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Yasons Chemex Care IPO worth, ₹20.57 crore comprises entirely of a fresh issue and entails the issue of 51.42 lakh shares at the fixed IPO price of ₹40 per share . The stock will be listed on the SME segment of the NSE. Company is in the business of manufacturing of dyes and pigment paste and FMCG products

About Yasons Chemex Care Limited:

• Yasons Chemex Care Limited is a manufacturing company that was founded in 2017.
• The company is headquartered in Ahmedabad.
• Company is in the business of manufacturing of a)dyes and pigment paste; and b) FMCG products
• It also trades in both dyes, and pigments paste, which is primarily for meeting customer requirements.
• Some of its customers require a range of dyes or pigment paste besides the products it manufactures and sell. In these cases, company purchases the products, which are not manufactured by it and cater to the entire requirements of its customers.
• some of the key products of Yasons Chemex Care Limited:
  • FMCG items: The company produces a variety of FMCG items, including pocket perfumes, rose toner, hand sanitizer, and liquid hand wash.
  • Dyes: The company produces a wide range of dyes, including basic dyes, reactive dyes, food colorants, direct dyes, and vat dyes.
  • Pigment paste: The company produces pigment paste, which is used in a variety of industries, including the textile, plastics, and paper industries.

• The Promoter of Company are Yash Chemex Limited, Pritesh Yashwantlal Shah and Dimple Priteshkumar Shah.

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Yasons Chemex IPO: Financials

Yasons Chemex IPO: Salient Points

• Promoters holding is 83.03% at present and shall get diluted to 61.17%.
• Yasons Chemex Care Ltd. is a subsidiary of BSE listed Yash Chemex Ltd.
• The promoters company has a decent record of giving return to shareholders. yash chemex ltd’s name was among best performers in bse sme in the past in 2018.
• For the year period ended on March 31, 2023 and for the financial year ended March 31, 2022 top ten customers accounted for approximately 50.56% and 56.12% respectively of total revenue from operations
• Company intends to utilize the Net Proceeds as follows:

• Company has availed loans from Axis Bank Limited, Kotak Mahindra Bank and SIDBI.
• Its PE ratio is 22x (fy23 earnings).
• I may apply in Yasons Chemex IPO subject to availability of funds even as it carries good amount of risk.
• GMP as reported on social media has been around Rs. 10. It could move either way and may fizzle out by time of listing.
• Fedex Securities Pvt. Ltd. is the sole lead manager has an average record having managed issues like Kesar India Limited, Lead Reclaim and Rubber Products, Moxsh Overseas Educon Limited, Tapi Fruit Processing Ltd, Virtuoso Optoelectronics Limited, Le Merite Exports Limited etc.
• Nikunj Stock Brokers Ltd. is the market maker for the company. It has a mixed record having been the marlket maker in IPO like Drone Destination, Alphalogic Industries, Urban Enviro Waste Management, ITCONS E-Solutions, SVJ Enterprises, Arham Technologies, AMBO Agritec, All E Technologies, Amanaya Venture etc.
• SME IPO are quite illiquid and volatile and exit options sometimes is delayed.

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. 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.