Unilex Colours and Chemicals Limited
Unilex Colours and Chemicals Limited(UNILEX)
Total Shares
36,00,000
Issue Size
₹31.32 Cr
Price Band
₹82 – ₹87
Lot Size
1600 shares
Min. Investment
₹1,39,200
Max. Investment
₹1,39,200
Open Date
25 Sep, 2024
Close Date
27 Sep, 2024
Allotment
30 Sep, 2024
Listing
03 Oct, 2024
Max. Investment
₹1,39,200
Announced
25 Sep, 2024
Opening Date
25 Sep, 2024
Closing Date
27 Sep, 2024
Basis of Allotment
30 Sep, 2024
Initiation of Refunds
01 Oct, 2024
Credit of Shares
01 Oct, 2024
Listing Date
03 Oct, 2024
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About Unilex Colours and Chemicals Limited IPO
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 both domestic and international markets. They provide a wide range of pigment solutions for various industries.
The company's manufacturing unit in Palghar, Maharashtra spans 1275 sq. meters and is equipped with various machines including Ball Mill, Root Blo
Unilex Colours and Chemicals Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 35.9% increase in shares
Unilex Colours and Chemicals Limited IPO Financials Health
Unilex Colours and Chemicals Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1600 | ₹1,39,200 |
| Retail Maximum | 1 | 1600 | ₹1,39,200 |
| HNI Minimum | 2 | 3200 | ₹2,78,400 |
(All values in CR)
Unilex Colours and Chemicals Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.59 |
| EPS Post IPO | 4.53 |
| EPS Pre IPO | 6.16 |
| P/E Post IPO | 19.21 |
| P/E Pre IPO | 14.13 |
| PAT Margin (%) | 4.29 |
| ROCE | 6.32% |
| ROE | 17.93% |
| RoNW | 16.73% |
(All values in CR)
Strength & Risk of Unilex Colours and Chemicals Limited IPO
1. Long standing relationships with diversified customers across geographies.
2. We offer a diversified range of products.
3. Catering to wide range of industries.
4. Experienced Promoters and Directors with strong management team having domain knowledge.
5. Research and development capabilities allowing product innovation and customization.
1. A significant portion of its revenue is generated from sales of the company top five products. The loss of customers who purchase these products, or a significant reduction in the production and sales of, or demand for said products may adversely affect its business, financial condition, results of operations and prospects.
2. The company is dependent upon third parties for trading and supply of the products its sell, with whom the company may not had long term contracts or exclusive supply arrangements. Any delay or failures on the part of such vendors to deliver products, may adversely affect its business, profitability and reputation.
3. Its business is dependent and will continue to depend on the company's manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
4. The company derives a significant part of its revenue from major customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, the company's business, financial position and results of operations may be adversely affected.
5. There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Some of its corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
6. The company is heavily reliant on a limited number of suppliers for raw materials, coupled with the absence of long-term agreements, exposes it to significant risks of supply disruptions, price fluctuations, and quality issues, which could adversely affect its business operations, financial condition, and results of operations.
7. The company reliance on certain industries for a significant portion of its sales could have an adverse effect on the company's business.
8. The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
9. The company is exposed to foreign currency fluctuations risks, particularly in relation to export of products, which may adversely affect its results of operations, financial condition and cash flows.
10. The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
Unilex Colours and Chemicals Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| HNI | 60.99 | 5,12,000 | 3,12,27,200 | 271.68 |
| Market Maker | 1.00 | 1,92,000 | 1,92,000 | 1.67 |
| QIB | 6.24 | 17,02,400 | 1,06,20,800 | 92.4 |
| Retail | 34.37 | 11,93,600 | 4,10,27,200 | 356.94 |
| Total | 24.32 | 34,08,000 | 8,28,75,200 | 721.01 |
Unilex Colours and Chemicals Limited IPO GMP
Last updated 21 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 21 Sep, 2024 | 87 | ₹0 | -- | ₹87 (0.00%) | - | 21 Sep, 2024 |
| 23 Sep, 2024 | 87 | ₹0 | -- | ₹87 (0.00%) | - | 23 Sep, 2024 |
| 24 Sep, 2024 | 87 | ₹0 | -- | ₹87 (0.00%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 87 | ₹0▼ | -- | ₹87 (0.00%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 87 | ₹13 | 15800 | ₹100 (14.94%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 87 | ₹13▲ | 15800 | ₹100 (14.94%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 87 | ₹11 | 13400 | ₹98 (12.64%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 87 | ₹11▲ | 13400 | ₹98 (12.64%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 87 | ₹4 | 4900 | ₹91 (4.60%) | - | 03 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Unilex Colours and Chemicals Limited IPO
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Unilex Colours and Chemicals Limited IPO
The Initial Public Offering (IPO) of Unilex Colours and Chemicals Limited is a critical event for both the company and potential investors. The company, established in the early 2000s, is engaged in the manufacturing and export of pigments and other related chemicals. With this IPO, Unilex is looking to raise funds to fuel expansion and enhance its operational capacity.
