Phychem Technologies IPO

Phychem Technologies IPO is a book-built issue worth ₹14.58 crore. The IPO consists entirely of a fresh issue of 27.00 lakh equity shares.

Hem Securities Limited is the book-running lead manager to the issue, and MUFG Intime India Private Limited is the registrar. For detailed information on the company's financials, business operations, and associated risks, investors are advised to refer to the Phychem Technologies IPO DRHP.

About Phychem Technologies Limited

Phychem Technologies Limited was originally incorporated as Phychem Technologies Private Limited on June 13, 2013, under the Companies Act, 1956. Subsequently, the company was converted into a public limited company and renamed Phychem Technologies Limited on August 18, 2025.

The company is primarily engaged in the manufacturing of rotational moulding (roto moulding) compounds, which serve as a key raw material for producing a wide range of hollow plastic products through the rotational moulding process. Its product portfolio consists of customised polyethylene-based compounds formulated using Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), and other specialty additives. These compounds are supplied in powder and granulated forms to rotational moulding manufacturers across various industries.

Phychem Technologies caters to a diverse range of end-use applications, including water and chemical storage tanks, industrial containers, automotive components, furniture, sanitation products, toys, and other specialised plastic products. Alongside its core manufacturing business, the company also operates in custom moulding, rotolining services, toll pulverising, and trading of specialised products and equipment used in the rotational moulding industry.

The company operates its manufacturing facility at Dindori in Nashik, Maharashtra, and has established both domestic and international market presence. Its export network extends across multiple countries, including Bahrain, Bangladesh, Kuwait, Mauritius, Saudi Arabia, South Africa, Thailand, Turkey, the UAE, and several other regions. Exports contributed over 28% of the company’s revenue in FY2025.

Phychem Technologies focuses on product customisation, quality control, and operational efficiency to meet the specialised requirements of rotational moulding manufacturers. The company’s growth strategy includes expanding manufacturing capabilities through new machinery, strengthening its product portfolio, increasing export penetration, and enhancing production efficiencies to support future business growth.

Industry Outlook

• India’s plastics industry has emerged as one of the fastest-growing manufacturing segments, supported by increasing domestic consumption, infrastructure development, agricultural applications, and rising demand for polymer-based products across industries.
• India ranked among the leading exporters of plastics globally, with plastic exports reaching approximately ₹89,296 crore (US$10.34 billion) during FY2025 up to January 2025, reflecting growing international demand for Indian plastic products.
• The rotational moulding industry continues to benefit from increasing usage of plastic water tanks, industrial containers, sanitation products, and customised moulded solutions across residential, commercial, and industrial sectors.
• Growing investments in water storage infrastructure, agriculture, chemical storage, and waste-management solutions are expected to support long-term demand for roto moulded products and related compounds.
• Demand for customised compounds with enhanced properties such as anti-static, flame-retardant, foam, flexible, and UV-resistant characteristics is creating opportunities for specialised compound manufacturers.
• The industry is witnessing increasing focus on product quality, operational efficiency, sustainability, and regulatory compliance, encouraging manufacturers to invest in modern equipment and advanced production processes.
• Export opportunities remain attractive as Indian manufacturers continue expanding into emerging and developed markets, supported by competitive production costs and growing global demand for rotational moulding products.

Phychem Technologies IPO Objectives

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

• Repayment and/or prepayment, in full or in part, of certain outstanding borrowings amounting to approximately ₹300 lakh, which is expected to strengthen the balance sheet and reduce finance costs.
• Funding capital expenditure towards the procurement and installation of additional plant and machinery, including rotational moulding machines, pulverising systems, extruders, transformers, testing equipment, and other related infrastructure.
• Enhancing manufacturing capabilities and improving production efficiencies by expanding installed capacity and reducing operational downtime across various production stages.
• Funding the working capital requirements of the company with an allocation of approximately ₹300 lakh to support future growth and increasing operational needs.
• Supporting business expansion through improved inventory management, trade receivable funding, and overall operational flexibility.
• Strengthening the company’s ability to meet growing domestic and export demand through increased production and operational scalability.
• Meeting general corporate purposes, including strategic business requirements and future growth initiatives.

Financial Performance of Phychem Technologies Limited

Strengths and Opportunities of Phychem Technologies IPO

1. The company operates in a specialised niche segment of rotational moulding compounds with customised product offerings.
2. It has demonstrated consistent growth in revenue, with total income increasing from ₹4,318.67 lakh in FY2023 to ₹5,111.33 lakh in FY2025.
3. Profitability has improved significantly, with PAT rising from ₹131.58 lakh in FY2023 to ₹284.17 lakh in FY2025.
4. The company has established export operations across multiple international markets, helping diversify its revenue base.
5. Strong return ratios, including RoNW of approximately 29.30% in FY2025, indicate efficient utilisation of shareholder capital.
6. Planned capacity expansion through new machinery could improve productivity and support future revenue growth.
7. The company serves diversified end-use industries such as water management, industrial storage, automotive, sanitation, and consumer products.
8. Increasing demand for plastic storage and infrastructure products presents long-term growth opportunities.
9. Reduction in debt through IPO proceeds may strengthen cash flows and improve financial flexibility.

Risks and Threats of Phychem Technologies IPO

1. The business operates from a single manufacturing facility located in Nashik, making operations vulnerable to disruptions at that location.
2. Customer concentration risk remains significant, with the top 10 customers contributing around 49% to 51% of revenue in recent years.
3. Supplier concentration is high, with the largest supplier accounting for over 60% of purchases during the last three financial years.
4. The company is exposed to fluctuations in raw material prices, particularly polyethylene and related petrochemical-based inputs.
5. Export operations expose the company to foreign exchange fluctuations, geopolitical developments, and international trade restrictions.
6. Inventory and trade receivables constitute a significant portion of current assets, which may affect working capital efficiency if not managed effectively.
7. The business is dependent on continued demand from plastic product manufacturers and could be affected by regulatory restrictions on plastic usage.
8. Certain legal proceedings and tax matters involving the company and directors remain outstanding.
9. As an SME-listed company, its shares may face lower liquidity and higher price volatility compared to companies listed on the main board.

Phychem Technologies IPO Reservation

Phychem Technologies IPO Promoter Holding

The promoters of the company are Umakant Savadekar, Ulka Umakant Savadekar, Nivrutti Sonu Savdekar and Vijaya Nivrutti Savdekar.

Phychem Technologies IPO Prospectus

• Phychem Technologies IPO DRHP

Phychem Technologies IPO Registrar and Lead Managers

Phychem Technologies IPO Lead Managers

• Hem Securities Limited

Registrar for Phychem Technologies IPO

MUFG Intime India Private Limited

• Contact Number: 49186000
• Email Address: smeipo@in.mpms.mufg.com

Phychem Technologies IPO Registrar

How To Apply for Phychem Technologies IPO Online?

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3. Select IPO: Find and select the Phychem Technologies 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.

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Contact Details of Phychem Technologies IPO

Registered Office: Gat No. 172, Khatwad, Dindori, Nashik, Maharashtra, 422004, India.

Phone: +91-95187-20873

E-mail: cs@phychem.com