Patel Chem Specialities IPO to list today: GMP hints at solid debut

The SME IPO of Patel Chem Specialities is set to debut on the BSE SME platform on August 1 and market chatter suggests a positive listing in store. The issue, which saw whopping 167.32 times overall subscription, is commanding a grey market premium (GMP) of Rs 24, implying a potential listing price of Rs 108, nearly 28% above the issue price of Rs 84.

The IPO had opened on July 25 and closed on July 29, with the allotment finalized on July 30. The overwhelming demand across investor categories saw retail investors subscribing a staggering 173.03 times, NIIs bidding 236.62 times, and QIBs joining in with 105.27 times subscription—underscoring strong appetite for niche chemical plays in the SME space.

The IPO comprised a fresh issue of 70 lakh shares, raising Rs 58.8 crore. Anchor investors had already infused Rs 16.69 crore a day before the issue opened.

The company intends to use the proceeds primarily for capital expenditure, particularly in augmenting its excipients manufacturing capacity, and for general corporate purposes.

Founded in 2008, Ahmedabad-based Patel Chem Specialities specializes in pharmaceutical excipients and specialty chemicals like sodium carboxymethyl cellulose, croscarmellose sodium, pregelatinized starch, and calcium CMC—used in pharma, food, and cosmetic industries.

Its globally certified manufacturing facilities in Gujarat cater to clients across East Asia, Europe, North America, and Southeast Asia.

On the financial front, the company reported a 28% jump in revenue to Rs 105.55 crore and a 38% surge in net profit to Rs 10.57 crore for FY25.

All eyes are now on how the listing pans out on Friday, with the strong subscription and upbeat GMP pointing to a potentially energetic debut.

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