In July 2025, India’s IPO market continues to show strong potential with Patel Chem Specialities Ltd. entering the fray. The company, a key player in manufacturing and exporting pharmaceutical excipients and specialty chemicals, is all set to raise ₹58.80 crores through its IPO, which opens on July 25, 2025. Below is a comprehensive look into Patel Chem Specialities Ltd., its IPO details, and the financial outlook.
About Patel Chem Specialities Ltd.
Patel Chem Specialities Ltd. (PCSL), founded in 2008, specialises in the production of pharmaceutical excipients and specialty chemicals. The company manufactures essential chemicals used across various industries, including pharmaceuticals, food, cosmetics, and industrial applications. Its products are utilised as binders, disintegrants, thickeners, stabilisers, and gelling agents.
Patel Chem operates its manufacturing facilities in Vatva, Ahmedabad, and Talod, Himmatnagar, following strict quality control standards, ensuring compliance with international certifications like US-DMF and GMP. The company has a production capacity of over 7,200 MT annually and specialises in cellulose-based excipients.
PCSL’s product portfolio includes:
- Rheollose® (Sodium Carboxymethyl Cellulose)
- Disolwell® (Croscarmellose Sodium)
- Swellcal® (Calcium Carboxymethyl Cellulose)
- AmyloTab™ (Pregelatinized Starch)
The company has expanded its reach globally, serving regions like East Asia, Europe, North America, and Southeast Asia, with a reputation for delivering high-quality products.
Patel Chem Specialities Ltd. IPO Details
The Patel Chem Specialities IPO is a bookbuilding IPO, aiming to raise ₹58.80 crore through the issue of 70.00 lakh shares. The price band has been set between ₹82 to ₹84 per share.
- IPO Open Date: July 25, 2025
- IPO Close Date: July 29, 2025
- Price Band: ₹82 to ₹84 per share
- Lot Size: 1,600 shares
- Total Issue Size: ₹58.80 crore
Important IPO Timeline
| Event | Date |
| IPO Open Date | July 25, 2025 |
| IPO Close Date | July 29, 2025 |
| Tentative Allotment Date | July 30, 2025 |
| Refund Initiation | July 31, 2025 |
| Credit of Shares to Demat | July 31, 2025 |
| Tentative Listing Date | August 1, 2025 |
| Cut-off time for UPI mandate | 5 PM on July 29, 2025 |
Key IPO Details
| Particulars | Details |
| Face Value | ₹10 per share |
| Issue Price Band | ₹82 to ₹84 per share |
| Lot Size | 1,600 Shares |
| Sale Type | Fresh Capital |
| Total Issue Size | 70,00,000 shares (aggregating up to ₹58.80 Cr) |
| Reserved for Market Maker | 3,53,600 shares (aggregating up to ₹2.97 Cr) Globalworth Securities Limited |
| Net Offered to Public | 66,46,400 shares (aggregating up to ₹55.83 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE SME |
| Share Holding Pre Issue | 1,78,70,000 shares |
| Share Holding Post Issue | 2,48,70,000 shares |
Lot Size of Patel Chem Specialities Ltd. IPO
| Application Type | Lots | Shares | Amount |
| Retail (Min) | 2 | 3,200 | ₹2,62,400 |
| Retail (Max) | 2 | 3,200 | ₹2,62,400 |
| S-HNI (Min) | 3 | 4,800 | ₹4,03,200 |
| S-HNI (Max) | 7 | 11,200 | ₹9,40,800 |
| B-HNI (Min) | 8 | 12,800 | ₹10,75,200 |
Patel Chem Specialities Ltd. Financials
The Patel Chem Specialities IPO is backed by strong financials. The company has demonstrated growth in revenue and profit, with a 28% increase in revenue and a 38% rise in profit after tax (PAT) for FY24.
Key Performance Indicators (as of March 31, 2025)
- Return on Equity (ROE): 29.85%
- Return on Capital Employed (ROCE): 36.26%
- Debt/Equity: 0.42
- Return on Net Worth (RoNW): 24.32%
- Profit After Tax (PAT) Margin: 10.01%
- EBITDA Margin: 14.97%
- Price-to-Book Value: 4.11
- Pre-IPO EPS: ₹5.91
- Post-IPO EPS: ₹4.25
- Pre-IPO P/E: 14.21
- Post-IPO P/E: 19.77
Financial Snapshot
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets (₹ Cr) | 65.31 | 46.97 | 37.08 |
| Revenue (₹ Cr) | 105.55 | 82.72 | 69.75 |
| Profit After Tax (₹ Cr) | 10.57 | 7.66 | 2.89 |
| EBITDA (₹ Cr) | 15.80 | 12.02 | 5.83 |
| Net Worth (₹ Cr) | 35.40 | 19.52 | 11.87 |
| Reserves and Surplus (₹ Cr) | 17.53 | 18.52 | 10.87 |
| Total Borrowing (₹ Cr) | 14.85 | 15.46 | 11.79 |
Patel Chem Specialities Ltd.: Industry Outlook
The pharmaceutical excipients and specialty chemicals industry in India is expected to grow rapidly, driven by the increasing demand for high-quality pharmaceutical products, food, cosmetics, and industrial chemicals. Patel Chem is well-positioned in this sector with its comprehensive range of excipients and its ability to meet international certifications like US-DMF and GMP.
- The global chemical industry is expanding, especially in pharmaceutical excipients, where Patel Chem’s products, such as Rheollose and Disolwell, are in high demand.
- As the pharmaceutical sector in India continues to grow, Patel Chem is poised to benefit from both domestic and international markets, particularly in East Asia, Europe, and North America.
- The company’s focus on quality control and its robust manufacturing setup makes it a reliable player in the highly competitive chemical industry.
Use of IPO Proceeds
| Purpose | Expected Amount (₹ Cr) |
| Funding the capital expenditure requirement of the Company | ₹43.1 |
| General corporate purposes | Balance |
Conclusion
Patel Chem Specialities Ltd. offers an attractive investment opportunity for those seeking exposure to the pharmaceutical excipients and specialty chemicals market. The company’s strong growth trajectory, coupled with its solid financials and market positioning, makes it an appealing option for long-term investors.
However, the relatively high debt-equity ratio and competitive nature of the industry should be considered by potential investors. Those looking for exposure to the pharmaceutical supply chain may find this IPO to be a suitable choice.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
