Renol Polychem IPO mention today. GMP indicates a mild premium

Renol Polychem will debut on Thursday at the NSE SME platform after a successful subscription period in which the issue has been subscribed to 6.83 times in general. Prior to the offer, the IPO recommends a Gray Market Premium (GMP) of approximately 3%, which suggests a modest list profit of approximately RS 3-4 compared to the issue price of RS 105 per share.

The IPO, which was completely a new edition of 24.54 Lakh shares, was aimed at increasing RS 25.77 Crore. The issue received a healthy interest rate between investor categories, with subscriptions of 8.41x by QIBS, 6.89x by NIIS and 6.51x by investors.

Renol Polychem is busy making color stimulans, plastic pigments, industrial chemicals and polymer additives, catering for sectors such as plastic packaging, automotive, consumer goods, electronics and agriculture.

The turnover of the company grew by 859% JoJ in FY25 to RS 62.56 Crore, while the net profit increased by 226% JoJ to RS 5 Crore. It reported a pat -margin of 8.02% and ROCE of 64.18%, indicating operational efficiency.

The yield of the IPO will be used to finance machines purchases (RS 5.6 CRORE), working capital (RS 15.15 CRORE) and reimbursement of certain loans (RS 1 CRORE).

After the list, the market capitalization of the company is on RS 83.41 Crore. The modest GMP indicates cautious optimism for market participants, with attention that is likely to shift to the financial delivery of the company in the coming quarters (((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)