Gujarat Polysol Chemicals Limited will float an IPO aggregative to Rs 414 crore, containing new shares worth Rs 87 crore and an offer for equities up to Rs 327 crore. They are one of the leading chemical manufacturers for various industries.
The company manufactures chemicals used in the dye, agro, and leather industries. They are among the leading suppliers of dispersers for a wide variety of Indian enterprises.
The company produces chemicals and intermediaries that can be classified based on end-user industry as
- Infra-tech (construction)
- Agro-chemicals like pesticide formulation
- Dyes, chemicals, and textile chemicals
- Leather chemicals
Gujarat Polysol Chemicals also produces polycarboxylate ether (PCE) liquids. They are among the few global manufacturers of PCE powder and the only one in India.
Gujarat Polysol Chemicals Ltd. Objective
- The fund will be used to repay and prepay certain market borrowings and for general corporate purposes.
Why should you invest in Gujarat Polysol Chemicals Ltd. IPO?
Here are our top reasons.
- The company has a diversified product portfolio and caters to various end-user industries.
- They have three manufacturing facilities in India with a total installed capacity of 130,400 MT per annum.
- Besides manufacturing chemicals, the company also participates in trading chemical raw materials and edible oil.
IPO Financials
| Particulars | FY21 | FY20 |
|---|---|---|
| Revenue From Operation | 3,796.06 | 4,404.56 |
| EBITDA | 642.99 | 386.81 |
| EBITDA Margin (%) | 16.94 | 8.78 |
| Profit After Tax | 398.39 | 201.85 |
| EPS | NA | NA |
| ROE | 28.08 | 21.57 |
Know before investing
Strengths
3They have a solid and diversified customer base and formed long-term relationships with several Swiss, US and German multinational companies.
They are one of the leading chemical manufacturers and the only producer of PCE in India.
The company relies on continuous R&D for developing innovative new formulations and products.
Risks
3The company relies on a few customers for a significant part of its revenue.
Failing to maintain and renew long-term customer relationships can impact future cash flow.
The lack of long-term contracts with suppliers can impact future revenue income.
Peer Comparison
| Name of Company | Revenue from Operation | EPS | P/E | Dividend Yield |
|---|---|---|---|---|
| Himadri Speciality Chemicals Ltd. | 16,794.58 | 1.13 | 36.86 | - |
| BASF India Ltd. | 95,583.40 | 127.7 | 16.21 | - |

