Sundrex Oil Company IPO Overview
Kolkata-based industrial and automotive lubricants manufacturer raising ₹32.25 cr (100% fresh issue, no OFS). Price: ₹81-86. Lot: 1,200 shares (Note: Minimum 2 lots required per published data = ₹2,06,400 min investment at upper band ₹86).
Funds for working capital, capital expenditure, debt repayment (secured/unsecured loans), general corporate purposes. Specific breakdown not yet disclosed in available documents.
Lead: Affinity Global Capital Market. Registrar: Cameo Corporate Services.
Founded 2010 (incorporated 2010 in West Bengal). Manufacturing-led B2B-focused lubricants company specializing in industrial lubricants, automotive lubricants, greases, and specialty products. Serves industries in India and neighbouring countries.
Products: Industrial lubricants (hydraulic oils, gear oils, turbine oils, compressor oils, metalworking fluids), automotive lubricants (engine oils, transmission fluids, brake fluids), greases, specialty products. Also provides contract manufacturing services including toll blending, contract packaging, and private labeling for other brands.
B2B model serving industrial clients and PSU customers. Manufacturing-led with focus on quality, process discipline, and long-standing customer relationships.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME (NSE SME Emerge) |
| IPO Open Date | 22 December 2025 (Monday) |
| IPO Close Date | 24 December 2025 (Wednesday) |
| Anchor Investor Bidding | Data not disclosed |
| Allotment Date | 26 December 2025 (Friday) – Expected |
| Credit to Demat | 29 December 2025 (Monday) – Expected |
| Refund Initiation | 29 December 2025 (Monday) – Expected |
| Listing Date | 30 December 2025 (Tuesday) – Tentative |
| Price Band | ₹81 – ₹86 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares (minimum lot) |
| Min Investment (Retail) | ₹2,06,400 (2,400 shares / 2 lots at upper band ₹86 per published data) |
| sNII Investment | Data shows 3 lots minimum = 3,600 shares |
| bNII Investment | Data not fully specified |
| Issue Size | ₹32.25 crore total |
| Fresh Issue | ₹32.25 crore (100%) – 37,50,400 shares |
| Offer for Sale (OFS) | NIL – No OFS component |
| Total Shares Offered | 37,50,400 equity shares |
| Listing | NSE SME Emerge |
| Post-Issue Market Cap | ~₹115.20 crore (at upper price band ₹86) |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | 2.07% |
| NII (Non-Institutional Investors) | 39.22% |
| Retail Individual Investors | 58.72% |
| Market Maker | 1,88,800 shares reserved |
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. Promoters are not exiting.
Promoter Change (May 2025 Revised DRHP): December 2024 filing included Mrs. Seema Sonthalia as promoter; May 2025 revised DRHP excludes her. Current promoters: Mr. Mahesh Sonthalia, Mr. Shashank Sonthalia, Mr. Aman Sonthalia.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹32.25 crore) will be used for:
Detailed fund utilization breakdown not fully disclosed in available public documents. General purposes stated:
- Working Capital Requirements
- Day-to-day operational expenses
- Raw material procurement (base oils, additives)
- Managing payment cycles with industrial and PSU customers
- Capital Expenditure
- Purchase of equipment and machinery
- Manufacturing capacity expansion
- Technology upgrades
- Repayment/Prepayment of Secured or Unsecured Loans
- Full or partial repayment of existing borrowings
- Reduction of interest burden
- Improving balance sheet efficiency (as stated by CMD Mahesh Sonthalia)
- General Corporate Purposes
- Strategic initiatives
- Business expansion plans (Middle East exports, white oil/LLP-IP grade diversification)
- Offer-related expenses
Strategic Focus:
- “Improving balance sheet efficiency” mentioned by CMD suggests significant debt reduction component
- Focus on operational capabilities strengthening per management commentary
- Export expansion plans to Middle East (per May 2025 revised DRHP)
