An IPO is being launched by Chemkart India Ltd on the BSE SME platform, aiming to raise funds through a book-built issue. The offering includes up to ₹80.08 crore, comprising a fresh issue of 26,00,000 equity shares and an offer for sale (OFS) of 6,29,200 equity shares. The total issue size amounts to 32,29,200 equity shares.
Company Overview
Chemkart India Ltd is a B2B distributor and processor of nutraceutical raw materials, supplying a wide range of active ingredients used in dietary supplements, sports nutrition, herbal formulations, and health products. The company offers products such as plant-based extracts, proteins, vitamins, amino acids, sweeteners, and functional food ingredients sourced from global manufacturers.
With a strategically located facility in Bhiwandi, Maharashtra (28,259 sq. ft.), Chemkart provides services including repacking, labeling, grinding, blending, warehousing, and supply chain management. It operates under stringent quality control standards with certifications like FSSAI, Kosher, and Halal.
Chemkart caters to a broad base of Indian manufacturers in the nutraceutical and pharmaceutical sectors, combining global sourcing with localized repackaging and logistics. The IPO proceeds will support capacity expansion through its wholly owned subsidiary, Easy Raw Materials Pvt Ltd, alongside debt reduction and working capital augmentation.
The company became a public limited entity in February 2024 and has demonstrated strong financial performance over the last two years, positioning itself for the next phase of growth in India’s booming health and wellness industry.
Lot Size & Investment Details
| Investor Type | Lots | Shares | Investment |
|---|---|---|---|
| Retail (Minimum) | 1 | 600 | ₹1,41,600 |
| Retail (Maximum) | 2 | 1200 | ₹2,83,200 (capped by retail limit) |
| HNI (S-HNI) | 3 | 1,200 | ₹2,83,200 at upper band |
Financial Highlights
| Particulars | FY22 | FY23 | FY24 | FY25 (Till Sept)* |
|---|---|---|---|---|
| Revenue from Operations | ₹87.43 Cr | ₹131.69 Cr | ₹132.83 Cr | ₹205.46 Cr |
| EBITDA | ₹9.23 Cr | ₹14.08 Cr | ₹23.21 Cr | — |
| Profit After Tax (PAT) | ₹5.48 Cr | ₹7.66 Cr | ₹14.52 Cr | ₹24.26 Cr |
| PAT Margin (%) | 6.27% | 5.82% | 10.93% | — |
| Earnings Per Share (EPS) | ₹8.06 | ₹15.28 | ₹25.54 | — |
| Return on Capital Employed (ROCE) | 52.84% | 50.04% | 45.52% | — |
| Net Worth | ₹6.84 Cr | ₹14.50 Cr | ₹29.01 Cr | ₹53.29 Cr |
| Total Borrowings | ₹37.50 Cr | ₹11.33 Cr | ₹12.55 Cr | ₹17.03 Cr |
Issue Structure
The IPO is a book-built issue of 32,29,200 equity shares, aggregating up to ₹80.08 crore.
It includes:
- Fresh Issue: 26,00,000 equity shares
- Offer for Sale (OFS): 6,29,200 equity shares
Market Maker Reservation: 1,66,200 shares (5.15% of the total issue)
Net issue (excluding market maker portion) is allocated as follows:
- Anchor Investors: 9,11,400 shares (28.22%)
- QIB (Qualified Institutional Buyers): 6,09,600 shares (18.88%)
- NII (Non-Institutional Investors / HNIs): ~4,59,000 shares (~14.98%)
- Retail Individual Investors (RII): 10,78,800 shares (33.41%)
Risks
SME Listing Risk: The IPO is being listed on the BSE SME platform, which may result in lower liquidity and higher price volatility compared to mainboard stocks.
Supplier Dependency: The company relies on a few key suppliers for sourcing raw materials. Any disruption or loss of supplier relationships could impact business operations.
No Exclusive Contracts: Absence of exclusive agreements with suppliers and clients may lead to competitive pressure and revenue uncertainty.
Inventory & Working Capital Intensive: As a B2B distributor with value-add processing, Chemkart needs to maintain a large and varied inventory, making the business working capital intensive.
Competitive Industry: Operates in a highly competitive nutraceutical and ingredients market, with pressure on margins from domestic and global suppliers.
Foreign Sourcing Risk: Heavy reliance on imported ingredients exposes the business to currency fluctuations, import restrictions, and global supply chain delays.
Limited Operating History as Public Co.: Converted to a public limited company only in February 2024, and thus has limited track record under SEBI compliance as a listed entity.
Summary
Chemkart India Ltd is launching a book-built SME IPO of 32.29 lakh shares in the ₹236–₹248 price band, aiming to raise up to ₹80.08 crore. The issue includes both fresh capital and an offer for sale, along with a market-maker reservation. Proceeds will be used for capacity expansion through its subsidiary, Easy Raw Material Pvt Ltd, debt reduction, and working capital needs. With public company status effective February 2024 and strong profit growth in FY24, Chemkart is positioning itself as a leading B2B distributor and processor of nutraceutical ingredients in India’s fast-growing health and wellness sector.
Allotment Details – Chemkart India Ltd IPO
Basis of Allotment Finalization: July 10, 2025
Refund Initiation: July 11, 2025
Shares Credited to Demat Accounts: July 11, 2025
Listing Date (BSE SME): July 14, 2025 (Tentative)
Registrar: KFin Technologies Ltd
Allotment Status Link: (Will be available on KFintech’s website after allotment)
