Patel Chem Specialities Limited IPO (formerly private, converted to public limited company August 2024)
Sector: Specialty chemicals—with a focus on pharmaceutical-grade cellulose excipients and other specialty chemicals, serving global markets including the U.S., Europe, Japan, Korea, Middle East.
Issue Size: ₹58.80 crore (70 lakh fresh equity shares of face value ₹10)
Exchange: BSE SME platform
Patel Chem Specialities is raising ₹58.8 cr via a fresh issuance on BSE SME, targeting increased capacity and export growth. With a clearly defined price band (₹82–84) and timeline (25 Jul–29 Jul 2025), the issue offers exposure to specialty chemical manufacturing with solid financials and global reach.
However, potential investors should weigh the risks tied to supply dependence, regulatory compliance, and industry volatility. Grey market trends signal consumer interest, but fundamentals and prospectus details are key.
Patel Chem Specialities Limited IPO Dates
- Opening Date: Jul 25, 2025
- Closing Date: Jul 29, 2025
- Tentative Allotment: Jul 30, 2025
- Initiation of Refunds: Jul 31, 2025
- Credit of Shares to Demat: Jul 31, 2025
- Listing Date: Aug 1, 2025
Patel Chem Specialities Limited IPO Details
- Face Value: ₹10 per share
- Price band: ₹82 to ₹84 per share
- Lot size: 1,600 shares
- Retail minimum application: 2 lots = 3,200 shares ≈ ₹2,68,800 at ₹84
- Total Issue Size: 70,00,000 shares
- Issue Type: Bookbuilding IPO
- Listing At: BSE SME
- Share Holding Pre Issue: 1,78,70,000 shares
- Share Holding Post Issue: 2,48,70,000 shares
GMP of Patel Chem Specialities Limited IPO
Here’s the latest update on the Grey Market Premium (GMP) for Patel Chem Specialities Limited IPO:
Current GMP Estimate
- As of 19 July 2025, InvestorGain reported a GMP of ₹11 per share for the IPO’s upper price band of ₹84 → projecting an estimated listing price of ~₹95 (≈ 13.1% gain).
- Meanwhile, LiveIPO listed the GMP as ₹15 per share (≈ 18% premium), suggesting an estimated listing around ₹99 with potential profit of about ₹24,000 per lot.
Summary Table
| Source | Date | IPO Price Band | GMP Estimate | % Gain | Estimated Listing Price |
|---|---|---|---|---|---|
| InvestorGain | 19‑Jul‑2025 | ₹82–₹84 | ₹11 | ~13.1% | ₹95 |
| LiveIPO | ~19‑Jul‑2025 | ₹84 | ₹15 | ~18% | ₹99 |
| IPO Central | 19‑Jul‑2025 | ₹84 | ₹0 | 0% | ₹84 |
Promoters of Patel Chem Specialities Limited IPO
1. Bhupesh Vahalabhai Patel
- Position: Managing Director and chemical engineer by training.
- Experience: Over 30 years in the chemical sector, spanning organic and inorganic chemical manufacturing. He has been with the company since its inception as a private entity in 2008 and continues to lead after its conversion to a public limited company (Aug 2024).
- Business Interests: Also associated with Patel Industries since 1995, indicating deep roots in the family chemical business.
2. Dr. Anshu Bhupesh Patel
- Position: Director on the board.
- Background: Holds a degree in homeopathy and is actively involved in corporate affairs and governance. Joined the board in 2011.
- Responsibilities: Focuses on strategy and management, bringing a healthcare-relevant perspective to the company’s pharmaceutical excipient business.
3. Vini Bhupesh Patel
- Position: Director.
- Joined: Apr 2021.
- Role: Part of the second generation of promoter-owners; contributes to business development and operations oversight.
Summary Table
| Promoter | Role | Expertise & Background | Joining Date |
|---|---|---|---|
| Bhupesh Patel | MD & Promoter | Chemical engineer; ~30 years in chemical manufacturing | 25 June 2008 |
| Dr. Anshu B. Patel | Director & Promoter | Homeopathy doctor; involved in governance & strategy | 1 Oct 2011 |
| Vini B. Patel | Director & Promoter | Operations and business oversight | 1 Apr 2021 |
Patel Chem Specialities Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 3,200 | ₹2,68,800 |
| Individual investors (Retail) (Max) | 2 | 3,200 | ₹2,68,800 |
| S-HNI (Min) | 3 | 4,800 | ₹4,03,200 |
| S-HNI (Max) | 7 | 11,200 | ₹9,40,800 |
| B-HNI (Min) | 8 | 12,800 | ₹10,75,200 |
Key Takeaways
- You must apply in multiples of 1,600 shares—no smaller lots allowed.
