Renol Polychem IPO Opens Today with ₹25.77 Cr Issue; Price Band Set at ₹100–₹105 Per Share

Mumbai, 31 July 2025: Renol Polychem Ltd., a manufacturer of colour masterbatches and polymer compounds, has opened its initial public offering (IPO) for public subscription today. The ₹25.77 crore issue is entirely a fresh offering of 24.54 lakh equity shares through the book-building route. The IPO comes at a price band of ₹100 to ₹105 per share and will close on 4 August 2025. The shares are proposed to be listed on the NSE SME platform on 7 August 2025.

Renol Polychem’s ₹25.77 Cr IPO Structure: Retail Share Allotment Leads at 53.59%

The IPO comprises a total of 24,54,000 equity shares, all offered as fresh capital with no offer-for-sale component. The structure of the issue is designed to cater to a diverse base of investors, including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), retail investors, and anchor investors. Here’s the detailed structure:

• Retail Individual Investors (RIIs): 13,15,200 shares (53.59%)
• Non-Institutional Investors (NIIs): 3,49,200 shares (14.23%)
• Qualified Institutional Buyers (QIBs): 6,40,800 shares (26.11%), including 2,56,800 shares (10.46%) for QIB (Ex-Anchor)
• Anchor Investors: 3,84,000 shares (15.65%), raising ₹4.03 crore on 30 July 2025
• Market Maker Reservation: 1,48,800 shares (6.06%)

IPO Timelines Move Swiftly Towards Listing on 7 August 2025

The IPO follows a tight schedule, ensuring minimal delay from closure to listing. The timelines are as follows:

• IPO Opening Date: 31 July 2025 (Thursday)
• IPO Closing Date: 4 August 2025 (Monday)
• Final Allotment: 5 August 2025 (Tuesday)
• Refund Initiation: 6 August 2025 (Wednesday)
• Demat Credit of Shares: 6 August 2025 (Wednesday)
• Expected Listing on NSE SME: 7 August 2025 (Thursday)
• UPI Mandate Confirmation Deadline: 5 PM on 4 August 2025

Renol Polychem Ltd. Financial Performance Shows 859% Surge in Revenue in FY25

Renol Polychem has reported robust financial performance, witnessing an 859% jump in revenue between FY24 and FY25. Revenue increased from ₹6.52 crore in FY24 to ₹62.56 crore in FY25. Profit after tax also rose significantly by 226%, reaching ₹5 crore in FY25 compared to ₹1.53 crore in the previous year. EBITDA improved to ₹7.07 crore from ₹2.18 crore, while total assets stood at ₹23.41 crore as of March 31, 2025.

The company’s net worth also strengthened, rising to ₹13.33 crore from ₹8.69 crore in FY24. Debt remained moderate at ₹6.95 crore in FY25 compared to ₹2.58 crore the previous year, indicating a manageable gearing position.

Key Performance Metrics Reflect Operational Efficiency and Financial Strength

Renol Polychem’s key financial indicators reveal its strong fundamentals. As of March 31, 2025, the company posted a Return on Equity (ROE) of 45.37% and a Return on Capital Employed (ROCE) of 64.18%. The PAT margin stood at 8.02% and the EBITDA margin at 11.36%. The Debt-to-Equity ratio was 0.52, suggesting low leverage. Price-to-Book value stood at 4.32.

The company’s EPS (Earnings Per Share) before the issue was ₹9.10 and post-issue EPS is estimated at ₹8.62. The P/E (Price-to-Earnings) ratio pre-issue is 11.54, which is marginally lower than the post-issue P/E of 12.18.

Peer Comparison Highlights Renol Polychem’s Competitive Return Metrics

In comparison to peers such as Multibase India, Captain Polyplast, and R M Drip and Sprinklers Systems, Renol Polychem presents an attractive RoNW and EPS at competitive valuations. While Multibase India reported an RoNW of 13.76% and a P/E of 23.85, and Captain Polyplast an RoNW of 25.40% with a P/E of 15.07, Renol Polychem outperforms both with a 45.37% RoNW and a P/E of just 11.54. Though R M Drip posted a higher RoNW of 41.45%, its valuation remained steep with a P/E of 63.69, giving Renol Polychem an edge in terms of valuation-to-returns ratio.

Strong Promoter Holding Pre-IPO and Broadening Post-Listing Strategy

The company is promoted by Mr. Bhaveshbhai Mansukhbhai Harsoda and Mr. Naitik Bhaveshbhai Harsoda. Promoter holding before the IPO stood at 99.99% and will reduce to 69.11% post-issue, indicating a healthy equity dilution strategy that still retains promoter confidence.

IPO Proceeds Target Machinery Expansion, Working Capital and Debt Reduction

Renol Polychem aims to utilise the IPO proceeds to support its operational expansion. The company plans to invest ₹5.6 crore in capital expenditure for new machinery to increase production capacity. An additional ₹10 crore will be allocated for debt repayment. The largest portion, ₹15.15 crore, is earmarked to meet working capital requirements, with the remaining funds being set aside for general corporate purposes.

Diversified Product Portfolio and Industrial Applications Support Growth Prospects

Renol Polychem offers a comprehensive range of colour masterbatches, filler masterbatches, and polymer additives that cater to a wide range of sectors, including automotive components, consumer goods, electronics, agriculture, and packaging. Its extensive product catalogue features custom shades and formulations, tailored for moulding, extrusion, and film applications. As of September 30, 2024, the company employed 15 individuals across departments, reflecting its lean but specialised operational setup.

With a sharp rise in revenue and profitability, competitive valuation metrics, and strategic use of IPO proceeds, Renol Polychem Ltd.’s public issue presents a compelling opportunity for investors seeking exposure to India’s growing polymer processing and masterbatch sector. The listing on NSE SME, scheduled for 7 August 2025, will be closely watched for investor response and market performance.

REF:

https://nsearchives.nseindia.com/content/ipo/ANCHOR_RNPL.zip

https://nsearchives.nseindia.com/content/ipo/RHP_RNPL.zip

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