- Diversification into white oil and LLP-IP grade oils
- Two subsidiaries: Ecolixir Greentech (circular economy, EPR), OPRS Enterprises (B2B distribution)
OFS Proceeds:
- NIL – No promoter exit
Note: 100% fresh issue for growth and balance sheet strengthening. Specific amounts for each utilization category awaited in final RHP. Management commentary emphasizes “balance sheet efficiency” suggesting debt is priority.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Affinity Global Capital Market Private Limited
Registrar:
- Cameo Corporate Services Limited
- Phone: +91-44-28460390
- Email: [email protected]
- Website: https://ipo.cameoindia.com/
Market Maker:
- To be appointed (1,88,800 shares reserved)
Promoters & Management
Key Promoters (3 Promoters – Sonthalia Family):
Individual Promoters:
- Mr. Mahesh Sonthalia – Promoter, Chairman & Managing Director
- Oversees overall strategy and governance
- Deep experience in lubricants and industrial products sector
- Leadership in building manufacturing-led B2B business
- Mr. Shashank Sonthalia – Promoter, Whole-Time Director & CEO
- Responsible for business operations, execution, and growth initiatives
- Drives operational excellence and customer relationships
- Mr. Aman Sonthalia – Promoter & Chief Financial Officer
- Manages finance, compliance, and risk controls
- Oversees financial planning and balance sheet management
Note on Promoter Change: Mrs. Seema Sonthalia was included as promoter in December 2024 DRHP but excluded in May 2025 revised DRHP filed to SEBI (after IPO withdrawal in Dec 2024 and resubmission in May 2025).
Promoter Holding:
- Pre-IPO: Data not fully disclosed
- Post-IPO: Data not fully disclosed
Company History:
- Incorporated: 2010 (CIN: U23200WB2010PLC147053)
- Operations: 15 years in lubricants manufacturing (2010-2025)
- Evolution:
- 2010: Established as manufacturer of industrial and automotive lubricants
- Built B2B-focused business serving industrial and PSU customers
- Developed contract manufacturing capabilities (toll blending, contract packaging, private labeling)
- December 2024: Filed DRHP with 4 promoters including Mrs. Seema Sonthalia
- December 2024: Withdrew IPO proposal
- May 2025: Resubmitted revised DRHP with 3 promoters (Mrs. Seema Sonthalia excluded)
- 2025: Established two wholly-owned subsidiaries – Ecolixir Greentech (circular economy, EPR compliance) and OPRS Enterprises (B2B distribution)
- Planning export expansion to Middle East and diversification into white oil, LLP-IP grade oils
- Workforce: Data not disclosed
- Milestone: 41% revenue growth (FY24-25), 112% PAT growth (FY24-25), strong PSU customer relationships
Company Contact:
- Registered Office: 16 India Exchange Place, 3rd Floor, Room No. 14, Kolkata, West Bengal – 700001, India
- Phone: +91 8335073185
- Email: [email protected]
- Website: www.sundrex.com
COMPANY OVERVIEW
Establishment & Background:
- Incorporated: 2010 (15 years operations)
- Industry: Lubricants Manufacturing – Industrial & Automotive
- Headquarters: Kolkata, West Bengal
- Positioning: Manufacturing-led B2B lubricants company serving industrial and PSU customers in India and neighbouring countries
Business Model:
Product Portfolio – Lubricants & Specialty Products:
- Industrial Lubricants
- Hydraulic Oils (machinery, industrial equipment)
- Gear Oils (industrial gearboxes)
- Turbine Oils (power generation, steam turbines)
- Compressor Oils (air compressors, gas compressors)
- Metalworking Fluids (cutting oils, grinding fluids)
- Heat Transfer Oils, Transformer Oils, White Oils
- Automotive Lubricants
- Engine Oils (petrol, diesel – 2T, 4T for 2-wheelers, passenger cars, commercial vehicles)
- Transmission Fluids (automatic, manual)
- Brake Fluids, Coolants, Greases
- Greases
- Multi-purpose greases for automotive and industrial applications
- Specialty Products
- High-performance specialty lubricants for specific industrial applications
Contract Manufacturing Services:
- Toll Blending: Blending lubricants for other brands using client formulations
- Contract Packaging: Packaging services for third parties
- Private Labeling: Manufacturing branded lubricants for other companies to sell under their brand names
Subsidiaries (per May 2025 Revised DRHP):
- Ecolixir Greentech Private Limited (Wholly-owned)
- Engaged in re-refined base oils
- Circular economy initiatives
- EPR (Extended Producer Responsibility) compliance
- OPRS Enterprises Private Limited (Wholly-owned)
- B2B distributor targeting industrial and retail lubricant markets
Customer Base:
- Industrial Clients: Manufacturing, power generation, automotive, construction, mining, agriculture sectors
- PSU (Public Sector Undertaking) Customers: Government enterprises requiring bulk lubricants
- B2B Focus: Long-standing relationships with industrial and PSU clients
- Contract Manufacturing Clients: Companies requiring private label or toll blending services
Revenue Model:
- Sales of branded lubricants under Sundrex brand
- Contract manufacturing revenue (toll blending, packaging, private labeling)
- B2B sales to industrial and PSU customers
- Subsidiary revenue: Ecolixir (re-refined base oils), OPRS (distribution)
Value Proposition:
- Manufacturing-Led Quality: In-house manufacturing ensuring quality control and process discipline
- B2B Relationships: Long-standing relationships with industrial and PSU customers providing revenue stability
- Contract Manufacturing: Diversified revenue through toll blending, packaging, private labeling
- Circular Economy Play: Ecolixir subsidiary focused on re-refined base oils (sustainability)
- Export Expansion: Plans to enter Middle East markets
- Product Diversification: Expanding into white oil and LLP-IP grade oils
Market Position:
- 15 years operational track record (2010-2025)
- Manufacturing presence in India
- Serving industrial and PSU customers domestically and in neighbouring countries
- Two wholly-owned subsidiaries for circular economy and distribution
Operations
Service Delivery:
- Manufacturing Base: India (exact location not disclosed in available data; registered office Kolkata)
- Geographic Focus: India and neighbouring countries
- Distribution: Via own brand, contract manufacturing, and subsidiary OPRS Enterprises
- Expansion Plans: Middle East exports, white oil and LLP-IP grade diversification
Financial Performance Highlights:
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin |
| FY25 (Mar 2025) | 69.12 | 5.45 | 7.89% |
| FY24 (Mar 2024) | 49.19 | 2.57 | 5.22% |
| FY23 (Mar 2023) | Data not disclosed | Data not disclosed | Lower |
Growth Trajectory:
- Revenue Growth (FY24-25): 40.52% YoY (₹49.19 cr to ₹69.12 cr) – strong 41% growth
- PAT Growth (FY24-25): 112.06% YoY (₹2.57 cr to ₹5.45 cr) – more than doubled (112% growth)
- Margin Expansion: PAT margin improved from 5.22% (FY24) to 7.89% (FY25)
- Strong operational leverage demonstrating scalability
Company Strengths
- Strong Financial Performance – 41% Revenue, 112% PAT Growth (FY24-25):
- Revenue grew 41% from ₹49.19 cr (FY24) to ₹69.12 cr (FY25)
- PAT more than doubled – 112% growth from ₹2.57 cr to ₹5.45 cr
- PAT margin expanded from 5.22% to 7.89% – 267 bps improvement
- Manufacturing-Led B2B Business with PSU Customer Base:
- In-house manufacturing ensuring quality control and process discipline
- B2B focus providing stable, long-term customer relationships
- PSU customers offering revenue visibility and lower payment risk
- Diversified Revenue Streams – Branded + Contract Manufacturing:
- Own brand lubricants under “Sundrex”
- Contract manufacturing services: toll blending, contract packaging, private labeling
- Multiple revenue channels reducing single-segment dependency
- Strategic Expansion Plans – Middle East Exports, White Oil Diversification:
- Export expansion to Middle East markets increasing addressable market
- Product diversification into white oil and LLP-IP grade oils
- Two subsidiaries: Ecolixir (re-refined base oils, circular economy) and OPRS (B2B distribution)