- For retail investors, the minimum commitment is ₹134,400; submitting 2 lots (~₹268,800) hits the retail category limit.
High Net-Worth Individuals (HNI/S-HNI/B-HNI) can apply larger:
- S-HNI: 3 lots (~₹403K),
- B-HNI up to 7 lots (~₹940K).
Patel Chem Specialities Limited IPO Promoter Holding
Here’s the detailed shareholding of the promoters of Patel Chem Specialities Limited before and after the IPO:
| Category | Pre‑IPO Holding | Post‑IPO Holding |
|---|---|---|
| Promoters & Promoter Group | 1,70,00,180 shares (95.13%) | 68.36% |
| Public (Non‑Promoter) | 8,69,820 shares (4.87%) | 31.64% |
| Total Equity Shares (Pre‑IPO) | 1,78,70,000 | — |
| Total Equity Shares (Post‑IPO) | — | ~2,48,70,000 |
Breakdown:
- Promoters & Promoter Group own 95.13% of equity (1.70 million shares) before the IPO.
- After issuing 70 lakh fresh shares, their stake is expected to dilute to 68.36%, with the remaining 31.64% held by the public.
- Pre‑IPO total issued shares: 17.87 lakhs; Post‑IPO total: approximately 24.87 lakhs.
About Patel Chem Specialities Limited
Patel Chem Specialities Limited—established in June 2008 in Gujarat, India—is a family-run specialty chemical manufacturer, originally incorporated as a private limited company (CIN: U24100GJ2008PTC054305).It later became a public limited company prior to its SME IPO in mid‑2025.
Patel Chem Specialities Limited is a recognized manufacturer of pharmaceutical-grade excipients and specialty chemicals, backed by strong certifications, global export clientele, and a commitment to quality and innovation.
With a family-driven management team and expansion plans tied to its recent IPO, the company aims to scale both capacity and international presence.
Business & Product Focus
The company is engaged in manufacturing high-quality pharmaceutical-grade excipients and speciality chemicals with global exports. It holds GMP, ISO, FSSAI, Kosher, and FDA certifications
Key Products:
- Rheollose™ – Sodium Carboxymethyl Cellulose (Sodium CMC)
- Disolwell® – Croscarmellose Sodium (CCS)
- BlowTab® – Sodium Starch Glycolate (SSG)
- Swellcal™ – Calcium CMC
- Hindcel™ – Microcrystalline Cellulose
- Pregelatinized Starch, Magnesium Stearate, Sodium Monochloro Acetate, Colloidal MCC
These excipients are widely utilized in pharmaceutical tablet formulations to control disintegration, flow, and stability.
Vision & Values
- Vision: Become a global leader in the pharmaceutical excipient industry.
Core Values:
- Commitment to quality and regulatory compliance
- Innovation through in-house R&D and customer-driven formulations
- Strong client relations and responsive service
Market & Export Presence
- Significant exporter to markets like the U.S., Europe, Japan, Korea, and the Middle East (as noted in IPO filings).
- Products are used by clients in pharmaceutical, nutraceutical, and allied industries, appealing to both domestic and global quality-conscious manufacturers.
Manufacturing & Compliance
- In-house manufacturing facilities located in Gujarat (GIDC, Vatva), equipped with quality control and R&D labs.
- Holds multiple quality certifications: GMP (Good Manufacturing Practice), ISO 9001:2015, FDA, Kosher, and FSSAI licenses.
- Continuous adherence to global regulatory standards ensures export credibility and compliance readiness.
