Indian Emulsifiers, a manufacturer of specialty chemicals, got a great deal of coverage from investors after its first public offering (IPO). Indian Emulsifiers Limited (IEL) works in the specialty chemicals segment and is focused on developing and supplying a broad product range of specialty chemicals.
Subscription Highlights
The IPO was 427.95 times, with investors purchasing 98.47 crore equity shares against the offering size of 23.01 lakh equity shares. The retail investors showed their intense interest, getting 485. 8 times the reserved proportion. Even non-institutional investors were optimistic, choosing 784.2 times the allowed quota. QIBs subscribed 174.5 times the portion they were allocated.
Offer Details
Indian Emulsifiers planned to raise ₹42.39 crore from the capital market through a new issue of 32.11 lakh equity shares. The IPO price band has been set at ₹125-132 per share. The company secured ₹12.01 crore from anchor investors a day before the issue went live. Important institutional investors include Blue Lotus Capital Multibagger Fund, IEGFL Equity Opportunity, Persistent Growth Fund, Zeal Global Opportunities Fund, and Resonance Opportunities Fund.
Utilization of Proceeds
Net fresh issue proceeds will be mainly utilized for capital expenditure purposes, including plant and machinery, civil work, installation costs, and working capital requirements. The money raised will also be used for general corporate matters.
Other IPOs in the Market
Subscribed 3.41 times on its second day, this pharmaceutical company’s IPO strives to raise ₹43.16 crore. Their initial IPO, which was run nearly a year ago, was oversubscribed 46.46 times on the opening day. The fixed price issue will end on May 21, aiming for ₹5.54 crore. Subscribed fully on day one, this electrical and firefighting appliances company aspires to mobilize ₹26.40 cr through the IPO.
Indian Emulsifiers’ business model
IEL manufactures specialty chemicals such as Esters, Photeric and Phosphate Esters, Imidazolines, Wax Emulsions, and SMO and PIBSA Emulsifiers. These compounds are used in a wide range of fields, such as mining, textiles, cleaning, PVC/ rubber, personal care, and food.
IEL is the owner of a manufacturing plant situated in Maharashtra, India. The plant has modern machines, process control systems, and forward-thinking R&D capabilities. Its high-pressure stainless-steel reactors offer versatility in batch sizes and reaction conditions.
The firm ensures quality regulation and operates its own in-house QC facility. Its R&D operations target innovation, process optimization, and product development. The scalability of IEL’s business model is ensured by having a production capacity of 4,800 metric tons annually (as of March 31, 2023).
The business can adjust to shifting market conditions and extend its operations. The IEL has the support of an accomplished promoter and management. Their strategic vision actively promotes growth and operational efficiency.
Conclusion
Indian Emulsifiers’ IPO was overwhelmingly demanded, symbolizing investors’ faith in the company’s growth potential. The company’s success is supported by product diversification, in-house manufacturing, and an emphasis on quality. For investors who want long-term exposure to the specialty chemicals sector, IEL may be an intriguing option.
Image Source: Live Mint
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