SME IPO: Indian Emulsifier files draft papers for IPO with NSE

Indian Emulsifier

Indian Emulsifier Ltd has filed the draft red herring prospectus (DRHP) with NSE for raising funds through a public offer, and will issue up to 35,00,000 fresh equity shares.

The shares will be issued at a price band of around Rs 115-128 per share, sources told Moneycontrol.  At the upper price band, the company will be raising Rs 44.80 crore.

The book-running lead manager for the issue is Ekadrisht Capital.

GJNX ventures backed by Gunavanthkumar Vaid, widely known for his preference for SME and small cap companies, features in the list of investors with 1.80 percent shareholding in the company at the time of filing the draft red herring prospectus.

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About Indian Emulsifier:

Indian Emulsifier is a  leading manufacturer in the specialty chemical industry, with a focus on Esters, Phosphate Esters, Imidazolines, Succinimides, Sulfosuccinates, Specialty Emulsifiers and formulated products. Indian Emulsifier 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.

Indian Emulsifier was incorporated in 2020.  The company has its manufacturing plant in Ratnagiri, Maharashtra, and 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.

Yash Tikekar is the promoter of the company.

Objectives of the issue:

As per the prospectus, the net proceeds will be utilised to fund the capital expenditure requirements of the company towards Plant & Machinery, Civil work, and installation costs thereon. The acquisition of advanced machinery is particularly geared towards catering to the additional demand expected from the forthcoming sales efforts.

Financials:
The revenue from operations as per the filing details for the period December 2023 is Rs 48.67 crore while for the period ending March 2023 it stands at Rs 41.17 crore. EBITDA stands at Rs 11.20 crore for the period ending December 2023 with EBITDA margins at 22.99 percent. For the period ending March 2023 the EBITDA is reported at Rs 7.86 crore with EBITDA margins at 19.09 percent. PAT is reported at 6.75 crore reflecting 13.87 percent margins for December 2023 and for March 2023 PAT is declared at Rs 3.89 crore with 9.46 percent net profit margins.

The revenue break up for Indian Emulsifier, industry-wise is Mining – 27.02 percent, Personal Care -24.02 percent, PVC Rubber – 20.99 percent, Textile – 13.99 percent, Cleaning – 7 percent, and other industries – 6.98 percent.

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