Phytochem Remedies IPO Overview
Jammu-based corrugated packaging products manufacturer raising ₹38.22 cr (100% fresh issue, no OFS). Price: ₹98 (Fixed Price). Lot: 1,200 shares (₹2,35,200 min investment for 2 lots).
Funds for equipment/machinery purchase (₹13.60 cr), civil construction (₹5.88 cr), debt repayment (₹9.37 cr), general corporate purposes (₹5.65 cr).
Lead: Mefcom Capital Markets. Registrar: Bigshare Services.
Founded 2002 (started manufacturing operations 2014 in Bari Brahmana, Jammu). Corrugated packaging manufacturer specializing in corrugated boxes (3-ply, 5-ply, 7-ply), printed boxes, corrugated rolls, pads, and sheets. 46 employees (as of December 31, 2024).
Products: Corrugated boxes (3/5/7-ply), printed boxes, corrugated rolls, pads, sheets serving food & beverages, FMCG, pesticides, pharmaceuticals, automotive industries.
Part of Bohra Group with 35+ years expertise in Agricultural Plastics, fertilisers, ISP, Call Centres. Started with semi-automatic line (2014), fully automated corrugated board plant (2022) spanning 75,000 sq. ft. with 100 MT/day capacity.
Operating from 2 units at Bari Brahmana, Jammu: Unit 1 (43,360 sq. ft., 12,000 utilized), Unit 2 (1,73,440 sq. ft., 55,000 utilized). 90,000 sq. ft. unutilized land ready for expansion.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME (BSE SME) |
| IPO Open Date | 18 December 2025 (Wednesday) |
| IPO Close Date | 22 December 2025 (Sunday) |
| Anchor Investor Bidding | Not Applicable (SME IPO) |
| Allotment Date | 23 December 2025 (Monday) – Expected |
| Credit to Demat | 24 December 2025 (Tuesday) – Expected |
| Refund Initiation | 24 December 2025 (Tuesday) – Expected |
| Listing Date | 26 December 2025 (Thursday) – Tentative |
| Price Band | ₹98 per share (Fixed Price) |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares (minimum lot) |
| Min Investment (Retail) | ₹2,35,200 (2,400 shares / 2 lots at ₹98) |
| sNII Investment | ₹3,52,800 (3 lots / 3,600 shares) minimum |
| bNII Investment | Not specified separately |
| Issue Size | ₹38.22 crore total |
| Fresh Issue | ₹38.22 crore (100%) – 39,00,000 shares |
| Offer for Sale (OFS) | NIL – No OFS component |
| Total Shares Offered | 39,00,000 equity shares |
| Listing | BSE SME |
| Post-Issue Market Cap | ~₹115.40 crore (at fixed price ₹98) |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | 0% (NIL allocation) |
| NII (Non-Institutional Investors) | 50% (19,50,000 shares / 18,51,600 shares per some sources) |
| Retail Individual Investors | 50% (19,50,000 shares / 18,51,600 shares per some sources) |
| Market Maker | Portion reserved (not specified) |
Selling Shareholders (OFS ₹0 crore)
No OFS Component – 100% Fresh Issue
Note: This is a 100% fresh issue IPO with no Offer for Sale. All proceeds go directly to the company for business purposes. Post-IPO, the issue constitutes 33.12% of post-IPO paid-up equity capital. Promoter holding will dilute from pre-IPO levels.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹38.22 crore) will be used for:
- Purchase and Installation of Equipment/Machinery – ₹13.60 crore (35.6%)
- Capital expenditure for purchase of equipment and machineries
- Enhancing production capacity and operational efficiency
- Technology upgrades for automated manufacturing
- Installation of new machinery in unutilized land areas
- Capital Expenditure for Civil Construction – ₹5.88 crore (15.4%)
- Construction on unutilized land (15,000 sq. ft. Unit 1, 75,000 sq. ft. Unit 2)
- Building infrastructure to accommodate new manufacturing machinery
- Expansion of manufacturing footprint for future growth
- Repayment/Prepayment of Borrowings – ₹9.37 crore (24.5%)
- Full or partial repayment of bank loans and borrowings
- Reduction of interest burden on P&L
- Improving financial flexibility and debt-equity ratio
- General Corporate Purposes – ₹5.65 crore (14.8%)
- Working capital requirements
- Business development initiatives
- Strategic expenses and contingencies
- IPO Expenses – ₹3.72 crore (9.7%)
- Cost of IPO process including lead manager, registrar, legal, printing
Strategic Focus:
- Balanced allocation: 51% for capex (machinery + construction), 25% for debt repayment, 15% general corporate
- Significant capacity expansion focus through machinery purchase and civil construction
- Debt deleveraging (₹9.37 cr, 25%) improving balance sheet health
