Unilex Colors and Chemicals Make Its Debut
On October 3, Unilex Colors and Chemicals, a prominent player in the chemical sector, made its much-anticipated debut on the NSE SME platform. However, the listing turned out to be a letdown for investors, as the shares opened at Rs 89, reflecting a modest premium of just 2.2% over the IPO’s upper price band of Rs 87.
IPO Details and Subscription
The IPO of Unilex Colors and Chemicals raised Rs 31.32 crore, opening for subscription on September 25 and concluding on September 27. During this period, the company issued 3.6 million new shares to the market. The price band for the bidding was set between Rs 82 to Rs 87 per share, and transactions were conducted in lots of 1,600 shares each. Before the IPO went live, Unilex garnered considerable interest from anchor investors, securing Rs 8.88 crore.
Product Portfolio and Operations
Unilex Colors and Chemicals specializes in the manufacture of pigments and food colors, alongside trading in various chemicals. Its products cater to both domestic and international markets, marketed under the brand name ‘Unilex’. The company’s manufacturing facility is strategically located in Palghar, Maharashtra, which supports its operational efficiency and distribution capabilities. The company’s promoters include industry veterans such as Purushottam Brijlal Sharma, Narendra Parameshwarappa Kotehal, Aditya Sharma, and others.
Financial Performance Overview
In the financial year 2024, Unilex Colors and Chemicals reported impressive figures, with total revenue reaching ₹149.32 crore and a net profit of ₹6.16 crore. This shows a substantial increase from the previous year, where the revenue stood at ₹144.41 crore, and the profit was approximately ₹5 crore. However, it is important to note that the total borrowings of the company increased to ₹21.61 crore in FY2024 from ₹11.66 crore in the previous fiscal year, reflecting a growing reliance on external funds for expansion.
Conclusion
The flat listing of Unilex Colors and Chemicals serves as a reminder of the volatile nature of the stock market, especially within the SME sector. While the financial indicators suggest a positive trend, investors should exercise caution and conduct thorough research before making investment decisions. Always seek expert advice and remember that investing in stock markets carries inherent risks.
Disclaimer: The information provided in this article is for informational purposes only. Investing in financial markets is subject to market risks. Always consult with financial experts prior to making investment decisions. Moneycontrol does not provide personalized investment advice.