Corporate Snapshot
| Feature | Details |
|---|---|
| Founded | June 2008 (Gujarat, India) |
| Legal Status | Initially Private Ltd; converted to Public Ltd ahead of SME IPO |
| Industry | Pharmaceutical excipients & speciality chemicals |
| Certifications | GMP, ISO, FDA, Kosher, FSSAI |
| Export Markets | U.S., EU, Japan, Korea, Middle East |
| Core Products | Sodium CMC, CCS, SSG, Calcium CMC, MCC, pregela starch, etc. |
| Leadership | Bhupesh V. Patel, Dr. Anshu B. Patel, Vini B. Patel (family promoters) |
| Parent Group | Sister concern of Patel Industries, India |
Patel Chem Specialities Limited Financial Information
Here is a detailed financial snapshot of Patel Chem Specialities Limited, covering the fiscal years up to March 31, 2025 (restated figures from IPO prospectus) and prior years where available:
| Period Ended | 31 Mar 2025 | Mar 31 2024 | 31 Mar 2023 |
| Assets | ₹65.31 Crore | ₹46.97 Crore | ₹37.08 Crore |
| Revenue | ₹105.55 Crore | ₹82.72 Crore | ₹69.75 Crore |
| Profit After Tax | ₹10.57 Crore | ₹7.66 Crore | ₹2.89 Crore |
| EBITDA | ₹15.80 Crore | ₹12.02 Crore | ₹5.83 Crore |
| Net Worth | ₹35.40 Crore | ₹19.52 Crore | ₹11.87 Crore |
| Reserves and Surplus | ₹17.53 Crore | ₹18.52 Crore | ₹10.87 Crore |
| Total Borrowing | ₹14.85 Crore | ₹15.46 Crore | ₹11.79 Crore |
Key Performance Indicator (KPI)
Here are the Key Performance Indicators (KPIs) for Patel Chem Specialities Limited, derived from their Restated Financials (up to 2025) as mentioned in the IPO documents:
| KPI | Values |
|---|---|
| ROE | 29.85% |
| ROCE | 36.26% |
| Debt/Equity | 0.42 |
| RoNW | 24.32% |
| PAT Margin | 10.01% |
| EBITDA Margin | 14.97% |
| Price to Book Value | 4.11 |
Strengths of Patel Chem Specialities Limited IPO
Established Track Record in Chemical Manufacturing
The company has over a decade of experience in manufacturing specialty chemicals, particularly pharmaceutical excipients like Croscarmellose Sodium and Sodium Starch Glycolate.
Robust Financial Growth
Strong revenue and profit growth over the last three fiscal years, with improving margins, high RoCE (~36.26%), and RoNW (~29.85%)—indicating efficient capital deployment and profitability.
Export-Focused Business
A significant portion of revenue comes from exports to regulated markets like the USA, Europe, and Asia (Japan, Korea), helping diversify customer base and increase margins.
Low Debt and Strong Balance Sheet
Debt-to-equity ratio stands at a low 0.42x as of FY2025, which gives the company room to expand without financial strain.
Experienced Management Team
Led by industry veterans with decades of experience in chemical formulation, production, and international business.
Planned Capacity Expansion
IPO funds are being used to set up a new facility in Indrad, Gujarat, which will significantly enhance production capacity, enabling the company to meet rising demand and scale revenue.
Risks of Patel Chem Specialities Limited IPO
Customer Concentration Risk
A major part of revenue comes from a limited number of customers. Loss of any key client could significantly affect revenues.
Highly Competitive Industry
The specialty chemicals and pharma excipients sector is competitive with both Indian and international players, which may pressure pricing and margins.
Regulatory and Compliance Risks
Since a large portion of sales is export-based, the company must comply with strict international regulatory requirements, which may change and impact business continuity.
Execution Risk of New Facility
Any delay or cost overrun in the new plant’s construction at Indrad could hamper growth plans and investor expectations.
Forex Fluctuation
Since the company earns a significant share from exports, adverse currency movements could impact earnings.
SME Listing Risk
Being listed on the NSE SME platform means relatively low liquidity and higher volatility compared to main-board stocks.
Patel Chem Specialities Limited Contact Details
Here are the contact details for Patel Chem Specialities Limited (formerly a private limited entity), as per publicly available corporate information:
Registered Office
- Plot No. 272/4‑5, Phase II, GIDC Industrial Estate, Vatva Road,
Ahmedabad, Gujarat 382 445, India
Phone & Mobile Contacts
- Telephone / Mobile: +91 97129 99854
- Alternate Mobile: +91 90990 10967
- Landline: 040‑40102781
- Mobile (Alternate): +91 95503 33722
Email and Digital Contacts
- Official Email (ZaubaCorp listing): [email protected]
- Sales / Marketing Contact: dave.anand@patelindustries.co.in (via ChemicalBook listing)
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