- Utilizing 90,000 sq. ft. unutilized land for growth
- Future diversification plan: eco-friendly packaging (OGR paper, sublimation paper, coated laminates, paper bags)
OFS Proceeds:
- NIL – No promoter exit
Note: 100% fresh issue demonstrates strong growth focus. Capex-heavy allocation (51%) typical for manufacturing capacity expansion.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Mefcom Capital Markets Limited
- Address: G-III, Ground Floor, Dalamal House, Nariman Point, Mumbai – 400021, Maharashtra
- Phone: +91 11 4650 0500
- Website: www.mefcomcap.in
Registrar:
- Bigshare Services Private Limited
- Address: S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, next to Ahura Centre, Andheri East, Mumbai – 400093
- Also: 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri(E), Mumbai – 400 059
- Phone: +91-22-6263 8200
- Website: www.bigshareonline.com / https://ipo.bigshareonline.com/IPO_Status.html
Market Maker:
- To be appointed
Promoters & Management
Key Promoters (4 Promoters):
Individual Promoters:
- Mr. Niranjan Surana – Promoter & Director
- Key promoter with extensive experience in packaging sector
- Part of Bohra Group with 35+ years expertise
- Ms. Aditi Bohra – Promoter & Director
- Key promoter associated with Bohra Group
- Expertise in diversified businesses
- Bohra Agrifilms Private Limited – Corporate Promoter
- Part of Bohra Group with agricultural plastics business
- Ms. Shilpa Surana – Promoter
Bohra Group Background:
- 35+ years of expertise in various industries: Agricultural Plastics, fertilisers, Internet Service Providers (ISP), Call Centres
- Diversified conglomerate entering paper packaging sector through Phytochem Remedies
Promoter Holding:
- Pre-IPO: Data not fully disclosed
- Post-IPO: Issue constitutes 33.12% of post-IPO paid-up equity capital (dilution significant)
Company History:
- Incorporated: December 27, 2002 (CIN: U24233RJ2002PTC017943)
- Operations Started: 2014 with semi-automatic manufacturing line in Bari Brahmana, Jammu
- Legacy: 23 years since incorporation, 11 years of manufacturing operations
- Evolution: 2002-2013 (development & planning phase), 2014 (semi-automatic line launch), 2022 (fully automated corrugated board plant spanning 75,000 sq. ft.)
- Workforce: 46 employees (as of December 31, 2024)
- Milestone: Transitioned from semi-automatic to state-of-the-art fully automatic plant with 100 MT/day capacity; ISO 9001:2015 certified
Company Contact:
- Registered Office: 220, Ashok Nagar Main Road, Udaipur City, Udaipur, Girwa, Rajasthan, India – 313001
- Manufacturing Units: Aditi Complex, Phase-II, Lane No. 5, SIDCO Industrial Complex, Bari Brahmana, Jammu-181133, J&K, India
- Phone: +91 294 4577549 / 01923-220172
- Website: www.phytochem.co.in
COMPANY OVERVIEW
Establishment & Background:
- Incorporated: December 2002; Manufacturing Started: 2014 (11 years operations)
- Industry: Corrugated Packaging Products Manufacturing
- Headquarters: Udaipur, Rajasthan (Registered Office); Manufacturing in Bari Brahmana, Jammu
- Positioning: Part of diversified Bohra Group; regional corrugated box manufacturer serving multiple industries with focus on quality and technology
Business Model:
Product Portfolio – Corrugated Packaging Solutions:
- Corrugated Boxes (3-ply, 5-ply, 7-ply)
- Standard corrugated boxes in multiple ply configurations
- 3-ply for lighter products
- 5-ply for medium-weight items
- 7-ply for heavy-duty applications
- Customizable sizes: Width up to 1800mm, Length 1000mm, Height 650mm
- Printed Corrugated Boxes
- High Definition Four-Color computerized corrugated board printing
- Replaces offset printing with flexible board printing
- UV coating machine for extra gloss and weather protection
- Brand customization for clients
- Corrugated Rolls
- Roll form corrugated material
- Flexible packaging solutions
- Corrugated Pads and Sheets
- Individual sheets and pads
- Used for cushioning, layering, protection
- Specialized Products
- Multiple flute combinations (A, B, C) for better strength
- Moisture-controlled products with state-of-the-art moisture control systems
- Customized packaging solutions per client requirements
Future Diversification (Post-IPO Expansion):
- Eco-friendly packaging: OGR paper, sublimation paper, coated laminates, paper bags
- Sustainable packaging initiatives
End Applications – Industry Sectors:
