Unilex Colours and Chemicals made its debut on the stock market with its IPO listing on September 30, 2023. The company’s shares opened at ₹89 on the NSE SME platform, marking a modest premium of only 2.3% above its IPO price of ₹87. This initial performance indicates a cautious reception from investors.
The SME IPO attracted considerable interest, being valued at ₹31.32 crore. The public offering was open for subscription from September 25 to September 27, priced at a range of ₹82 to ₹87 per share.
Significant demand characterized the Unilex Colours IPO, which was oversubscribed by 35.03 times. Investors placed bids for 8.36 crore shares against the 23.87 lakh shares available. The retail investor segment demonstrated robust enthusiasm with a subscription rate of 35.11 times, while Non-Institutional Investors (NII) showed even more interest, leading with 60.74 times subscription. Qualified Institutional Buyers (QIBs) subscribed at a rate of 15.58 times.
About Unilex Colours IPO
The Unilex Colours IPO comprises an entirely fresh issue of 36 lakh shares, with no component for an offer for sale. Retail investors were required to apply for a minimum of 1,600 shares, translating to an investment of ₹1.39 lakh. The allotment date was also designated as September 30.
The company intends to allocate the proceeds from this IPO toward several strategic goals. These include enhancing working capital, repaying certain borrowings, and supporting general corporate purposes, which collectively aim to strengthen the company’s financial health and operational efficiencies.
Hem Securities Limited is recognized as the book running lead manager for the Unilex Colours and Chemicals IPO, while Link Intime India Private Ltd serves as the registrar. Additionally, the market maker for this IPO is Hem Finlease, ensuring liquidity and facilitating smoother trading for investors.
About the Company
Founded in March 2001, Unilex Colours and Chemicals Limited specializes in the manufacturing of pigments and trading of chemicals, as well as creating food colors. The company markets its extensive range of products under the “Unilex” brand, catering to both domestic and international markets. Their offerings include diverse pigment solutions tailored for various industries and a variety of packaging options, such as multi-layer paper bags, corrugated boxes, HDPE and HDPE-coated bags, multi-layer liners, HM covers, wooden pallets, and jumbo bags.
From a financial perspective, Unilex Colours has shown promising growth, recording a 3% increase in revenue and a remarkable 24% rise in profit after tax (PAT) from the fiscal year ending March 31, 2023, to the fiscal year ending March 31, 2024. This performance underscores the company’s potential for ongoing growth and profitability.
