Indian Emulsifier IPO (SME) Overview

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 opensMay 13, 2024
IPO ClosesMay 16, 2024
IPO Size (Rs.)₹42.39 Cr
IPO Size (shares)
3,211,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹125 to ₹132 per share
Minimum Lot1000 Shares
Listing AtNSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerEkadrisht Capital Private Limited
RegistrarMaashitla Securities Private Limited
Market makerSs 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 Lacs9m Dec 20232022-232021-222020-21
Total Revenue4,870.164,118.351,768.31Nil
Profit After Tax (PAT)675.01389.444.31-0.37
Share Capital901.12811.01811.011
Net worth#2,636.351,204.35814.940.63
Earnings per share (Diluted)8.664.80.05Nil
Net Asset Value29.2614.8510.056.3
Total borrowings2,244.452,030.441,068.5458.91
Post issue Share Capital1222   
FV10.0   
IPO price132.0   
EPS Fy233.2   
PE Fy2341.4   
EPS Fy24 (annualized)7.4   
PE Fy24  (annualized)17.9   
Market cap in Lacs16,130   
Market cap / Sales3.92   

Anchors: Indian Emulsifier IPO

Indian Emulsifier IPO: Salient Points

  • The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr. NoParticularsAmount
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 PerformanceDecember 31, 2023March 31, 2023March 31, 2022March 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)0.510.970.94
Net fixed asset turnover ratio (times) (8)3.463.241.81
Current Ratio (times) (9)2.112.192.921.01
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 SegmentDecember 31, 2023%March 31, 2023%March 31, 2022%March 31, 2021%
Mining1,315.8027.02%961.422.99%371.5521.01%NilNA
Personal Care1,169.8024.02%919.922.00%407.5123.05%NilNA
PVC         / Rubber1,022.3020.99%711.117.01%335.4518.97%NilNA
Textile681.213.99%753.618.02%300.4916.99%NilNA
Cleaning341.007.00%335.858.03%158.88.98%NilNA
Other Industries340.166.98%499.511.95%194.5111.00%NilNA
  • Peers
Name of CompanyCMPFace Value (₹)PE          Ratio (times)RoNW (%)NAV per Share (₹)
Indian Emulsifier Limited13210.0041.4(17.9)-32.3414.85
Fine Organic Industries Limited4,400.155.0022.8438.80%99.29
Fineotex Chemical Limited374.002.0079.5719.30%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.

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