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Ducol Organics and Colours IPO ( Ducol Organics IPO) is a fresh issue of 40,40,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 78 per equity share. Ducol Organics and Colours IPO is an NSE SME IPO will be raising ₹31.51 crores. The Ducol Organics IPO market lot is of 1600 shares. The Company offers a range of pigment dispersions for various industries like Paints, Inks, Textile, Detergent, Paper, Rubber and Plastics. color solutions for various industries like paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG.

• Ducol Organics and Colours offers a range of pigment dispersions for various industries like Paints, Inks, Textile, Detergent, Paper, Rubber and Plastics. color solutions for various industries like paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG. The Company is engaged in the business of manufacturing and selling pigment dispersions, preparations, concentrates, paste colorants and master batches.
• Ducol Organics and Colours has a pan-India customer base, with integrated operations which involves development, manufacturing, marketing and distribution of a wide range of dispersions & masterbatches primarily to industries such as paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG.
• It has well equipped Lab to develop process capabilities and product application techniques with specialized and dedicated team of professionals and engineers constantly keep abreast with the latest technology and trends as per the requirement of the industry. Our development team has a deep understanding of color, color management and dispersion technology.
• Company is operating out of 2 units in Taloja and a third unit at Mahad is in process of getting established with trials currently being conducted. it has adequate infrastructure, production capacities and the required technical support of well equipped laboratories to cater to our customers needs with regards product development, quality assurance and product application support. It is well placed to offer comprehensive product solutions to its customers.
• Aamer Ahmed Farid and Hani Ahmed Farid are the Promoters of the Company.

Ducol Organics offers following pigment dispersions and preparations:

• Dutint – water based dispersions for decorative paints
• Duplast – MB for plastic industry
• Duprint – water based dispersion for printing ink formulations
• Dutex – pigment pastes for textile printing industry
• Dusperse – for soap and detergent industry
• Dupralin – for paper industry
• Dupren – used in rubber industry
• Ducem – Dry dispersions various general applications

The installed capacities at its units is as follows:
Unit I Wet Dispersions 3,500 MTPA
Unit II Master Batch 2,000 MTPA
Dry Dispersions 10,000 MTPA
Unit III Dry Dispersions 15,000 MTPA

Ducol Organics IPO: Financials

Peers

Salient Points

• The Public Issue will constitute 27.79% of the post-issue paid-up capital of the company.
• It intends to utilize the proceeds of the fresh Issue of 63,72,000 Equity Shares 1) To meet Working Capital requirements 2) General Corporate Purpose 3) To meet issue expenses.
• The operations are subject to extensive environmental and hazardous waste management laws and regulations in India.
• Its upcoming unit at Mahad is on the trial run and will initially produce dry dispersions with an installed capacity of 15,000 MT per year.
• Company a pan-India customer base, with integrated operations which involves development, manufacturing, marketing and distribution of a wide range of dispersions & masterbatches primarily to industries such as paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG.
• The business requires significant amount of working capital.
• Social media reports indicate a GMP of Rs. 6-10 (issue price Rs. 78/-)
• The company has paid 30% dividend in last two fiscals.
• PE ratio of around 14x based on annualizing 6m FY23 performance and 23X otherwise.
• There is a jumpo in profits in last 1 1/2 years. One cannot rule ourt window dressing before IPO, though revenues have also gone up. .
• I am bit inclined to subscribe to Ducol Organics IPO even though present premium levels quoted by various sources in SM are not high.
• Surprisingly bankers to the company are co-operative Banks NKGSB Co-operative Bank Limited, Apna Sahakari Bank Limited.
• Wii take a call on how much to apply only after seeing HNI subscription on Day3
• SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
• First Overseas as lead manager, SME IPOs has a mixed record but majoprity of SME IPOs have listred in Positive region.
• Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.

• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.