Indian Emulsifier Limited consists of a fresh issue of 35,00,000 shares worth INR 42.39 crores. The company aims to secure funding for capital expenditure, working capital, and general corporate purposes.
Indian Emulsifier Ltd IPO – Important Dates
| Indian Emulsifier IPO Date | May 13, 2024 to May 16, 2024 |
| Indian Emulsifier IPO Listing Date | May 22, 2024 |
| Indian Emulsifier IPO Price | INR 125-132 per share |
| Indian Emulsifier IPO Lot Size | 1000 shares |
| Indian Emulsifier IPO Total Issue Size | INR 42.39 crores |
| Indian Emulsifier IPO Basis of Allotment | May 17, 2024 |
| Indian Emulsifier IPO Initiation of Refunds | May 20, 2024 |
| Indian Emulsifier IPO Credit of Shares to Demat | May 20, 2024 |
| Indian Emulsifier IPO Issue Type | Book Built Issue IPO |
| Indian Emulsifier IPO Listing At | NSE SME |
Indian Emulsifier IPO – Company Profile
Indian Emulsifier Limited specializes in manufacturing specialty chemicals like esters, phosphate esters, and imidazolines. It serves diverse industries, including mining, textiles, PVC/rubber, personal care, and food, catering to their specific needs with formulated products.
With an enhanced production capacity of 4,800 metric tons per annum, facilitated by additional reactors, their manufacturing facility boasts advanced process control, innovative R&D, and quality control, ensuring excellence through dedicated application laboratories.
Their multipurpose facility offers exceptional flexibility. It features high-pressure stainless-steel reactors capable of batch yields from 100 kg to 8,000 kg. With a wide temperature and pressure range, it is equipped with condenser and vacuum arrangements, ensuring versatility.
Indian Emulsifier Ltd IPO Review
Indian Emulsifier Technologies’ financial analysis reveals a mixed performance. Revenue surged, indicating significant growth. Profitability, EPS, and RoNW notably improved, fostering investor confidence. Equity and liabilities increased steadily while the debt-equity ratio declined, signaling reduced reliance on debt financing.
- Revenue Trend: The revenue increased from ₹1,768.31 lakhs in March 2022 to ₹4,117.97 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 4,867.36 lakhs.
- Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹4.31 lakhs in March 2022 to ₹675.01 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.05 in March 2022 to ₹8.66 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has grown from 0.53% to 25.60%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has declined, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Net Profit Ratio: The net profit ratio has increased from 0.24% to 13.87%, signaling increased profitability relative to revenue.
Indian Emulsifier IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 1,768.31 | 4,117.97 | 4,867.36 |
| Equity (₹ in lakhs) | 814.94 | 1,204.35 | 2,636.35 |
| Expenses (₹ in lakhs) | 1,756.28 | 3,654.63 | 4,056.30 |
| Profit and Loss After Tax (₹ in lakhs) | 4.31 | 389.44 | 675.01 |
| Diluted EPS only (₹) | 0.05 | 4.80 | 8.66 |
| Return on Net Worth (%) | 0.53 | 32.34 | 25.60 |
| NAV per Equity Share (₹) | 10.05 | 14.85 | 29.26 |
| Total Assets (in lakhs) | 1,910.22 | 3,432.26 | 6,176.63 |
| Total Liabilities (in lakhs) | 1,095.28 | 2,227.91 | 3,540.28 |
| Debt-Equity Ratio (in times) | 0.94 | 0.97 | 0.51 |
| Current Ratio (in times) | 2.92 | 2.19 | 2.11 |
| Net profit ratio (in %) | 0.24 | 9.46 | 13.87 |
Indian Emulsifier Ltd IPO Peer Comparison
Indian Emulsifier Limited lacks available NAV and P/E data, displaying a RoNW indicative of moderate performance. Fine Organic Industries Limited exhibits solid financials and a high rank. Fineotex Chemical Limited shows moderate financials with a lower rank.
| Company | CMP (₹) | Face Value (₹) | P/E (₹) | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Indian Emulsifier Limited | NA | 10 | NA | 6.48 | 32.34 | 29.26 |
| Fine Organic Industries Limited | 4,400.15 | 5 | 22.84 | 192.63 | 38.80 | 99.29 |
| Fineotex Chemical Limited | 374.00 | 2 | 79.57 | 4.70 | 19.30 | 24.34 |
Indian Emulsifier Limited IPO Objective
The main objective of Indian Emulsifier Limited is to secure funding for capital expenditure towards plant, machinery, civil work, and installation costs, alongside meeting working capital requirements to facilitate company operations and growth.
