Unveiling Renol Polychem Limited's Public Offering
Your Comprehensive Guide to the Upcoming SME IPO
The Indian equity market continues to be a vibrant landscape for investors, with Initial Public Offerings (IPOs) often capturing significant attention. As the market evolves, the Small and Medium Enterprises (SME) segment has emerged as a promising avenue for growth, bringing forth unique opportunities. One such upcoming offering that has garnered interest is the Renol Polychem Limited IPO. This blog post delves into the specifics of this offering, providing a detailed analysis to help you make informed decisions.
About Renol Polychem Limited: A Deep Dive into the Company
Established in 2008, Renol Polychem Limited has carved a niche for itself as a manufacturer and supplier of diverse chemical and polymer solutions. The company specializes in producing colour masterbatches, plastic masterbatches, industrial chemicals, impact modifiers, and plastic pigments, among other products.
Product Portfolio Highlights:
- Colour Masterbatches: Offering a wide spectrum of shades including green, red, yellow, orange, pink, blue, brown, violet, ivory, white, maroon, silver, multicolor, and black. These are meticulously formulated for various applications such as plastic moulding, extrusion, and film production.
- Filler Masterbatches: Providing transparent plastic filler masterbatches, primarily based on Talc and Calcium Carbonate. These are designed to enhance cost efficiency and improve the mechanical properties of plastic products.
- Additive Masterbatches: A comprehensive range including UV Stabilizers, Antioxidants, Slip & Anti-block Agents, and Flame Retardants, crucial for improving product performance and durability.
- Polymer Compounds & Pigments: High-performance plastic pigments and polymer modifiers aimed at boosting strength, flexibility, and overall durability of plastic materials.
Renol Polychem's offerings find extensive applications across various industries, including plastic packaging (both flexible and rigid), automotive components, household and consumer goods, electrical and electronics, textiles and fibers, and agricultural films and pipes. The company reportedly employs 15 individuals across different departments as of September 30, 2024.
Core Strengths of the Company:
- Experienced and proficient management team.
- A broad and diversified product range that caters to a wide customer base.
- Strong, established relationships with customers and vendors.
- Modern and well-equipped manufacturing facilities.
Renol Polychem IPO at a Glance: Key Details
The Renol Polychem IPO is a book-built issue aiming to raise ₹25.77 crores entirely through a fresh issuance of 24.54 lakh shares. Below are the essential details of this SME IPO:
| Detail | Description |
|---|---|
| IPO Type | SME IPO (Book Building Issue) |
| Issue Price Band | ₹100 to ₹105 per share |
| Face Value | ₹10 per share |
| Total Issue Size | 24,54,000 shares (aggregating up to ₹25.77 Cr) |
| Sale Type | Fresh Capital Issue |
| Listing Exchange | NSE SME |
| Book Running Lead Manager | Corporate Makers Capital Ltd. |
| Issue Registrar | Skyline Financial Services Private Ltd |
| Market Maker | Asnani Stock Broker Private Limited |
IPO Timeline: Important Dates for Investors
Mark your calendars for these crucial dates related to the Renol Polychem IPO:
*All dates are tentative and subject to change.
Issue Allocation and Investment Requirements
The IPO has specific reservations for different investor categories, ensuring broad participation. The minimum and maximum investment amounts vary based on investor type.
Issue Allocation Breakdown:
| Investor Category | Shares Offered | Percentage of Total Issue |
|---|---|---|
| Market Maker Shares | 1,48,800 | 6.06% |
| Qualified Institutional Buyers (QIB) | 6,40,800 | - |
| Non-Institutional Investors (NII / HNI) | 3,49,200 | 14.23% |
| Retail Individual Investors (RII) | 13,15,200 | 53.59% |
| Total Shares Offered | 24,54,000 | 100.00% |
Lot Size and Application Details:
Investors can bid for a minimum of 1,200 shares. The application lot size is fixed at 1,200 shares. Here's a breakdown of the minimum and maximum investment for individual retail investors and HNIs:
| Investor Category | Minimum Lots | Shares per Lot | Minimum Shares | Maximum Shares | Minimum Amount (at higher price band) | Maximum Amount (at higher price band) |
|---|---|---|---|---|---|---|
| Individual Retail Investor | 2 | 1,200 | 2,400 | 2,400 | ₹2,52,000 | ₹2,52,000 |
| Small HNI (S-HNI) | 3 | 1,200 | 3,600 | 8,400 | ₹3,78,000 | ₹8,82,000 |
| Big HNI (B-HNI) | 8 | 1,200 | 9,600 | - | ₹10,08,000 | - |
Company Financial Performance Snapshot
Renol Polychem Limited has demonstrated robust financial growth in recent periods. A glance at their restated financial information reveals significant increases in revenue and profitability.
Financial Highlights (Amounts in ₹ Crore):
| Period Ended | May 31, 2025 | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|---|---|
| Assets | 25.86 | 23.41 | 15.49 | 10.28 |
| Revenue | 12.02 | 62.56 | 6.52 | 41.86 |
| Profit After Tax (PAT) | 1.14 | 5.00 | 1.53 | 0.73 |
| EBITDA | 1.60 | 7.07 | 2.18 | 1.14 |
| Net Worth | 14.47 | 13.33 | 8.69 | 2.71 |
| Total Borrowing | 5.28 | 6.95 | 2.58 | 5.36 |
Notably, between the financial year ending March 31, 2024, and March 31, 2025, the company's revenue surged by an impressive 859%, and its Profit After Tax (PAT) saw a substantial increase of 226%.