- Food & Beverages: Fruit & vegetable boxes, FMCG products, spices, edibles
- Pharmaceuticals: Moisture-proof boxes for medicines, healthcare products
- Pesticides: Robust packaging for chemical products
- FMCG: Personal care, cosmetics, household products
- Automotive: Industrial goods packaging
- General Industries: Liquids, cosmetics, industry goods
Client Base:
B2B Manufacturing Clients:
- Food & beverage companies requiring fruit/vegetable packaging
- FMCG brands for product packaging
- Pharmaceutical companies (despite company name “Phytochem”, no pharma manufacturing; only supplies packaging to pharma)
- Pesticide manufacturers
- Automotive and industrial companies
- Diversified across multiple sectors reducing single-industry dependency
Manufacturing Infrastructure:
Unit 1 – Bari Brahmana, Jammu:
- Total allocated area: 43,360 sq. ft.
- Currently utilized: 12,000 sq. ft.
- Unutilized: ~15,000 sq. ft. (available for expansion)
Unit 2 – Bari Brahmana, Jammu:
- Total allocated area: 1,73,440 sq. ft. (~2.52 lakh sq. ft. total across both units per some sources)
- Currently utilized: 55,000 sq. ft.
- Unutilized: ~75,000 sq. ft. (available for expansion)
Total Unutilized Land: ~90,000 sq. ft. across both units – ready for IPO-funded expansion
Production Capacity:
- Fully automatic corrugated board plant (2022)
- Latest board line capacity: 100 metric tons per day
- State-of-the-art moisture control systems
- Cutting-edge computerized equipment from leading test equipment manufacturers in India
- ISO 9001:2015 certified facility
Revenue Model:
- B2B sales of corrugated packaging products
- Customized solutions commanding premium pricing
- Long-term supply relationships with established clients
- Project-based and repeat order business
Value Proposition:
- Bohra Group Legacy: 35+ years expertise in diversified sectors providing business stability
- Technology Leadership: Fully automated plant with 100 MT/day capacity, UV coating, HD 4-color printing
- Quality Focus: ISO 9001:2015 certified; state-of-the-art moisture control and computerized testing
- Customization Capability: Tailored packaging solutions across industries
- Expansion Readiness: 90,000 sq. ft. unutilized land for future growth
- Strategic Location: Jammu (Bari Brahmana SIDCO Industrial Complex) providing logistical advantages
Market Position:
- Regional player in corrugated packaging space
- 11 years manufacturing track record (2014-2025)
- 46 employees
- Strong presence in Jammu region; marketing network across multiple states
Operations
Service Delivery:
- Manufacturing Base: Bari Brahmana, Jammu (SIDCO Industrial Complex) with strategic logistical advantages
- Regional Presence: Strong foothold in Jammu, India
- Marketing & Distribution: Network established across multiple states (pan-India reach)
Financial Performance Highlights:
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin |
| FY25 (Mar 2025) | 36.81 / 36.29 | 4.48 | 12.17% |
| FY24 (Mar 2024) | 32.90 | 2.31 | 7.02% |
| FY23 (Mar 2023) | Data not fully disclosed | Lower than FY24 | Lower |
Growth Trajectory:
- Revenue Growth (FY24-25): 11.89% YoY (₹32.90 cr to ₹36.81 cr)
- PAT Growth (FY24-25): 93.94% YoY (₹2.31 cr to ₹4.48 cr) – nearly doubled
- Margin Expansion: PAT margin improved from 7.02% (FY24) to 12.17% (FY25)
- Concern: Analyst review notes “sudden boost in bottom lines from FY25 onwards raises eyebrows and concern over sustainability”
- Consistent profitability with strong operational leverage post full automation in 2022
Company Strengths
- Explosive Profitability Growth – 94% PAT Growth (FY24-25):
- PAT nearly doubled from ₹2.31 cr (FY24) to ₹4.48 cr (FY25) – 94% YoY growth
- PAT margin surged from 7.02% to 12.17% – margin expansion of 515 bps
- Revenue growth of 12% (₹32.90 cr to ₹36.81 cr) with strong operating leverage
- Demonstrates benefit of 2022 full automation kicking in
- Part of Diversified Bohra Group – 35+ Years Conglomerate Backing:
- Bohra Group with 35+ years expertise across Agricultural Plastics, fertilisers, ISP, Call Centres
- Diversified conglomerate backing provides financial stability and business network
- Cross-industry experience brought to packaging sector
- Established promoter credibility
- State-of-the-Art Automated Manufacturing – 100 MT/Day Capacity:
- Fully automated corrugated board plant (2022) spanning 75,000 sq. ft.
