Faith Industries IPO

Faith Industries Limited IPO is a fixed-price issue comprising 55.02 lakh equity shares. The IPO consists of a fresh issue of up to 44.16 lakh equity shares and an offer for sale (OFS) of up to 10.86 lakh equity shares.

Smart Horizon Capital Advisors Private Limited is the book-running lead manager to the issue, and Bigshare Services Private Limited is the registrar. The equity shares are proposed to be listed on the BSE SME. Key details such as the IPO dates, price band and lot size are yet to be announced. For detailed information on the company's financials, business operations, and associated risks, investors are advised to refer to the Faith Industries IPO DRHP.

About Faith Industries Limited

Faith Industries Limited was originally incorporated as Faith Exports Private Limited on March 1, 1995, under the Companies Act, 1956. The company subsequently underwent a name change to Faith Industries Private Limited and was later converted into a public limited company as Faith Industries Limited.

The company operates in the speciality chemicals sector and is engaged in the development, formulation, sourcing, marketing, and supply of PVC and CPVC additives. It primarily functions as a business-to-business (B2B) enterprise, supplying products to industrial processors that use these additives as key raw materials in the manufacturing of various end-use products.

Faith Industries offers a diversified portfolio comprising PVC and CPVC stabilisers, PVC and CPVC lubricants, plasticisers including Epoxidised Soybean Oil (ESBO), impact modifiers, processing aids, metallic stearates, liquid additives, and other speciality performance chemicals. These products are designed to improve processability, thermal stability, durability, flexibility, and overall performance of PVC and CPVC compounds and finished products.

The company serves customers across multiple industries, including infrastructure and construction, industrial and packaging, wire and cable, and consumer goods. Its products are widely used in the manufacture of pipes and fittings, profiles, cables, packaging materials, and several other PVC and CPVC applications.

Faith Industries focuses on developing customised formulations and technical solutions based on customer requirements and industry specifications. Along with supplying speciality chemical products, the company provides technical support and application-based assistance to customers, helping strengthen long-term business relationships and expand its presence in the PVC and CPVC additives market.

Industry Outlook

• India's speciality chemicals industry continues to benefit from increasing domestic manufacturing activity and growing demand from sectors such as infrastructure, construction, packaging, electrical cables, and consumer products.
• PVC and CPVC additives play a critical role in enhancing the performance, durability, thermal stability, and processing efficiency of polymer-based products, supporting their widespread adoption across industrial applications.
• Rapid urbanisation, housing development, water infrastructure projects, and expansion of utility networks are driving demand for PVC and CPVC pipes, fittings, profiles, and related products, which in turn supports growth in additive consumption.
• The wire and cable industry remains an important demand driver for PVC compounds and speciality additives as power transmission, renewable energy, and telecommunications infrastructure continue to expand.
• Increasing focus on product quality, performance standards, and regulatory compliance is encouraging manufacturers to utilise advanced stabilisers, lubricants, processing aids, and speciality chemical formulations.
• The industry is witnessing a gradual shift towards non-lead and environmentally conscious additive solutions, creating opportunities for manufacturers capable of developing innovative and compliant products.
• Technical expertise, product customisation capabilities, customer relationships, and the ability to offer a broad portfolio of speciality additives are becoming key competitive differentiators within the sector.

Faith Industries IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

1. Repay a portion of the company's outstanding secured borrowings to strengthen its balance sheet.
2. Prepay certain secured loans, thereby reducing future interest costs and financial obligations.
3. Improve the overall capital structure through debt reduction.
4. Enhance financial flexibility by lowering leverage levels.
5. Strengthen cash flow management through reduced debt servicing commitments.
6. Allocate a portion of the proceeds towards general corporate purposes.
7. Support future business growth initiatives and operational requirements through general corporate funding.

Financial Performance of Faith Industries Limited

Faith Industries Limited Peer Details Comparison

Strengths and Opportunities of Faith Industries IPO

1. Established operating track record with over 30 years of experience in the speciality chemicals industry.
2. Diversified portfolio of PVC and CPVC additives catering to multiple industrial applications.
3. Strong presence in essential end-user industries such as infrastructure, construction, packaging, wire and cable, and consumer goods.
4. Capability to develop customised formulations and technical solutions based on customer requirements.
5. B2B business model supported by long-standing customer relationships.
6. Growing demand for PVC and CPVC products driven by infrastructure development and urbanisation trends in India.
7. Opportunity to benefit from increasing adoption of speciality additives that improve product performance and regulatory compliance.
8. Ability to expand product offerings and strengthen market penetration through continuous product development and innovation.
9. Debt reduction through IPO proceeds could improve profitability ratios and support future expansion initiatives.

Risks and Threats of Faith Industries IPO

1. The company depends significantly on demand from industries such as construction, infrastructure, packaging, and wire and cable, and any slowdown in these sectors could impact revenue.
2. Volatility in raw material prices may adversely affect profit margins if cost increases cannot be passed on to customers.
3. Operations are exposed to intense competition from organised and unorganised players in the speciality chemicals market.
4. Any disruption in the supply chain or procurement of key raw materials may affect production and fulfilment capabilities.
5. The business operates within a regulated industry and changes in environmental, safety, or chemical regulations could increase compliance costs.
6. Customer concentration risks could affect financial performance if major customers reduce purchases or terminate relationships.
7. Manufacturing operations face risks relating to fire, equipment failure, accidents, and other operational disruptions.
8. The company may be adversely affected by changing industry trends, technological developments, or shifts in customer preferences.
9. Economic slowdowns, adverse market conditions, or weakness in end-user industries could negatively impact business growth, financial performance, and cash flows.

Faith Industries IPO Reservation

Faith Industries IPO Promoter Holding

The promoters of the company are Kankariya Karan Virendra, Rajeev Kankariya and Fine Investment Private Limited.

Faith Industries IPO Prospectus

• Faith Industries IPO DRHP

Faith Industries IPO Registrar and Lead Managers

Faith Industries IPO Lead Managers

• Smart Horizon Capital Advisors Private Limited

Registrar for Faith Industries IPO

Bigshare Services Private Limited

• Contact Number: 8657578989
• Email Address: ipo@bigshareonline.com

Faith Industries IPO Registrar

How To Apply for Faith Industries IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Faith Industries IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the Faith Industries IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

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Contact Details of Faith Industries IPO

Registered Office: 701, Shapth 1S G Road, Ahmedabad, Gujarat, 380015.

Phone: 7874030500

E-mail: investor@faithind.com