Unpacking the Phytochem Remedies (India) Ltd. SME IPO on Publiclisting.in
The Indian capital markets continue to buzz with activity, and the SME segment is proving to be a vibrant space for growth-oriented companies. Phytochem Remedies (India) Ltd. is hitting the market with a Fixed Price IPO, aiming to raise capital for expansion and debt reduction. For retail and HNI investors looking to understand the nuances of this offering, a detailed analysis is essential. This post breaks down everything you need to know about this upcoming BSE SME listing.
Company Snapshot: What Phytochem Remedies Does
Established in 2002, Phytochem Remedies (India) Limited is a focused manufacturer based in Jammu. The company specializes in creating corrugated board solutions and corrugated boxes, which are vital packaging components for several key industries.
Core Business and Product Portfolio
The company serves a diverse clientele across sectors like:
- Food & Beverages
- Fast-Moving Consumer Goods (FMCG)
- Pharmaceuticals
- Pesticides
- Automotive
Their primary products include:
- Corrugated Boxes (available in 3-Ply, 5-Ply, & 7-Ply structures)
- Printed Corrugated Boxes
- Corrugated Rolls, Pads, and Sheets
The manufacturing operations are spread across two units in Bari Brahmana, Jammu, indicating a physical infrastructure backbone ready to support future growth.
Key Strengths Driving the Business
Understanding the competitive advantages helps gauge the long-term potential of the investment:
- Stable Client Relations: The company boasts long-standing relationships with a reliable customer base.
- Financial Consistency: A proven track record of sustained financial performance and growth trajectory.
- Manufacturing Capabilities: Well-established facilities are positioned for expansion and embracing technological advancements with a focus on sustainability.
- Product Diversification: A wide range of packaging products suitable for numerous industry applications provides resilience.
Phytochem Remedies IPO: The Crucial Details
This is a Fixed Price Issue, meaning the price per share is set rather than determined through bidding.
IPO Summary Table
| Attribute | Detail |
|---|---|
| Issue Type | Fixed Price IPO (Fresh Issue) |
| Total Issue Size | ₹38.22 Crores (39.00 Lakh Shares) |
| Face Value | ₹10 per share |
| Issue Price | ₹98.00 per share |
| Listing Exchange | BSE SME |
| Pre-IPO Market Cap | ₹115.39 Crores |
Tentative IPO Timeline and Schedule
Investors must note these dates carefully for application deadlines and allotment tracking:
| Milestone | Tentative Date |
|---|---|
| IPO Opens | Thursday, December 18, 2025 |
| IPO Closes | Monday, December 22, 2025 |
| Allotment Finalization | Tuesday, December 23, 2025 |
| Initiation of Refunds | Wednesday, December 24, 2025 |
| Credit of Shares to Demat | Wednesday, December 24, 2025 |
| Tentative Listing Date | Friday, December 26, 2025 |
Note on Application: The cut-off time for confirming UPI mandates is 5 PM on the closing day, Monday, December 22, 2025.
Investment Lot Size and Retail Limits
For retail participation, the investment structure is strictly defined:
| Investor Category | Minimum Lots | Shares Applied | Minimum Investment Amount (Upper Price) |
|---|---|---|---|
| Individual investors (Retail) | 2 Lots | 2,400 | ₹2,35,200.00 |
| HNI (Minimum Bid) | 3 Lots | 3,600 | ₹3,52,800.00 |
The minimum application size requires an outlay of ₹2,35,200 for retail investors.
Share Allocation Structure
The total 39,00,000 shares are distributed across different investor pools:
| Investor Category | Shares Offered | Percentage Allocation |
|---|---|---|
| Market Maker | 1,96,800 | 5.05% |
| NII (HNI) | 18,51,600 | 47.48% |
| Retail Individual Investors (RII) | 18,51,600 | 47.48% |
| Total Offered | 39,00,000 | 100.00% |
Financial Health and Performance Indicators
Examining the recent financial trends reveals the company's performance leading up to the IPO.