Key Details of the Unilex Colours and Chemicals IPO
- Company: Unilex Colours and Chemicals Limited
- IPO Size: Fresh issue of up to 36,00,000 equity shares of ?10 each
- Promoters: Purushottam Brijlal Sharma, Narendra Parameswarappa Kotehall, Aditya Sharma, and others
- Listing: The shares are proposed to be listed on the NSE Emerge (SME Platform).
- Book Running Lead Manager: Hem Securities Limited
- Registrar: Link Intime India Private Limited
Purpose of the IPO
The company plans to utilize the IPO proceeds for the following objectives:
- Capital Expenditure: Investment in new machinery and technological upgrades to enhance production capacity.
- Working Capital Requirements: Strengthen the company's financial position and support daily operations.
- General Corporate Purposes: This includes covering various business expenses and operational improvements.
Financial Overview
Unilex has demonstrated consistent growth over the past years, driven by strong demand for its chemical products. However, financial volatility and operational risks in the chemical industry may pose challenges.
Industry Overview
The chemicals and pigments sector is vital for a wide range of industries, including textiles, plastics, and packaging. As one of the key players in this sector, Unilex stands to benefit from increasing global demand, particularly for specialized pigments and dyes.
Pros of Unilex Colours and Chemicals IPO
- Industry Growth Potential: The global demand for chemicals and pigments is rising, creating opportunities for Unilex to expand its footprint.
- Expansion Plans: The capital raised will allow the company to invest in modernizing its production processes, potentially improving efficiency and output.
- Strong Export Market: Unilex is positioned as a key exporter of pigments, which gives it access to international markets, particularly in emerging economies.
- Experienced Management: The company is led by a team of experienced promoters, ensuring steady leadership and strategic decision-making.
Cons of Unilex Colours and Chemicals IPO
- Volatile Industry: The chemicals sector is subject to frequent changes in raw material prices, environmental regulations, and export-import tariffs, which can affect profitability.
- Dependency on Key Clients: A significant portion of the company’s revenue comes from a few key clients, making it vulnerable to shifts in their buying behavior.
- SME Platform Listing: As Unilex will list on NSE Emerge (SME platform), liquidity and trading volumes may be limited compared to main-board listings.
- Competitive Market: The chemical industry is highly competitive, with both domestic and international players, which could impact growth potential.
Risk Factors
General Risks
Investing in IPOs involves risk, especially in volatile industries like chemicals. Investors should consider their risk tolerance before making any commitments.
Company-Specific Risks
- Regulatory Risk: The chemical sector is heavily regulated, and changes in laws can affect operations, particularly environmental compliance.
- Operational Risk: Any delays or mismanagement in utilizing the proceeds could affect the company's future growth and profitability.
Conclusion
The Unilex Colours and Chemicals IPO presents an opportunity for investors to tap into a growing chemical manufacturing company with solid expansion plans. However, like any investment, this IPO comes with risks related to industry volatility and competition. Investors should assess these factors carefully before participating.
FAQs About Unilex Colours And Chemicals Limited Ipo
Unilex Colours and Chemicals Limited IPO will open on 25 Sep, 2024 and close on 27 Sep, 2024. Investors must apply within this period to participate.
The Unilex Colours and Chemicals Limited IPO price band is set between ₹82.00 and ₹87.00 per share. The minimum lot size is 1600, requiring an investment of at least ₹139200.00.
The Unilex Colours and Chemicals Limited IPO shares are expected to be listed on 03 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Unilex Colours and Chemicals Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Unilex Colours and Chemicals Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.