Chemkart India Limited, a distributor of high-quality food and health ingredients, is launching its Initial Public Offering (IPO) on 7 July 2025, closing on 9 July 2025, with a tentative listing date of 14 July 2025 on both BSE and its SME platform. The issue combines a fresh equity issuance, an offer for sale (OFS), and a reserved allocation for market makers, totaling 32.29 lakh shares, valued at around ₹80 crore.
This IPO aims to meet multiple objectives: funding new manufacturing capacity, strengthening working capital, and providing liquidity through the OFS. The fresh equity component values at ₹60.36 crore, while the OFS equals ₹15.60 crore. A separate market maker portion of 1.66 lakh shares (₹4.12 crore) will help improve post-listing liquidity.
IPO Structure and Basics
The IPO is a book-building issue spanning three days. With a face value of ₹10 per share, the price band is set at ₹236 to ₹248. Each lot contains 600 shares, which equates to ₹1.48 lakh for retail investors. Promoters Ankit Mehta, Parul Mehta, and Shaileesh Mehta will dilute their stake partially, though no exact promoter shareholding post-issue is specified.
The registrar is Bigshare Services Private Limited. Key dates include allotment on 10 July, refund initiation on 11 July, and listing on 14 July. The IPO follows SEBI’s standard allocation: up to 47.10% to QIBs, at least 33.41% to retail investors, at least 14.34% to NIIs, and 5.15% to market makers.
Grey Market Premium and Listing Expectations
As of 4 July 2025, there is no grey market premium (GMP) for Chemkart India. This suggests that grey market traders anticipate a flat listing around ₹248. GMP trends may evolve closer to the IPO, but currently do not indicate immediate upside.
Company Overview and Business Model
Chemkart India operates in the B2B supply chain for food, health, and nutraceutical ingredients. Incorporated in 2015 and headquartered in Mumbai, the company imports, processes, packages, and distributes products such as amino acids, vitamins, sweeteners, herbal extracts, and sports nutrition ingredients. It serves clients across pharmaceuticals, nutraceuticals, food and beverages, cosmetics, animal nutrition, textiles, and agriculture.
Operations include an ISO-certified facility in Bhiwandi for processing and warehousing raw materials. The business model is built on strong supplier and client relationships, with globally sourced products from FDA- and GMP-certified manufacturers in Europe, the US, and China.
Financial Performance and Growth Momentum
Chemkart India has demonstrated impressive growth, especially in FY2025:
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Revenue surged 55% from ₹132.8 crore in FY2024 to ₹205.5 crore in FY2025
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Profit after tax jumped 68% from ₹14.5 crore to ₹24.3 crore
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Assets doubled from ₹53.5 crore to ₹86.1 crore
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Net worth expanded from ₹29 crore to ₹53.3 crore
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Debt rose modestly to ₹17 crore, supporting operational growth
By contrast, FY2023 figures showed ₹131.7 crore in revenue and ₹7.7 crore in PAT. This robust uptake reflects both volume growth and profitability scaling.
Key financial ratios:
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PE ratio: 9.7
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EPS: ₹25.54
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Return on Net Worth (RoNW): 45.5%
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ROE: 59%
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ROCE: 49%
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EBITDA margin: 16.1%
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Price-to-Book Value: 8.12
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Market cap pre-issue: ₹300 crore
These metrics show a fundamentally sound business with healthy returns, placing it as a strong SME opportunity in its segment.
Use of IPO Funds
The fresh issue of ₹60.36 crore has a clear purpose:
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Invest in a subsidiary’s manufacturing infrastructure
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Strengthen working capital funding for larger customer contracts
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Repay select borrowings
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Meet general corporate expenses
By raising funds through equity, Chemkart India aims to scale its business, enhance margins, and reduce interest expenses.
Strengths and Competitive Edge
Chemkart India has several advantages:
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Strong double-digit revenue and profit growth
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High returns on equity and capital
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Diversified product range with in-house processing
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Client base across fast-growing sectors like nutraceuticals and food processing
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ISO-certified manufacturing ensures quality and compliance
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Comprehensive warehousing and supply-chain control
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Positive brand reputation supported by quality and reliability
Its processing and packaging capabilities enhance its value chain, enabling it to deliver standardized, high-quality formulations to customers.
Risks and Mitigation Factors
Despite strong prospects, several risks remain:
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SME listing adds liquidity challenges and volatility
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Sector is price-sensitive; forex or commodity input swings can impact margins
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Supply chain dependence on top suppliers and countries (especially China) poses risk
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Regulatory or logistic hiccups could disrupt operations
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Minimal debt could still impact balance sheet if revenues fluctuate
The response includes improving supplier diversification, hedging input costs, and implementing tighter supply-chain oversight.
Strategic Opportunities Ahead
Chemkart’s growth outlook is supported by:
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Expansion of nutraceutical and sports nutrition demand in India
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Rising health and wellness trends across industries
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Government push towards nutrition-led agriculture and manufacturing
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Opportunities to export to emerging markets in Asia, Africa, and Latin America
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Potential to introduce proprietary, made-in-India branded formulations
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Capacity to participate in private-label programs for large F&B players
The IPO could facilitate expansion into newer geographies and higher-value product lines.
Lot Size, Pricing, and Investor Guidance
Retail investors must apply for a minimum of 600 shares (₹1.48 lakh) and a maximum of one lot. HNIs have higher minimums—1,800 shares (₹4.46 lakh). Price bids can be placed anywhere between ₹236 and ₹248, including at the cutoff.
Investors can apply via ASBA through net banking or brokers with UPI mandates. Utilizing multiple demat accounts within a family may enhance allotment chances. Applications require fund blocking until the allotment cut-off.
Allotment, Refunds, and Listing Procedure
Allotment results are expected on 10 July, with refunds initiated by 11 July. Dematerialized shares should be credited by 11 July, and official trading begins on 14 July 2025, on the BSE SME exchange.
Investors can check the status via the registrar’s portal or the BSE website using PAN or application numbers.
Expert Opinion and Valuation Analysis
Analysts suggest that Chemkart offers a strong SME investment opportunity. The IPO appears appropriately priced, with a conservative valuation at ~10× earnings and double-digit ROE. That said, its SME listing entails structural liquidity risk and higher volatility. Long-term investors looking for exposure to India’s wellness and food ingredients segment may find Chemkart India a logical fit.
Word of caution: short-term GMP is flat and immediate listing gains are unlikely—this underscores its position as a strategic portfolio addition rather than a short-flip bet.
Conclusion
The Chemkart India IPO is a rare opportunity to invest in a growing B2B ingredients supplier with strong profitability, expanding infrastructure, and a clear growth trajectory. The mix of fresh funds and OFS offers both growth capital and liquidity options for founders.
Investors should assess personal risk tolerance, recognizing SME market dynamics, sector cyclicity, and input variability. Long-term investors with belief in India’s wellness economy, quality processing, and nutraceutical demand may find Chemkart India an appealing bet.
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