- Circular Economy Positioning – Ecolixir Subsidiary for Re-Refined Base Oils:
- Ecolixir Greentech focused on re-refined base oils aligned with sustainability
- EPR (Extended Producer Responsibility) compliance addressing regulatory requirements
- Circular economy model gaining traction amid environmental concerns
- India’s Growing Lubricants Market – Auto, Industrial Sectors Driving Demand:
- Automotive industry growth (passenger vehicles, commercial vehicles, 2-wheelers) driving lubricant demand
- Industrial expansion (manufacturing, power, construction, mining) requiring lubricants
- Government’s infrastructure push (roads, railways, ports) creating industrial lubricant opportunity
Key Risks & Challenges
- Intense Competition – Castrol, Gulf Oil, HP Lubricants, Tide Water Oil:
- Faces competition from dominant players: Castrol India, Gulf Oil Lubricants, HP Lubricants, Tide Water Oil (Veedol), Valvoline Cummins
- Large organized players have superior brand recognition, distribution networks, R&D capabilities
- Thousands of unorganized small blenders creating price-based competition
- Promoter Change Raises Questions – Mrs. Seema Sonthalia Excluded (May 2025):
- December 2024 DRHP included Mrs. Seema Sonthalia as promoter
- May 2025 revised DRHP (after IPO withdrawal) excludes her as promoter
- No public explanation for promoter structure change raising governance questions
- Limited Public Disclosure – Minimal Financial Data, No Detailed Fund Utilization:
- Very limited financial data publicly available (only FY24-25 revenue and PAT)
- No detailed breakdown of fund utilization objects (working capital amount, capex amount, debt amount not specified)
- Manufacturing location, capacity, detailed customer list not disclosed
- Limited transparency for investors
- Raw Material Price Volatility – Base Oil Dependency on Crude Oil Prices:
- Lubricants manufacturing highly dependent on base oils (refined from crude oil)
- Base oil prices volatile based on global crude oil prices
- Limited pricing power to pass on cost increases immediately to B2B/PSU customers with fixed contracts
- Small Scale & IPO Withdrawal History – ₹69 Cr Revenue, December 2024 Withdrawal:
- Revenue of ₹69.12 cr (FY25) small compared to listed lubricant giants (Castrol ₹4,000+ cr)
- Company withdrew IPO proposal in December 2024, revised and resubmitted in May 2025
- IPO withdrawal history raises questions about readiness, valuation, or other issues
- Regulatory & Environmental Risks – EPR, Emission Norms, Sustainability:
- Lubricants industry subject to environmental regulations, EPR compliance
- Shift to synthetic and bio-based lubricants requiring R&D investment
- BS-VI emission norms requiring higher-grade lubricants (opportunity but also adaptation cost)
- Disposal and recycling regulations for used oils creating compliance burden
Disclaimer
This information is based on publicly available sources. Investors should conduct their own research and consult financial advisors before investing.
The company reported strong performance (FY25: 41% revenue growth to ₹69.12 cr, 112% PAT growth to ₹5.45 cr, 7.89% PAT margin) as 15-year manufacturing-led B2B lubricants company serving industrial/PSU customers with contract manufacturing services (toll blending, packaging, private labeling), two subsidiaries (Ecolixir circular economy, OPRS distribution), expansion plans (Middle East exports, white oil diversification), but faces risks including intense competition (Castrol, Gulf Oil, HP Lubricants giants), promoter change with Mrs. Seema Sonthalia excluded in May 2025 revised DRHP after Dec 2024 IPO withdrawal raising governance questions, limited public disclosure with minimal financial data and no detailed fund utilization breakdown, raw material price volatility (base oil dependent on crude), small scale (₹69 cr revenue), and regulatory/environmental compliance risks (EPR, emission norms). SME listing on NSE Emerge.