- Funding of capital expenditure requirements of the company towards the purchase of Plant & Machinery, Civil work, and installation cost thereon: A portion of their capital expenditure aims to acquire Plant & Machinery and cover associated Civil work and installation costs, totaling INR 20.92 crores. This strategic investment aligns their technological infrastructure with upgraded requirements, supporting sales growth.
- Funding working capital requirements: The aim is to effectively manage the company’s working capital requirements and funding patterns, in line with projected needs and holding levels, to maintain operational stability and support the growth of the company. The company plans to utilise INR 8.50 crores for the said purpose.
- General Corporate Purposes: The company will balance funds towards general corporate goals, including acquisition/hiring of land/property, hiring human resources, strategic alliances, funding growth opportunities, servicing repayment obligations, capital expenditure, working capital, strategic initiatives, and ongoing corporate exigencies.
Indian Emulsifier Ltd IPO Risks And Challenges
Indian Emulsifier Limited’s risks include various outstanding litigation matters, potential lease termination risks at its registered office and warehouse, and operational risks at its manufacturing facility, which could impact business, reputation, and financial results.
- The company faces various outstanding litigation matters, including tax proceedings and other litigation involving directors, promoters, subsidiaries, and group companies, which may adversely impact its business, reputation, and financial results.
- The company’s registered office and warehouse unit, utilized through an arrangement with Chemical Brothers Private Limited, pose risks; any termination or alteration of lease terms could require securing alternative premises potentially under less favorable conditions.
- The company’s operations at its manufacturing facility in Maharashtra face risks, including equipment breakdowns, natural disasters, and labor disputes. Regulatory contraventions could also disrupt operations, potentially impacting business, finances, and results.
Indian Emulsifier Limited IPO – Industry & Market Potential
The global specialty chemicals market, valued at US$615.7 billion in 2022, is projected to reach US$866.9 billion by 2030, driven by demand from emerging economies and diversification across end-use sectors.
With diverse segments like bulk, specialty, agrochemicals, and more, India ranks globally as a top producer. It aims for US$300 billion by 2025 and US$1 trillion by 2040, supported by strong exports and a de-licensed sector.
The Indian chemicals industry is poised to reach US$304 billion by 2025, driving GDP growth. Specialty chemicals hold a 22% market share, with a 12% CAGR anticipated by 2022, attracting Rs. 8 lakh crore investment.
Indian Emulsifier IPO – Type of Offer
Indian Emulsifier Limited consists of a fresh issue of 35,00,000 shares worth INR 42.39 crores. The company aims to secure funding for capital expenditure, working capital, and general corporate purposes.
Indian Emulsifier Ltd IPO Offer Size
The offer size of Indian Emulsifier Limited is INR 42.39 crores, consisting of a fresh issue of 35,00,000 shares. The company seeks funds for capital expenditure, working capital, and general corporate purposes.
Indian Emulsifier IPO Allotment Structure
Indian Emulsifier allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 161,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e., 161,000 shares, are reserved for marker makers.
How to apply for Indian Emulsifier’s Ltd IPO?
To apply for the Indian Emulsifier IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Indian Emulsifier IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Indian Emulsifier IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Indian Emulsifier’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Indian Emulsifier IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Indian Emulsifier IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Indian Emulsifier IPO:
● Registrar’s Website: Visit the website of Maashilta Securities Private Limited, the registrar of the Indian Emulsifier IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Indian Emulsifier Ltd IPO Offer Registrar
The registrar for the Indian Emulsifier IPO is Maashilta Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
MAASHITLA SECURITIES PRIVATE LIMITED
451, Krishna Apra Business Square,
Netaji Subhash Place, Pitampura,
Delhi 110 034, India.
Telephone: +011 4512 1795
Email: [email protected]
Website: www.maashitla.com
Indian Emulsifier IPO – FAQs
The allotment date of the Indian Emulsifier IPO is May 17, 2024.
The price band of the issue is INR 125-132 per share.
The offer size of Indian Emulsifier Limited is INR 42.39 crores, consisting of a fresh issue of 35,00,000 shares. The company seeks funds for capital expenditure, working capital, and general corporate purposes.
The listing date of the Indian Emulsifier IPO is May 22, 2024.