- 100 metric tons/day production capacity ensuring optimal productivity
- HD Four-Color computerized printing replacing offset printing
- UV coating machine for premium finishing
- State-of-the-art moisture control systems for quality products
- Cutting-edge computerized testing equipment
- Significant Expansion Runway – 90,000 Sq. Ft. Unutilized Land:
- 90,000 sq. ft. unutilized land across both units ready for expansion
- IPO proceeds (₹19.48 cr, 51%) allocated for machinery + civil construction on this land
- Scalability without need for new land acquisition
- Future diversification into eco-friendly packaging (OGR paper, sublimation paper, coated laminates, paper bags)
- ISO 9001:2015 Certified – Quality & Compliance Focus:
- ISO 9001:2015 certification reflecting commitment to quality standards
- Consistent production quality
- Meets industry compliance requirements
- Trust factor for pharmaceutical, FMCG, food & beverage clients
- Diversified End-Industry Portfolio:
- Serves food & beverages, FMCG, pesticides, pharmaceuticals, automotive
- Multi-industry presence reduces single-sector dependency
- Cross-selling opportunities across client base
- Recession-resilient sectors (FMCG, pharma, food)
- Strategic Location with Logistical Advantages:
- Bari Brahmana SIDCO Industrial Complex, Jammu location
- Proximity to major northern markets (Punjab, Haryana, Delhi NCR, J&K)
- Lower operational costs compared to metro cities
- Government support through industrial park infrastructure
- India’s Booming E-Commerce & Packaging Sector:
- E-commerce explosion driving corrugated packaging demand
- FMCG growth requiring quality packaging solutions
- Sustainable packaging focus benefiting corrugated (recyclable, eco-friendly)
- Government’s “Make in India” and packaging industry thrust
Key Risks & Challenges
- Highly Competitive and Fragmented Industry:
- Corrugated box manufacturing is highly competitive and fragmented segment (per analyst review)
- Thousands of small, medium, large players across India
- Competes with established players like TCPL Packaging, VRL Logistics, Packaging Corporation of India, and numerous regional players
- Price-based competition limiting pricing power
- Low differentiation in commodity corrugated boxes
- Small Scale – ₹36.81 Cr Revenue, 46 Employees, Regional Player:
- Relatively small player with ₹36.81 cr revenue (FY25)
- Only 46 employees limiting execution capacity
- Strong regional presence in Jammu but limited pan-India scale
- May struggle to compete for very large orders from national FMCG/pharma players
- Sustainability Concerns – Sudden 94% PAT Surge Raises Eyebrows:
- Analyst review explicitly states: “sudden boost in bottom lines from FY25 onwards raises eyebrows and concern over its sustainability”
- PAT margin jumped from 7.02% (FY24) to 12.17% (FY25) – may not be sustainable
- Revenue growth only 12% vs. PAT growth 94% indicates margin expansion that could reverse
- Commodity packaging margins typically thin; 12% PAT margin may compress under competition
- Aggressive Valuation – Issue Appears Aggressively Priced:
- Analyst review states: “Based on its recent financial data, the issue appears aggressively priced”
- At ₹98 per share, ₹115.40 cr market cap for ₹36.81 cr revenue (3.14x P/S ratio) is steep
- Valuation rich considering small scale, regional presence, fragmented sector
- P/E likely elevated on FY25 earnings (₹4.48 cr PAT)
- Misleading Name – “Phytochem” Suggests Pharma, Actually Packaging:
- Company name “Phytochem Remedies” suggests pharmaceutical/chemicals business
- Analyst review clarifies: “The company has nothing to do with pharma segment, but supplied its products to some of pharma companies”
- CIN code U24233RJ2002PTC017943 also indicates pharma/chemicals classification
- Actually a corrugated box manufacturer – name creates confusion
- May attract investors expecting pharma exposure, leading to disappointment
- Longer Gestation Period for Migration – Small Post-IPO Paid-Up Capital:
