Indian Emulsifier Limited specializes in the manufacture and supply of specialty chemicals including Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, and SMO & PIBSA Emulsifiers. Indian Emulsifier IPO is set to raise Rs. 42.39 crores. The issue is entirely a fresh issue of 32.11 lakh shares.
IPO opens
May 13, 2024
IPO Closes
May 16, 2024
IPO Size (Rs.)
₹42.39 Cr
IPO Size (shares)
3,211,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹125 to ₹132 per share
Minimum Lot
1000 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Ekadrisht Capital Private Limited
Registrar
Maashitla Securities Private Limited
Market maker
Ss Corporate Securities
About Indian Emulsifier IPO:
Company was originally incorporated as “Indian Emulsifier Private Limited” on December 05, 2020.
The Company was incorporated with the objective of Manufacturing and Supplying of Specialty Chemicals i.e., Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, SMO & PIBSA Emulsifiers.
The Company has its manufacturing plant at MIDC, Lote Parshuram, Tal. Khed, Ratnagiri,Maharashtra,
The facility has a production capacity of 4,800 metric tons per annum as on March 31, 2023 and 3,600 MT per annum for the period ended December 31, 2023, equipped with process control, innovative R&D centre, Quality Control and Application Laboratories.
They are into manufacturing of the Specialty chemicals industry, with a focus on Esters, Phosphate Esters, Imidazolines, Succinimides, Sulfosuccinates, Specialty Emulsifiers and formulated products. Our Company serves specialty chemicals to wide range of industries such as Mining, Textile, Cleaning Industry, PVC (Poly Vinyl Chloride)/ Rubber, Personal Care, Food and Other Industries.
The Promoter of company is Yash Tikekar.
Financials: Indian Emulsifier
Particulars/ Rs Lacs
9m Dec 2023
2022-23
2021-22
2020-21
Total Revenue
4,870.16
4,118.35
1,768.31
Nil
Profit After Tax (PAT)
675.01
389.44
4.31
-0.37
Share Capital
901.12
811.01
811.01
1
Net worth#
2,636.35
1,204.35
814.94
0.63
Earnings per share (Diluted)
8.66
4.8
0.05
Nil
Net Asset Value
29.26
14.85
10.05
6.3
Total borrowings
2,244.45
2,030.44
1,068.54
58.91
Post issue Share Capital
1222
FV
10.0
IPO price
132.0
EPS Fy23
3.2
PE Fy23
41.4
EPS Fy24 (annualized)
7.4
PE Fy24 (annualized)
17.9
Market cap in Lacs
16,130
Market cap / Sales
3.92
Anchors: Indian Emulsifier IPO
Indian Emulsifier IPO: Salient Points
The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr. No
Particulars
Amount
1.
Funding of Capital Expenditure requirements of our Company towards purchase of Plant & Machinery, Civil work and installation cost thereon.
2,091.54
2.
Funding Working Capital Requirements of our Company.
850.00
3.
General Corporate Purposes#
[●]
Key Metrics
Key Financial Performance
December 31,2023
March 31, 2023
March 31, 2022
March 31, 2021
PAT Margin (%) (4)
13.87%
9.46%
0.24%
–
Return on equity (%) (5)
25.61%
32.33%
0.53%
(58.65%)
Return on capital employed (%) (6)
38.03%
55.50%
7.19%
(58.65%)
Debt-Equity Ratio (times) (7)
0.51
0.97
0.94
–
Net fixed asset turnover ratio (times) (8)
3.46
3.24
1.81
–
Current Ratio (times) (9)
2.11
2.19
2.92
1.01
Net profit ratio (%) (10)
13.87%
9.46%
0.24%
–
Share of revenue through application of products across various Industry Segments are as under:
Industry Segment
December 31, 2023
%
March 31,2023
%
March 31,2022
%
March 31, 2021
%
Mining
1,315.80
27.02%
961.4
22.99%
371.55
21.01%
Nil
NA
Personal Care
1,169.80
24.02%
919.9
22.00%
407.51
23.05%
Nil
NA
PVC / Rubber
1,022.30
20.99%
711.1
17.01%
335.45
18.97%
Nil
NA
Textile
681.2
13.99%
753.6
18.02%
300.49
16.99%
Nil
NA
Cleaning
341.00
7.00%
335.85
8.03%
158.8
8.98%
Nil
NA
Other Industries
340.16
6.98%
499.5
11.95%
194.51
11.00%
Nil
NA
Peers
Name of Company
CMP
FaceValue (₹)
PE Ratio (times)
RoNW(%)
NAV per Share(₹)
Indian Emulsifier Limited
132
10.00
41.4(17.9)-
32.34
14.85
Fine Organic Industries Limited
4,400.15
5.00
22.84
38.80%
99.29
Fineotex Chemical Limited
374.00
2.00
79.57
19.30%
24.34
They have a multipurpose facility designed for high flexibility to meet evolving customer demands for specialty chemicals.
Their Revenue from operations has Increased from Rs.17 Crores in FY22 to Rs.41 Crores in FY23, while PAT has Increased from 4 Lakhs in FY22 to 4 Crores in FY23.
Indian Emulsifier IPO is coming at a PE ratio of 41x (FY23 Earnings) and 17.9x (fy24 earnings)
I intend to apply in Indian Emulsifier IPO subject to availability of funds. The company is in the niche field of specialty chemicals.
GMP as reported on social media has been Rs. 160.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.