IPO Overview
Incorporated in June 2013, Phychem Technologies Limited is a Nashik-based manufacturer of rotational moulding (roto moulding) compounds — specialised polyethylene-based raw materials used to produce hollow plastic products. The company manufactures customised compounds from LLDPE, HDPE, and specialised additives, supplied in powder or granule form. Its product portfolio includes colour powders, stone-effect compounds, PE foam compounds, Super Tuff HDPE, flexible, antistatic, and flame-retardant compounds, along with rotolining compounds. These materials are used in the manufacture of water tanks, chemical storage tanks, fuel tanks, portable sanitation units, furniture, agricultural products, and industrial containers. The company also manufactures custom-moulded tanks and offers toll-pulverising and rotolining services. It operates an ISO 9001:2015 certified manufacturing facility in Khatwad, Dindori, Nashik, with in-house quality control and laboratory infrastructure, and is recognised as a One Star Export House.
The company is now launching its SME IPO on the BSE SME platform. The IPO is a fully fresh issue of 27 lakh shares aggregating to ₹14.58 crore. The price band is set at ₹51 to ₹54 per share, and the lot size is 2,000 shares. The IPO opens on 31 August 2026 and closes on 2 September 2026, with listing expected on BSE SME around 7 September 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 31 August 2026 |
| IPO Close Date | 02 September 2026 |
| Allotment Date | 03 September 2026 (Expected) |
| Credit to Demat | 04 September 2026 |
| Listing Date | 07 September 2026 (Tentative) |
| Price Band | ₹51 – ₹54 per share |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Minimum Investment (Retail) | ₹2,16,000 (2 lots = 4,000 shares) |
| Minimum Investment (HNI) | ₹3,24,000 (3 lots = 6,000 shares) |
| Issue Size | ₹14.58 crore |
| Fresh Issue | 27,00,000 shares (₹14.58 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Anchor Investors | 7,68,000 shares (Reserved) |
| Qualified Institutional Buyers (QIB) | ~50% of net issue |
| Non-Institutional Investors (NII/HNI) | ~15% of net issue |
| Retail Individual Investors (RII) | ~35% of net issue |
| Market Maker | 1,38,000 shares (Reserved) |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue consists of a fresh issue of shares, meaning all funds raised will flow directly into the company for business use. Promoter holding will come down from 98.55% to 72.56% after the issue.
Objects of the Issue (Fund Utilization)
The company plans to use the net IPO proceeds for the following purposes:
- Repayment / prepayment of existing outstanding borrowings — ₹3.00 crore
- Capital expenditure for procurement of plant and machinery — ₹4.86 crore
- Working capital requirements — ₹3.00 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Hem Securities Ltd.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
Promoters & Management
The promoters of Phychem Technologies are Umakant Savadekar, Ulka Umakant Savadekar, Nivrutti Sonu Savdekar, and Vijaya Nivrutti Savdekar. The promoters bring extensive domain knowledge in polymer compounding, manufacturing operations, and export-driven business development.
Company Details
Phychem Technologies Limited is a specialised rotational moulding compound manufacturer serving both domestic and international customers across multiple end-use industries. The company handles the full process — from compounding raw polymers to supplying finished compounds and moulded products — and offers additional services including toll-pulverising and rotolining.
Sectors Served:
- Construction & Water Management (water and chemical tanks)
- Agriculture
- Automotive Components
- Furniture & Consumer Goods
- Industrial Containers & Portable Sanitation
Key Products & Services:
- Colour Powder Compounds
- Stone-Effect & PE Foam Compounds
- Super Tuff HDPE, Flexible, Antistatic & Flame-Retardant Compounds
- Rotolining Compounds
- Custom-Moulded Tanks
- Toll-Pulverising & Rotolining Services
Key Capabilities:
- Manufacturing facility in Nashik with three rotational moulding machines and in-house quality-control capabilities. Roto moulding compound capacity stood at 6,000 MT annually in FY2026, with production of 3,927 MT and utilisation of 65.45%; custom-moulded tank capacity was 2,000 tanks, with 91.45% utilisation.
- Diversified customer and geographic base, serving around 265 domestic and 24 global customers in FY2026 and exporting to approximately 21 countries. Export revenue stood at 23.32% of FY2026 revenue.
Certifications / Recognition:
- ISO 9001:2015 Certified
- One Star Export House
- Member of PLEXCONCIL (Plastics Export Promotion Council)
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹51.11 | ₹2.84 |
| FY26 (Full Year) | ~₹57.24 (est.) | ~₹4.09 (est.) |
Note: Revenue increased by 12% and PAT rose by 44% between FY25 and FY26.
Key Financial Metrics
- ROE of 34.33% and ROCE of 31.99% are attractive, while the debt-equity ratio of 0.47 remains manageable.
- At the upper price of ₹54, the post-issue P/E is approximately 19.42 times and market capitalisation is ₹55.30 crore.
- Entire IPO is a fresh issue — zero promoter exit; all funds go towards business development
Company Strengths
- Operates in a specialised niche segment — rotational moulding compounds — with customised product capabilities that differentiate it from ordinary plastic manufacturers
- Strong export presence — exporting to approximately 21 countries with export revenue at 23.32% of FY2026 revenue, reducing dependence on domestic market alone
- Attractive return ratios — ROE of 34.33% and ROCE of 31.99%, reflecting efficient capital deployment
- ISO 9001:2015 certified with One Star Export House recognition — adding credibility for institutional and global buyers
- Consistent growth in both revenue and profitability with improving operational efficiency as indicated by rising EBITDA
- Manageable debt levels with debt-equity ratio of 0.47, which the IPO proceeds will further reduce
Key Risks & Challenges
- Raw material price volatility: Primary raw materials are LLDPE and HDPE, which are crude oil-linked. Sharp rise in polymer prices that cannot be passed on will directly cut margins.
- Very small company: Net worth was ₹9.70 crore as on 31 March 2025, and the company had only 33 permanent employees. Operational and financial scale is limited.
- Thin profit margins: The profit margin is thin at 5.65%, which is normal for a compounding business where the polymer is the major cost.
- SME IPO liquidity risk: SME shares usually trade in low volume after listing, making exit difficult for short-term investors.
- No listed peers for comparison: The company has no directly comparable listed peers, making valuation assessment challenging for investors.
- Manufacturing concentration risk: Single facility in Nashik — any disruption at the plant could impact all production and supply commitments.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
