Deepak Chemtex Sets Price Band for Rs 23.04 Cr IPO

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Mumbai (Maharashtra) [India], November 27: Deepak Chemtex Limited was founded in 1997 and is a company that produces colorants used in food, pharmaceuticals, and cosmetics, among other sectors. The company is considering issuing a fresh 28.8 lakh shares in an SME initial public offering (IPO) to raise Rs 23.04 Cr.

For the book-built issue, Deepak Chemtex initial public offering (IPO) will open for subscription on November 29, 2023, and end on December 1, 2023. On Wednesday, December 6, 2023, the share allotment is anticipated to be completed. The proposed listing date for the Deepak Chemtex IPO is Monday, December 11, 2023, and it will take place on the BSE SME platform.

The minimum lot size for the issue is 1600 shares, and Deepak Chemtex has set its IPO price band at Rs 76 to Rs 80 per share. Therefore, for a single bid lot, individual investors must deposit a minimum of Rs 128,000.

According to Deepak Chemtex IPO DRHP, 50% of the net issue has been reserved for qualified institutional buyers (QIB), 35% for retail investors and 15% for the NII category. As per the DRHP of the SME IPO, 1,364,800 shares have been allocated for the QIB category, 411,200 shares for NII, 956,800 shares for RII, and 147,200 equity shares for the market makers (MM) category.

Bigshare Services Pvt Ltd is the registrar for the Deepak Chemtex IPO, while Hem Securities Limited is the book-running lead manager. The IPO’s net proceeds will be utilised for general corporate purposes, investment in the company’s subsidiary DCPL Speciality Chemicals Private Limited, funding for working capital requirements, and capital expenditures, as per the DRHP.

Deepak Chemtex Private Ltd reported a revenue from operations of Rs 46.70 Cr and an EBITDA of Rs 7.99 Cr with a margin of 17.11% in FY23. The company posted a net profit of Rs 6.31 Cr and PAT margin stood at 13.51% in FY23. In 2023 Deepak Chemtex Private incorporated a wholly owned subsidiary company in New Jersey, USA named “South West Chemicals Corporation”.

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