Gujarat Polysol Chemicals IPO

Gujarat Polysol Chemicals limited is one of India’s top chemical makers for the construction, agriculture, dyes, and leather industries. Gujarat Polysol Chemicals IPO will hit the stock market in August 2022.

About Gujarat Polysol Chemicals

In India, they are a leading provider of dispersion agents to the infra-tech, dye and pigments, textile and leather sectors, as well as a leading supplier of powder surfactants. Surfactants / wetting chemicals are dispersing agents that are put to a suspension of solid or liquid particles in a liquid (such as a colloid or emulsion) to promote particle separation.

They are bound onto the particles’ surfaces, forming a thin layer that covers the whole surface. They minimise particle interactions and re-agglomeration by adsorbing on freshly formed surfaces.

In India, they are one of the top producers of poly carboxylate ether liquid. They are one of the few PCE powder manufacturers in the world & the only PCE powder producer in India.

Production Plants

The basis chemicals in the vast majority of their products are aromatic organic compounds such as naphthalene, phenol (carbolic acid), acrylic acid, and PEG.

Gujarat Polysol Chemicals limited produced 130 goods (in liquid and powder forms) in the six months ending September 30, 2021, including sulphonated naphthalene formaldehyde, sulphonated melamine formaldehyde, sulphonated acetone formaldehyde, cellulose nanofibers, alkyl aryl sulphonate, and acrylic syntans.

They create customised items that are tailored to the needs of their clients. Their company has three manufacturing facilities: two in Gujarat’s Vapi and Sarigam, and one in the Union Territories of Dadra and Nagar Haveli and Daman and Diu.

Gujarat Polysol Chemicals limited’s three manufacturing facilities have a total manufacturing capacity of 130,400 MT per year.

Clients

Their Customers are mostly operational in the Application Industries. Their customer-centric approach, they believe, is one of the primary aspects that sets them apart from their competition.

This method has not only helped them build their business over time, but it has also helped them establish themselves in the industry. Their client-centric approach has paid off, as seen by their high customer acquisition and retention rates.

They catered to between 596 and 721 consumers in the three preceding fiscal years and the six-month period ending September 30, 2021, and they catered to 829 people in the eleven months ending February 28, 2022, of which roughly 400 were repeat customers. Customers with operations all around India are catered to by them.

Gujarat Polysol Chemicals IPO

Gujarat Polysol Chemicals Limited, headquartered in Kerala has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 414 Crore on 26 March 2022.

The offer includes a fresh issue of 87 Crore and there is offer for sale (OFS) of 327 Crore by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	314.57	314.48	266.49	273.54
Total Revenue	183.22	380.43	440.94	439.80
loss After Tax	15.52	39.84	20.19	12.80

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	20.98	19.77	3
Financial Year 2020	15.30	10.02	2
Financial Year 2019	9.77	6.38	1
Weighted Average	17.21	14.29
30 Sep. 2021	7.70	7.70

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors and business strengths enable them to compete successfully in the industry, and that these factors and strengths will be used to calculate the Offer Price:

1. Customer base is strong and diverse.
2. Leading chemical company with a vast and diverse product line
3. R&D is given a lot of attention.
4. Extensive product manufacturing capabilities with strict quality standards and procedures.
5. Promoters with a lot of clout and a management team with a lot of experience.
6. Financial performance that is constant and strong.

Gujarat Polysol Chemicals Peer Comparison

S. No.	Face Value	Company Name	PE
1	1	Himadri Speciality Chemicals Limited	36.86
1	10	BASF India Limited	16.21

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E Ratio was calculated using the closing market price of equity shares on www.nseindia.com on March 31, 2021, divided by the Diluted EPS as of March 31, 2021.

