Unilex Colours and Chemicals Limited is coming up with an IPO with a fresh issue of 36,00,000 shares worth INR 31.21 crores. The company aims to meet working capital needs, repay borrowings, and fund general corporate purposes. 

Unilex Colours IPO – Important Dates 

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Unilex Colours and Chemicals Limited IPO – Company Profile 

Unilex Colours and Chemicals Limited specializes in manufacturing Pigment Blue 15:3 and 15:4, catering to domestic and international markets in industries such as plastics, textiles, and paints. Their ISO-certified facility ensures high-quality pigment solutions and global compliance. 

The company exports to countries including Vietnam, Brazil, and Russia, utilizing direct marketing to build personal customer connections. It also showcases products through exhibitions and conferences, expanding its global presence. 

The company offers flexible packaging options, including Multilayer Paper Bags, Corrugated Boxes, HDPE-coated bags, wooden pallets, and Jumbo Bags, ensuring safe and customized solutions to meet diverse client needs. 

Unilex Colours And Chemicals Ltd IPO Fundamental Analysis 

Unilex Colours and Chemicals Limited’s financial analysis reveals a mixed performance. Revenue has decreased, while profitability and EPS have improved. Increased debt reliance and lower liquidity raise concerns, alongside reduced RoNW and slower inventory turnover. 

• Revenue Trend: The revenue decreased from ₹14,527.46 lakhs in March 2022 to ₹13,939.03 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 14,385.01 lakhs.
• Equity and Liabilities: Equity have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹471.17 lakhs in March 2022 to ₹616.67 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹4.70 in March 2022 to ₹6.16 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has reduced from 16.79% to 16.73%, indicating a decrease 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 decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Unilex Colours IPO Financial Analysis 

Unilex Colours and Chemicals Limited IPO Peer Comparison 

Unilex Colours and Chemicals Limited shows strong earnings per share and return on net worth compared to Kesar Petroproducts. Still, Sudarshan Chemical Industries leads significantly in revenue, profitability, and market valuation, indicating its dominant industry position. 

Unilex Colours And Chemicals Ltd IPO Objective 

The main objective of Unilex Colours and Chemicals Limited is to meet working capital requirements and repay a portion of the company’s borrowings. 

1. To Meet Working Capital Requirements: The company intends to utilize INR 15 crores from the Net Proceeds of the Offer for additional working capital, with the remainder sourced from internal accruals and borrowings to support inventory and operational needs. 

2. Repayment of a portion of specific borrowing availed by their company: The company plans to utilize INR 10 crores from the Net Proceeds to partially repay outstanding borrowings, aiming to reduce indebtedness, lower debt servicing costs, and improve leverage for future growth and expansion opportunities. 

3. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations. 

Unilex Colours IPO Risks And Challenges 

Unilex Colours and Chemicals Limited’s risk includes revenue dependence on top products, reliance on third-party vendors for supply stability, and operational challenges stemming from single facility management, which could impact financial performance and customer relationships. 

• The company generates substantial revenue from printing inks and paints, with its top five products accounting for over 65% of total sales. However, changing market dynamics could affect future revenue stability. 

• The company relies on third-party vendors for some products without long-term contracts, which may affect the stability and predictability of supply. If disruptions occur, this could potentially impact sales and customer relationships. 

• Operating from a single manufacturing facility in Maharashtra, efficient management is essential for smooth operations. Equipment reliability, labour relations, and regulatory compliance are crucial to maintaining financial performance and operational continuity. 

Unilex Colours And Chemicals Ltd IPO – Industry & Market Potential 

India’s chemical industry, covering over 80,000 products, is highly diversified and ranked 6th globally. Valued at $220 billion in 2022, it’s projected to reach $300 billion by 2025 and $1 trillion by 2040. 

India’s chemical industry covers over 80,000 products and is set to grow, reaching $304 billion by 2025 and $1 trillion by 2040. Speciality chemicals and petrochemicals lead demand, supported by rising exports and domestic consumption. 

The Indian chemical industry has opportunities due to supply chain disruptions in China and global trade conflicts. Fiscal incentives and integrated hubs under the PCPIR policy aim to boost investments and structural advancements in the sector. 

Unilex Colours and Chemicals Limited IPO – Type of Offer 

Unilex Colours and Chemicals Limited is coming up with an IPO with a fresh issue of 36,00,000 shares worth INR 31.21 crores. The company aims to meet working capital needs, repay borrowings, and fund general corporate purposes. 

Unilex Colours IPO Offer Size 

The offer size of Unilex Colours and Chemicals Limited is INR 31.32 crores, consisting of a fresh issue of 36,00,000 shares. The company seeks funds to meet working capital needs, repay borrowings, and fund general corporate purposes.

Unilex Colours and Chemicals Limited IPO Allotment Structure 

Unilex Colours and Chemicals Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 192,000 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): 15% 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 35% 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. 192,000 shares, are reserved for market makers. 

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How to apply for Unilex Colours and Chemicals IPO?

To apply for the Unilex Colours and Chemicals Limited IPO through Alice Blue, 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.

1. Check for IPO Details: Once your account is active, you can check for the Unilex Colours and Chemicals Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Unilex Colours and Chemicals Limited 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.

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How do you check Unilex Colours and Chemicals IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. 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.
3. 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.
4. Select the Unilex Colours and Chemicals Limited 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 Unilex Colours and Chemicals Limited IPO.
5. 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Unilex Colours and Chemicals Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Unilex Colours and Chemicals Limited 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 Exchange (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.

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Unilex Colours and Chemicals Ltd IPO Offer Registrar

The registrar for the Unilex Colours and Chemicals Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

LINK INTIME INDIA PRIVATE LIMITED

C- 101, 1st Floor, 247 Park, L.B.S Marg, 

Vikhroli (West), Mumbai – 400083,

Maharashtra, India

Telephone: +91 810 811 4949, 

Email: [email protected]

Website: www.linkintime.co.in 

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Unilex Colours and Chemicals IPO – FAQs