The initial public offer (IPO) of Patel Chem Specialities received bids for 78,01,47,200 shares as against 50,12,800 shares on offer. The issue was subscribed 155.63 times.
Qualified Institutional Buyers (QIBs) bid for 13,99,71,200 shares, Non-Institutional Investors (NIIs) for 23,65,98,400 shares, while individual investors (IND category bidding for 2 lots) placed bids for 40,35,77,600 shares.
The issue opened for bidding on 25 July 2025 and it will close on 29 July 2025. The price band of the IPO is fixed between Rs 82 to Rs 84 per share. The minimum order quantity is 1600 equity shares. The equity shares will list on BSE’s SME platform.
The IPO comprises fresh issue of 70,00,000 equity shares. The promoter and promoter group shareholding will dilute to 68.86% from 95.13% pre-issue.
About 3,53,600 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 66,46,400 equity shares. The issue and the net issue will constitute 28.15% and 26.72%, respectively of the post issue paid up equity share capital of the company.
The company intends to utilize the net proceeds for funding its capital expenditure requirements towards setting up a plant at Indrad, Mehsana, for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) – Corn Starch Base & Potato Starch Base, Calcium Carboxymethylcellulose (CMC) and for general corporate purposes.
Ahead of the Patel Chem Specialities on 24 July 2025, raised Rs 16.69 crore from anchor investors. The board has allotted 19.87 lakh shares at Rs 84 per share to 8 anchor investors.
Patel Chem Specialities operates in the specialty chemicals sector, with a particular focus on the production of cellulose-based excipients. The company manufactures a diverse range of products that are critical to various industries, including pharmaceuticals, food and beverages, cosmetics, and numerous industrial applications. These chemicals are essential in the formulation of key products such as tablets, food additives, personal care items, and industrial formulations. The products serve vital roles as binders, disintegrants, thickeners, stabilizers, and gelling agents, each performing specialized functions across multiple sectors. As on 31 March 2025, the company had total strength of 136 employees on payroll basis.
The company recorded revenue from operations of Rs 105.09 crore and net profit of Rs 10.57 crore for the period ended 31 March 2025.