Patel Chem Specialities will open its Initial Public Offering (IPO) on Friday, July 25. The issue comprises a fresh offer of 70,00,000 equity shares with a face value of ₹10 each. The total issue size is ₹58.80 crore at the upper price band, with the price band set at ₹82 to ₹84 per share. The market lot is 1,600 equity shares.
The anchor portion will open and close on July 24. The issue will close on July 29. The expected allotment date and credit to demat accounts is on or before July 31. The listing date is August 1 and will be listed on BSE SME.
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The share allocation for Qualified Institutional Buyers (QIB, including Anchor) is 33,16,800 shares, for Non-Institutional Investors (NII) is 9,98,400 shares, for Retail Individual Investors is 23,31,200 shares and for market maker is 3,53,600 shares.
The lead managers are Cumulative Capital Private Limited and Unistone Capital Private Limited. The registrar to the issue is MUFG Intime India Private Limited (formerly Link Intime India Private Limited).
IPO proceeds use
The utilization of net proceeds will be for funding capital expenditure requirement of our company, to set up plant at Indrad, Mahesana for manufacturing Croscarmellose Sodium, Sodium Starch Glycolate – Corn Starch Base & Potato Starch Base and Calcium Carboxymethylcellulose (CMC), for general corporate purposes, and for issue-related expenses.
“The IPO proceeds will fuel our strategic expansion and strengthen our presence in both domestic and international markets. With a growing portfolio of pharmaceutical excipients and exports to over 15 countries, we are committed to timely and customized delivery through our advanced facilities in Vatva and Talod. The upcoming facility at Indrad, Mehsana will help us meet rising demand for key products like CCS, SSG, and Calcium CMC, and support our focus on innovation and customer-driven solutions,” said Bhupesh Patel, Managing Director of Patel Chem Specialities.
“We are proud to partner with Patel Chem Specialities Limited for their IPO journey. The company’s strong foundation in pharmaceutical excipients, backed by a seasoned leadership team and robust export footprint, positions it well for sustainable growth in a global market that’s increasingly leaning on reliable, high-quality ingredients. This offering marks an important milestone not just for the company, but for investors seeking value in a rapidly evolving pharmaceutical ecosystem. With the upcoming facility in Indrad, their scale and innovation potential are set to expand meaningfully,” said Swapnilsagar Vithalani, Co-founder and Director, Cumulative Capital Private.
About Patel Chem Specialities
Established in 2008, Patel Chem Specialities Limited is a leading manufacturer of cellulose- and starch-based pharmaceutical excipients and is known for its commitment to global quality standards, according to a press release.
The company’s products are integral to drug formulation processes and comply with global quality benchmarks. With a dedicated in-house R&D facility and an experienced technical team, the company offers customized, cost-effective, and innovative specialty chemical solutions across diverse applications.
As of FY25, the company has an installed production capacity of 7,200 MT per year, with a capacity utilization rate of 89%.
In FY25, the company reported a strong performance with Operating Revenue of Rs 105.09 crore, EBITDA of Rs 15.27 crore with Net Profit of Rs 10.57 crore.