Unilex Colours and Chemicals IPO: Key Dates, Price Band & Listing Details

Incorporated in March 2001, Unilex Colours and Chemicals Limited manufactures pigments, trades chemicals, and manufactures food colours. The company markets its products under the registered brand name "Unilex," catering to domestic and international markets. Their manufacturing unit in Palghar, Maharashtra, spans 1275 sq. meters and has various specialised machines. The company's manufacturing facility is certified with ISO 9001:2015 for quality management in producing pigments, food dyes, and drug intermediates. As of 31st March 2024, the company has 25 contract labourers and 54 employees on the payroll at the manufacturing unit.

The Objectives of the Issue

Unilex Colours and Chemicals Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. To Meet Working Capital Requirements
2. Repayment of a portion of certain borrowing availed by the company
3. General Corporate Purpose

Highlights of Unilex Colours and Chemicals IPO

Unilex Colours and Chemicals IPO is set to launch with a book-built issue of ₹31.32 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 25th September 2024 and closes on 27th September 2024.
• The allotment is expected to be finalised on 30th September 2024.
• Refunds will be initiated on 1st October 2024.
• Credit of shares to Demat accounts is also expected on 1st October 2024.
• The company will tentatively list on NSE SME on 3rd October 2024.
• The price band is set at ₹82 to ₹87 per share.
• The fresh issue comprises 36 lakh shares, aggregating to ₹31.32 crores.
• The minimum lot size for the application is 1600 shares.
• Retail investors need to invest a minimum of ₹139,200.
• The minimum investment for HNI is 2 lots (3,200 shares), amounting to ₹278,400.
• Hem Securities Limited is the book-running lead manager for the IPO.
• Link Intime India Private Ltd serves as the registrar.
• Hem Finlease is the market maker for the IPO.

Unilex Colours and Chemicals IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 27th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Unilex Colours and Chemicals IPO Issue Details/Capital History

The Unilex Colours and Chemicals IPO is scheduled from 25th September to 27th September 2024, with a price band of ₹82 to ₹87 per share and a face value of ₹10. The total issue size is 36,00,000 shares, raising up to ₹31.32 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,00,17,000 shares.

Unilex Colours and Chemicals IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 1600 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.
 

SWOT Analysis: Unilex Colours and Chemicals Ltd

Strengths:

• Established brand name "Unilex" in domestic and international markets
• Wide range of pigment solutions for various industries
• ISO 9001:2015 certified manufacturing facility
• Diverse product portfolio with over 100 products
• Strong export presence in multiple countries

Weaknesses:

• Dependence on a single manufacturing facility
• Fluctuating manufacturing revenue contribution

Opportunities:

• Expansion of product portfolio
• Potential for increased market share in existing export markets
• Exploration of new international markets
• Growing demand for specialised pigments and chemicals

Threats:

• Intense competition in the pigments and chemicals industry
• Fluctuations in raw material prices
• Regulatory changes affecting chemical manufacturing
• Economic downturns impacting demand from various industries

Financial Highlights: Unilex Colours and Chemicals Ltd

Unilex Colours and Chemicals Limited has shown moderate growth in recent years. The company's revenue increased by 3%, and profit after tax (PAT) rose by 24% between the financial year ending on 31st March 2024 and 31st March 2023.

Assets have shown significant growth, increasing from ₹7,669.84 lakhs in FY22 to ₹9,068.35 lakhs in FY24, representing a growth of about 18.2% over two years.

Revenue has remained relatively stable, slightly decreasing from ₹15,156.73 lakhs in FY22 to ₹14,932.88 lakhs in FY24, marking a minor decrease of 1.5% over two years.

The company's profitability has improved steadily. Profit After Tax increased from ₹471.17 lakhs in FY22 to ₹616.67 lakhs in FY24, representing a growth of 30.9% over two years.

Net Worth has shown consistent growth, increasing from ₹2,805.98 lakhs in FY22 to ₹3,686 lakhs in FY24, a growth of about 31.4% over two years.

Total Borrowings increased substantially from ₹1,135.09 lakhs in FY22 to ₹2,161.4 lakhs in FY24, representing an increase of about 90.4% over two years. Considering the company's growth strategy and financial management, this significant borrowing increase should be considered.

The company's financial performance shows a trend of stable revenue with improving profitability. The substantial increase in borrowings and growing assets suggests that the company may be in an investment phase. Investors should consider these trends, the company's market position, and future growth prospects when evaluating the IPO.