Draft documents for Indian Emulsifiers' IPO are filed with the NSE

Draft documents for Indian Emulsifiers' IPO are filed with the NSE

The pricing range for the shares, according to reports, is ₹115–128 per share.

Indian Emulsifiers Limited intends to raise money via a public offering and issue up to 3,500,000 additional equity shares. The company has filed its Draft Red Herring Prospectus (DRHP) to the NSE.

It has been reported that the shares would be priced between ₹115 and ₹128 a share. It is anticipated that the business would raise ₹44.80 crore at the top end of this pricing range. Ekadrishta Capital is the issue's book-running manager.

As to the DRHP filing, Gunvantkumar Vaid-backed GJNX Ventures, which is recognized for its preference for small and medium-sized businesses, owned 1.80% of the firm.

The offering's proceeds, as disclosed in the prospectus, will be used to finance the business's capital expenditure needs for equipment and machinery, associated startup expenditures, and civil works. The purpose of the sophisticated equipment purchase is to precisely meet the expected increase in demand that would arise from impending sales initiatives.

The filing information indicate that the income from operations for the month of December 2023 is ₹48.67 crore, and for the month of March 2023, it is ₹41.17 crore. The EBITDA margin for December 2023 is estimated to be 22.99% at ₹11.20 crore, while the EBITDA margin for March 2023 is reported to be 19.09% at ₹7.86 crore. The profit after tax (PAT) for the month of March in 2023 is ₹3.89 crore with a net profit margin of 9.46 per cent, and for December 2023, it is ₹6.75 crore, showing a margin of 13.87 per cent.

With a focus on esters, phosphate esters, imidazolines, succinimides, sulfosuccinates, specialty emulsifiers, and completed goods, Indian Emulsifiers is a prominent participant in the specialized chemical sector. The business provides its speciality chemicals to a broad range of sectors, such as the food, mining, textile, cleaning, PVC (polyvinyl chloride)/rubber, and personal care industries.