Patel Chem Specialities IPO will open for public subscription from 25 July 2025 to 29 July 2025. The company plans to raise around ₹58.8 crore through this SME IPO by offering a fresh issue of 70 lakh equity shares. The price band is fixed at ₹82 to ₹84 per share, and the minimum lot size is 1,600 shares, requiring a minimum investment of ₹1.34 lakh.
This article provides complete information about Patel Chem IPO, including important dates, financial performance, business overview, risks, GMP, and review. This is purely informational and not a recommendation to invest.
IN THIS ARTICLE
My Market Observation Experience
I regularly track IPOs and SME listings as part of my financial content journey. Over time, I’ve observed that companies focusing on niche products and strong export markets often show good post-listing performance, especially when backed by solid financials. Patel Chem Specialities falls into that category due to its growth and expansion plans.
About Patel Chem Specialities Ltd
Patel Chem Specialities Ltd is a Gujarat-based company established in 2008. It is engaged in the manufacturing of pharmaceutical excipients and specialty chemicals derived from cellulose and starch. These excipients are used in industries like pharma, food, cosmetics, and nutraceuticals.
The company exports to over 15 countries and holds multiple certifications like ISO, GMP, and US-DMF registration, which gives it credibility in international markets.
| Company Detail | Information |
|---|---|
| Company Name | Patel Chem Specialities Ltd |
| Established | 2008 |
| Headquarters | Gujarat, India |
| Industry | Pharmaceutical Excipients, Specialty Chemicals |
| Exports | 15+ Countries |
| Certifications | ISO, GMP, US-DMF |
Patel Chem Specialities IPO Details
- IPO Open Date: 25 July 2025
- IPO Close Date: 29 July 2025
- Listing on: BSE SME
- Issue Type: Book Built Issue
- Fresh Issue Size: 70,00,000 equity shares
- Issue Amount: ₹58.8 crore (approx)
- Price Band: ₹82 to ₹84 per share
- Face Value: ₹10 per share
- Lot Size: 1,600 shares
- Minimum Investment (Retail): ₹1,34,400
- Allotment Date: 30 July 2025
- Listing Date (Tentative): 1 August 2025
Objectives of the IPO
The company plans to utilize the IPO proceeds for the following:
- Setting up a new manufacturing facility at Indrad, Mehsana
- Working capital requirements
- General corporate purposes
- Meeting public issue expenses
Financial Performance of Patel Chem
The financials of the company show consistent growth in revenue and profit, which is a positive sign for long-term sustainability.
| Financial Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| FY 2021-22 | 42.56 | 2.95 | 4.83 | 11.21 |
| FY 2022-23 | 61.74 | 5.96 | 8.62 | 15.85 |
| FY 2023-24 | 82.36 | 7.66 | 11.28 | 19.52 |
Key observations:
- Revenue has grown nearly 2x in three years
- Net profit margin has improved steadily
- Debt levels remain manageable
- EBITDA growth shows improving operational efficiency
Grey Market Premium (GMP)
As of 24 July 2025, the GMP of Patel Chem IPO is reported to be around ₹18 to ₹20. This indicates a potential listing price of around ₹102 to ₹104, suggesting possible listing gains. However, grey market trends are unofficial and speculative, and investors should not rely solely on GMP.
Strengths of Patel Chem
- Niche expertise in pharmaceutical excipients
- Growing export presence in more than 15 countries
- Certified manufacturing facilities ensuring compliance
- Strong revenue and profit growth
- IPO proceeds directly used for capacity expansion
Risks to Consider
- Heavy dependence on a few clients and suppliers
- No long-term agreements with major buyers
- Price fluctuations in raw materials
- High minimum investment for retail investors (₹1.34 lakh per lot)
- SME IPOs have lower liquidity post-listing compared to mainboard IPOs
Patel Chem IPO Review and Verdict
Based on available data, Patel Chem IPO looks attractive due to its strong financial performance, niche product focus, and global expansion. However, investors should remember this is a BSE SME IPO, which involves different listing rules, higher risk, and lower liquidity than mainboard IPOs.
Retail investors with high-risk appetite and long-term vision may consider it after personal research. Others should wait and watch post-listing performance.
Conclusion
Patel Chem Specialities IPO offers an opportunity to invest in a growing pharmaceutical excipient manufacturing company. With solid financials and global presence, it has the potential for long-term value. However, due to the nature of SME IPOs and high retail investment size, investors must weigh the risks carefully.
Always consult a financial advisor before making investment decisions.
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