Chemkart India IPO Subscribed Nearly 6 Times on Final Day

Mumbai, 9 July 2025: Chemkart India Limited’s IPO witnessed an overwhelming response from investors, closing with an overall subscription of 5.91 times on the third and final day of bidding. The IPO, which opened on 7 July and closed on 9 July 2025, generated robust interest across all categories, particularly from Qualified Institutional Buyers (QIBs), signalling strong market confidence in the company’s growth potential.

Institutional Investors Drive Demand with 13.69x Oversubscription

Qualified Institutional Buyers led the surge with a remarkable 13.69 times subscription, bidding for over 83.47 lakh shares against an allocation of just over 6 lakh shares. This interest translated into a total bid amount of ₹207.03 crore, reinforcing investor faith in the company’s business model and industry relevance.

Strong Response from HNIs and Retail Investors Elevates IPO Momentum

High Net-Worth Individuals (HNIs) also contributed to the IPO’s success, subscribing 5.64 times the allotted quota of 4.63 lakh shares. Individual retail investors, though more measured, subscribed 1.63 times their reserved shares, indicating balanced retail participation.

• Anchor investors subscribed to their full allocation of 9.11 lakh shares.
• Market maker bids matched the full quota of 1.66 lakh shares.
• A total of 1,975 applications were received across all investor classes.
• Cumulative bids amounted to ₹315.41 crore.

Rapid Climb in Subscriptions Over Three Days

Chemkart India’s IPO saw growing traction with each passing day. On Day 1, the issue had an overall subscription of just 0.59 times, driven largely by early HNI interest. By Day 2, interest from QIBs surged, pushing the total subscription to 1.50 times. The final day saw the issue reach full momentum, culminating in a 5.91 times subscription.

Issue Structure and Key Offer Details

The IPO, with a total issue size of ₹80.08 crore, consists of a fresh issue of 26 lakh shares (worth ₹64.48 crore) and an offer for sale of 6.29 lakh shares (worth ₹15.60 crore). Chemkart India’s price band was fixed at ₹236 to ₹248 per share. The minimum lot size for retail investors was 1,200 shares, requiring an investment of ₹2,83,200. HNIs had to apply for a minimum of 3 lots, amounting to ₹4,46,400.

• Total issue size: 32.29 lakh shares
• Net public offer: 30.63 lakh shares
• Shares reserved for market maker: 1.66 lakh shares
• Listing expected on BSE SME on 14 July 2025
• Allotment finalisation date: 10 July 2025

Business Overview: Strength in Health and Nutrition Ingredients

Chemkart India Limited is a Mumbai-based distributor of premium food and health ingredients. It caters to the B2B market and supplies raw materials used in the manufacture of sports nutrition, dietary supplements, vitamins, and herbal formulations. The company stands out for its focus on quality, reliability, and customer-centric supply chain operations.

It operates a 28,259.16 sq. ft. hygienic facility in Bhiwandi, Mumbai, offering services including grinding, blending, packaging, sealing, and labelling.

Key product categories include:

• Amino Acids: Essential building blocks for proteins and metabolic processes.
• Health Supplements: Nutrient-rich products aimed at boosting wellness.
• Herbal Extracts: Plant-based components known for therapeutic benefits.
• Nucleotides: Bio-compounds aiding immunity and gut health.
• Proteins: Crucial for muscle repair and immune strength.
• Sports Nutrition: Performance-enhancing and recovery-oriented products.
• Vitamins: Essential micronutrients supporting various physiological functions.

Leadership and Market Role

Smart Horizon Capital Advisors Private Limited is the lead book-running manager for the IPO, while Bigshare Services Pvt Ltd serves as the registrar. Alacrity Securities Ltd. has taken on the role of market maker.

With a solid foundation in ingredient distribution and a promising response to its IPO, Chemkart India is poised to strengthen its foothold in India’s growing health and nutrition industry.

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