8.81%	12.87%	33.54%
Cosmetics	3.89%	2.50%	6.60%
Pharmaceuticals	1.35%	0.00%	0.00%
Industrial	0.73%	0.08%	0.27%
Agriculture	0.16%	0.13%	0.22%
Others	36.52%	20.43%	19.87%
Total	100.00%	100.00%	100.00%

Revenue By Operations

 (amount in Lakhs)

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• General Corporate Purpose.

• Funding to meet working capital requirements.

• Funding capital expenditure for plant and machinery installation in existing premises.

• Investment in its subsidiary DCPL Speciality Chemicals Private Limited for financing its capital expenditure towards the installation of plant and machinery.

 

 

Promoters and Management of Deepak Chemtex IPO

1. Mr. Saurabh Deepak Arora

2.  Ms. Trishla Baid

 

Deepak Chemtex IPO’s Lead Managers

• HEM SECURITIES LIMITED

 

Peers of Deepak Chemtex IPO

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's —.Deepak Chemtex IPO  is fixed at ₹76 to ₹80 per share, with an EPS of ₹7.9. Based on the issue price the company's P/E ratio is calculated at 10.12.

 

Dividend Policy

The company does not have a formal dividend policy. Its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

• Diverse product range for various industries.

• Global presence, selling products internationally.

• Quality manufacturing facility with certifications.

• Flexible packing options for customer needs.

• Balanced revenue distribution across regions and segments

 

IPO's Weaknesses

• Dependence on exports exposes to global risks.

• Limited dividend history and reliance on future earnings.

• Industry-specific risks, subject to regulations.

 

 

IPO GMP Today 

The latest  GMP of Deepak Chemtex IPO is RS. 32

 

Conclusion

 The Deepak Chemtex IPO appears promising for potential investors due to its strengths, which include a diverse product range, a global market presence, and a well-established manufacturing facility. These factors suggest a strong foundation for potential growth and success. Nevertheless, investors need to carefully weigh the associated risks, particularly the company's reliance on exports and exposure to industry-specific challenges. It's crucial, as with any investment, for individuals to conduct thorough research and assess their own risk tolerance before making a decision.

 

 

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.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.