Gujarat Polysol Chemicals IPO Details

IPO Opening Date	August 2022
IPO Closing Date	August 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	414.00 Crore
Fresh Issue	87 Crore
Offer for Sale	327 Crore

Gujarat Polysol Chemicals IPO Date

Gujarat Polysol Chemicals Limited IPO opening date is August 2022, and the closing date is August 2022. The Gujarat Polysol Chemicals issue may list in August 2022.

IPO Opening Date	August 2022
IPO Closing Date	August 2022
Basis of Allotment Date	August 2022
Initiation of Refunds	August 2022
Credit of Shares to Demat Account	August 2022
IPO Listing Date	August 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Gujarat Polysol Chemicals Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Gujarat Polysol Chemicals IPO.

Gujarat Polysol Chemicals IPO GMP

Gujarat Polysol Chemicals Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
August 2022
August 2022
August 2022
August 2022
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August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Gujarat Polysol Chemicals Limited IPO Review

Gujarat Polysol Chemicals Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Gujarat Polysol Chemicals IPO is good or bad.

Gujarat Polysol Chemicals Limited IPO Risk

• They are dependant on a small number of customers and rely on them for a major portion of their revenue.
• Their success is based on long-term relationships with their customers & they rarely enter into long-term purchasing agreements.
• Failure to achieve the quality requirements by their clients for their products and procedures could result in the cancellation of current and future orders, as well as financial liabilities.
• Their production process uses toxic and combustible industrial chemicals, which poses substantial hazards and may result in increased compliance duties.
• Because a major portion of their raw materials are supplied from international vendors, adverse currency fluctuations or Any restrictions on obtaining raw materials from specific nations could raise overall operating costs of the company.

Other Threats

1. Their operations are highly reliant on Application Industries, which are in turn reliant on India’s macro and microeconomic conditions.
2. They have accumulated enormous debt, which exposes them to a variety of dangers that could harm their firm.
3. The conditions and restrictions imposed on them by the agreements controlling their debt could have a negative impact on their capacity to run their firm.
4. They work in a highly competitive field. Any inability to compete effectively could result in a reduction in market share or operational profitability.
5. Their ability to maximise their manufacturing capacities will determine their success and financial situation.
6. COVID-19, or any other major infectious disease outbreak, might have a negative impact on their business, financial situation, and operating results.

Leadership in chemical production

They are one of India’s leading chemical producers for the infrastructure, agrochemical, dyes, and leather industries.
In addition, they are one of India’s leading manufacturers of PCE liquid.

They are one of the few PCE powder manufacturers in the world, and the only PCE powder manufacturer in India.For more than three decades, they’ve been producing a wide range of chemical products. One of their strengths, they believe, is that they have consistently expanded their product offerings.

They created different chemical formulations leading in a product array ranging from 130 to 202 products over the immediately preceding three fiscal years and the six months ended September 30, 2021. They are still able to produce any or all of these goods.

 

Gujarat Polysol Chemicals Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Gujarat Polysol Chemicals IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Gujarat Polysol Chemicals Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
August 2022	1
August 2022	2
August 2022	3

Gujarat Polysol Chemicals Management

Their business has flourished thanks to the efforts of their Promoters. Their promoters have extensive chemical industry experience. Shaileshkumar Balvantrai Desai & Umang Shailesh Desai have worked in the chemical sector for almost 30 years and 10 years, respectively.

Their promoters are actively involved in the company’s day-to-day activities. One of their Promoters, Umang Shailesh Desai, and Bhavisha Shaileshbhai Desai, a part of their Promoter Group, who are both full-time directors, are carrying on the heritage of their father, Shaileshkumar Balvantrai Desai, and have worked in the industry to refine their abilities over the years.

Their knowledge in the sector allows them to anticipate and innovate, manage and grow their operations, maintain and utilise supplier relationships, & respond to changing client demands.

Promoters

• Shaileshkumar Balvantrai Desai
• Umang Shailesh Desai

Promoter’s Holding

Pre Issue Share Holding	83.39%
Post Issue Share Holding

Gujarat Polysol Chemicals Limited Prospectus