- Analyst review notes: “Small paid-up equity capital post-IPO indicates longer gestation period for migration”
- Post-IPO paid-up capital will remain small
- Migration to main board (BSE/NSE) will take longer time
- Liquidity may remain constrained on SME platform
- High Capital Intensity – 51% of IPO for Capex (Machinery + Construction):
- ₹19.48 cr (51% of proceeds) allocated to machinery purchase and civil construction
- Manufacturing business requires continuous capex for capacity, technology, maintenance
- Future growth may need additional capital infusion
- Asset-heavy model compared to asset-light service businesses
- Raw Material Price Volatility – Paper & Paperboard Dependency:
- Corrugated boxes made from kraft paper and paperboard
- Raw material costs constitute significant portion of COGS
- Pulp and paper prices volatile based on global commodity cycles
- Limited pricing power to pass on cost increases immediately to clients
- Single-Region Manufacturing Concentration – Both Units in Jammu:
- Both manufacturing units concentrated in Bari Brahmana, Jammu
- Geographic concentration risk – natural disasters, regional issues, power shortages
- J&K region historically faces political uncertainties
- No manufacturing diversification across India
- Limited Track Record Post Full Automation:
- Fully automated plant commissioned only in 2022
- Only ~3 years of operating history with full automation
- FY25 exceptional margins may be outlier; need longer track record
- True operational efficiency and sustainability yet to be proven over multiple years
Disclaimer
This information is based on publicly available sources including SEBI RHP/DRHP filings, company disclosures, analyst reviews, and news reports. Investors should conduct their own research and consult with financial advisors before making investment decisions.
Past performance is not indicative of future results. The company reported strong financial performance (FY25: 12% revenue growth to ₹36.81 crore, 94% PAT growth to ₹4.48 crore, 12.17% PAT margin up from 7.02%), operates as corrugated packaging products manufacturer under diversified Bohra Group (35+ years expertise in Agricultural Plastics, fertilisers, ISP, Call Centres) with 46 employees, manufactures 3/5/7-ply corrugated boxes, printed boxes, rolls, pads, sheets serving food & beverages, FMCG, pesticides, pharmaceuticals, automotive industries, operates two facilities in Bari Brahmana Jammu (2.17 lakh sq. ft. total, 67,000 utilized, 90,000 unutilized ready for expansion), fully automated plant (2022) with 100 MT/day capacity, ISO 9001:2015 certified, but faces significant risks including highly competitive and fragmented corrugated box industry (thousands of players limiting pricing power), small scale (₹36.81 cr revenue, 46 employees, regional player with limited pan-India presence), sustainability concerns with sudden 94% PAT surge in FY25 raising eyebrows about margin sustainability (analyst review explicitly warns), aggressive valuation appearing pricey per analyst (3.14x P/S, elevated P/E on potentially unsustainable margins), misleading “Phytochem Remedies” name suggesting pharma but actually packaging business (no pharma manufacturing), longer migration gestation due to small post-IPO paid-up capital, high capital intensity (51% of IPO i.e. ₹19.48 crore for capex on machinery + construction requiring future capital), raw material price volatility (paper/paperboard), single-region manufacturing concentration in Jammu creating geographic risk, and limited 3-year track record post 2022 full automation. 100% fresh issue allocated to capex (₹13.60 cr machinery, ₹5.88 cr construction), debt repayment (₹9.37 cr), general corporate (₹5.65 cr), IPO expenses (₹3.72 cr). Incorporated 2002, manufacturing since 2014, 11 years operational track record. SME listing on BSE. Investors must review detailed competitive positioning, margin sustainability, valuation premium, misleading company name, and analyst concerns about “sudden boost in bottom lines raising eyebrows” in RHP and analyst reviews before applying.