Key Performance Indicators (KPIs) as of March 31, 2025:
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 45.37% |
| Return on Capital Employed (ROCE) | 64.18% |
| Debt/Equity Ratio | 0.52 |
| Return on Net Worth (RoNW) | 45.37% |
| PAT Margin | 8.02% |
| EBITDA Margin | 11.36% |
| Price to Book Value | 4.32 |
| Market Capitalization | ₹83.41 Cr |
Earnings and Valuation Metrics:
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| Earnings Per Share (EPS) | ₹9.10 | ₹8.62 |
| Price to Earnings (P/E) Ratio | 11.54x | 12.18x |
*Note: Pre-IPO EPS is calculated based on pre-issue shareholding and latest FY earnings (Mar 31, 2025). Post-IPO EPS is based on post-issue shareholding and annualized FY earnings (May 31, 2025).
Promoter Group and Shareholding
The promoters of Renol Polychem Limited are Mr. Bhaveshbhai Mansukhbhai Harsoda and Mr. Naitik Bhaveshbhai Harshoda. Their commitment to the company is reflected in their significant shareholding:
| Shareholding | Percentage |
|---|---|
| Pre-Issue Shareholding | 99.99% |
| Post-Issue Shareholding | 69.11% |
Purpose of the Public Offering
The net proceeds from this IPO are earmarked for strategic initiatives to fuel the company's growth and strengthen its financial position. The primary objectives are:
- Capital Expenditure: Investment in purchasing new machinery to enhance production capabilities and efficiency. (Expected amount: ₹56 Million)
- Debt Repayment: Partial repayment of existing borrowings to optimize the company's capital structure. (Expected amount: ₹10 Million)
- Working Capital Needs: To meet the ongoing operational and working capital requirements. (Expected amount: ₹151.5 Million)
- General Corporate Purposes: Allocation for various general business operations and future strategic initiatives.
SWOT Analysis of Renol Polychem Limited
A balanced perspective is crucial for any investment decision. Here’s a brief SWOT analysis for Renol Polychem Limited:
Strengths:
- Experienced Leadership: A seasoned management team provides stability and strategic direction.
- Diverse Product Range: Caters to multiple industries, reducing dependence on a single sector and offering varied revenue streams.
- Established Infrastructure: Existing manufacturing facilities and strong relationships with stakeholders provide a solid operational foundation.
- Strong Financial Growth: Recent impressive revenue and PAT growth figures indicate operational efficiency and market acceptance.
Weaknesses:
- SME Market Risks: Being an SME, it might face higher volatility and lower liquidity compared to mainboard listings.
- Competition: Operates in a competitive market with both organized and unorganized players.
- Employee Base: A relatively small team (15 employees) might limit scalability or specialized functions compared to larger counterparts.
Opportunities:
- Expanding End-Use Industries: Growth in sectors like plastic packaging, automotive, and consumer goods directly translates to increased demand for Renol Polychem's products.
- Technological Advancements: Scope for adopting advanced manufacturing processes and R&D to develop innovative products.
- Market Share Expansion: With a strong product portfolio and growth objectives, there's potential to capture a larger market share.
Threats:
- Raw Material Price Volatility: Fluctuations in the cost of polymers and chemicals can impact profitability.
- Economic Downturn: A slowdown in the overall economy or specific industrial sectors could reduce demand for their products.
- Regulatory Changes: Evolving environmental regulations on plastic production and chemical usage could necessitate significant operational adjustments.
- Intense Competition: Existing and new players can intensify competitive pressures, affecting pricing and market position.
Navigating the Application Process
Applying for an IPO has become increasingly streamlined. You can typically apply online using either the UPI (Unified Payments Interface) or ASBA (Application Supported by Blocked Amount) payment methods.
General Steps for Online IPO Application:
- Through Brokerage Platforms: Many popular stockbrokers allow you to apply for IPOs directly through their online platforms (e.g., their website or mobile app). Log in to your trading account, navigate to the IPO section, select the desired IPO, enter your UPI ID or bank details, specify the bid quantity and price, and submit.
- Via Net Banking (ASBA): If your bank supports ASBA, you can apply directly through your net banking portal. Log in, find the "IPO" or "e-IPO" section, choose the IPO, fill in the required details, and authorize the payment.
- UPI Mandate: For UPI applications, ensure you approve the payment mandate request that appears on your UPI app (like Google Pay, PhonePe, BHIM) before the mandate confirmation cut-off time.
Contact Information and Registrar Details
For any inquiries regarding the company or the IPO process, you can reach out to the following:
Renol Polychem Ltd. Contact Information:
Address: 307, Sanskar Heights NR RA Circle 150 FT Ring RD, Mavdi, Rajkot, Gujarat, 360004
Phone: +91- 9723780726
Email: compliance@renolpolychem.com
Website: https://www.renolpolychem.com/
IPO Registrar Details:
Registrar: Skyline Financial Services Private Ltd
Phone: 02228511022
Email: ipo@skylinerta.com
Website: https://www.skylinerta.com/ipo.php
Conclusion: Is This Opportunity Right for You?
Renol Polychem Limited's upcoming SME IPO presents an opportunity to participate in the growth story of a company specializing in essential chemical and polymer solutions for diverse industries. With a strong track record of financial growth, experienced promoters, and clear objectives for the IPO proceeds, it offers a compelling case for consideration.
However, like all investments, it comes with inherent risks, particularly those associated with the SME segment and industry-specific factors. Prospective investors are advised to conduct their own thorough due diligence, review the detailed offer documents (DRHP/RHP), and consider their individual financial goals and risk tolerance before making an investment decision. Staying informed about the latest developments and subscription trends will also be beneficial.