Revenue and Profit Growth Analysis
Between the fiscal year ending March 31, 2024, and March 31, 2025, the company demonstrated significant acceleration, with revenue growing by 12% and Profit After Tax (PAT) witnessing a substantial rise of 94%.
Restated Financial Snapshot (Amounts in ₹ Crore)
| Metric | 30 Sep 2025 (Interim) | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Total Income | 25.01 | 36.81 | 32.90 | 20.83 |
| Profit After Tax (PAT) | 3.75 | 4.48 | 2.31 | 0.82 |
| Total Borrowing | 19.32 | 18.69 | 21.02 | 20.30 |
Key Operational Metrics (As of Mar 31, 2025)
These ratios offer insights into efficiency and leverage:
| Key Performance Indicator (KPI) | Value |
|---|---|
| Return on Equity (ROE) | 34.07% |
| Return on Capital Employed (ROCE) | 25.29% |
| Debt/Equity Ratio | 1.42 |
| PAT Margin | 12.25% |
| EBITDA Margin | 23.78% |
| Price to Book Value | 2.35 |
Earnings Per Share (EPS) and Valuation Change
| Valuation Metric | Pre-IPO EPS (Rs) | Post-IPO EPS (Rs) |
|---|---|---|
| EPS | 5.68 | 6.38 |
| P/E Ratio (x) | 17.24 | 15.37 |
Capital Structure and Promoter Background
Shareholding Transition
The IPO involves a significant dilution of the promoter stake as new shares are being issued:
- Promoter Holding Pre-Issue: 100.00%
- Promoter Holding Post-Issue: 66.88%
The promoters guiding the company are Aditi Bohra, Bohra Agrifilms Private Limited, Niranjan Surana, and Shilpa Surana.
IPO Proceeds Utilization Plan
The primary objective of raising ₹38.22 Crores is earmarked for tangible business improvement and financial strengthening:
| Objective of the Issue | Estimated Amount (₹ in Cr.) |
|---|---|
| Funding Capital Expenditure (Equipment/Machinery Purchase) | 13.60 |
| Funding Capital Expenditure (Civil Construction) | 5.88 |
| Repayment/Pre-payment of Borrowings | 9.37 |
| General Corporate Purposes | 5.64 |
Key Intermediaries for the IPO
The successful execution of the IPO relies on experienced partners:
- Book Running Lead Manager (BRLM): Mefcom Capital Markets Ltd.
- Registrar to the Issue: Bigshare Services Pvt.Ltd. (Contact: +91-22-6263 8200, ipo@bigshareonline.com)
- Market Maker: Aftertrade Broking Pvt.Ltd. (Responsible for maintaining post-listing liquidity)
SWOT Analysis for Phytochem Remedies
A balanced view requires assessing internal strengths and weaknesses against external opportunities and threats.
Strengths (Internal Positive)
- Strong, established customer relationships.
- Demonstrable growth in PAT recently.
- Diversified product portfolio across multiple sectors.
Weaknesses (Internal Negative)
- Relatively high Debt/Equity ratio (1.42 as of Mar 2025).
- Significant promoter dilution post-IPO (from 100% to 66.88%).
- Reliance on fixed pricing mechanism in a typically variable SME IPO market.
Opportunities (External Positive)
- Growing demand for organized packaging solutions across industries.
- Capital infusion targeted towards capacity expansion (CapEx).
- Potential benefits from expanding the BSE SME listing segment.
Threats (External Negative)
- Intense competition within the packaging sector.
- Fluctuations in raw material costs impacting margins.
- Slower than expected utilization of new capital expenditure.
Guidance for Investors Applying to the IPO
For those looking to participate in the Phytochem Remedies IPO, the process is streamlined through standard market mechanisms. Investors typically use either the UPI-based application method via their broker or the ASBA facility through their net banking portal.
When applying, ensure your broker supports BSE SME applications. If utilizing UPI, confirm the mandate authorization promptly before the cut-off time. Given the fixed price, assessing the IPO valuation against peers and historical performance, as detailed above, forms the core of the investment decision.
Subscription status updates closer to the closing date will provide a crucial indicator of market sentiment towards this offering.