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IPO

Unilex Colour & Chemical Ltd

Unilex Colour & Chemical Ltd IPO

Status: Closed

Overview

IPO date

25 Sept 2024 to 27 Sept 2024

Face value

₹ 10 per share

Price

₹ 82 to ₹87 per share

Issue Size

3,600,000 shares
(aggregating up to ₹ 31.32 Cr)

Allotment Date

30 Sept 2024

Listing at

NSE

Issue type

Book Building - SME

Sector

Chemicals

Objectives of Unilex Colour & Chemical Ltd IPO

Unilex Colour & Chemical Ltd IPO Strategy

About Unilex Colour & Chemical Ltd

Unlock Stock of the Month

T&C*

Strengths vs Risks of Unilex Colour & Chemical Ltd

Know the pros & cons

Strengths

Long standing relationships with diversified customers across geographies.
We offer a diversified range of products.
Catering to wide range of industries.
Experienced Promoters and Directors with strong management team having domain knowledge.
Research and development capabilities allowing product innovation and customization.

Risks

A significant portion of its revenue is generated from sales of the company top five products. The loss of customers who purchase these products, or a significant reduction in the production and sales of, or demand for said products may adversely affect its business, financial condition, results of operations and prospects.
The company is dependent upon third parties for trading and supply of the products its sell, with whom the company may not had long term contracts or exclusive supply arrangements. Any delay or failures on the part of such vendors to deliver products, may adversely affect its business, profitability and reputation.
Its business is dependent and will continue to depend on the company's manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
The company derives a significant part of its revenue from major customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, the company's business, financial position and results of operations may be adversely affected.
There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Some of its corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
The company is heavily reliant on a limited number of suppliers for raw materials, coupled with the absence of long-term agreements, exposes it to significant risks of supply disruptions, price fluctuations, and quality issues, which could adversely affect its business operations, financial condition, and results of operations.
The company reliance on certain industries for a significant portion of its sales could have an adverse effect on the company's business.
The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
The company is exposed to foreign currency fluctuations risks, particularly in relation to export of products, which may adversely affect its results of operations, financial condition and cash flows.
The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
The Company has had a negative operating cashflow in two fiscal years. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company's quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.
The Registered office from where the company carry out its business activities are owned by the company Promoter Group Entity, Chemi Udyog, and has been obtained by it on lease /rental basis. In case of non-renewal of lease/rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.
The Company aims to achieve 100% capacity utilization in FY 2024-25 and wish to acquire the businesses in similar areas for which the targets have not yet been identified.
Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
The company is subject to increasingly stringent environmental, health and safety laws, regulations and standards. Non-compliance with and adverse changes in health, safety, labour, and environmental laws and other similar regulations to its manufacturing operations may adversely affect the company's business, results of operations and financial condition.
The company faces competition from both domestic as well as multinational corporations and its inability to compete effectively may have a material adverse impact on its business, financial condition and results of operations.
Its Group company is engaged in similar line of business as of its. There is no non-compete agreements between the company and such other entity. The company cannot assure that its Promoters will not be favor the interests of such Companies over its interest or that the said entities will not expand which may increase its competition, which may adversely affect business operations and financial condition of the company.
The Company operates under several statutory and regulatory approvals in respect of its operations. Failures to obtain or maintain licenses, registrations, permits and approvals may affect its business and results of operations.
The company is dependent on its promoter and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.
There are outstanding legal tax proceedings involving in the Company. Any adverse decisions could impact its cashflows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on its business, prospects, results of operations and financial condition.
If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.
The cost of implementing new technologies for its operations could be significant and could adversely affect the company's business, financial condition and results of operations.
Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
The company is dependent on third party transportation providers for the delivery of its raw material and products. Accordingly, continuing increases in transportation costs or unavailability of transportation services may have an adverse effect on its business, financial condition, results of operations and prospects.
Activities involving its manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.
The markets in which the company compete are characterized by consumers and their rapidly changing tastes and preferences and therefore as a result the Company may be affected by any disruptions in the industry.
None of its Directors possess experience of being on the board of any listed company.
The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
Under-utilization of its manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facility included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
The company cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and industry in which the company operates contained mentioned under chapter titled Industry Overview in the Red Herring Prospectus.
The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
Its Promoter and Promoter Group members has provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations and cash flows may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter and Promoter Group members.
Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.
The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.
its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
Certain data mentioned in this Red Herring Prospectus under chapter titled Industry Overview has not been independently verified.
QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.
Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.

Unilex Colour & Chemical Ltd Peer Comparison

Understand the company’s industry standing

Unilex Colour & Chemical Ltd

Kesar Petroproducts Ltd

Sudarshan Chemical Industries Ltd

Face Value

Standalone / Consolidated

Standalone

Total Income Rs. Cr.

149.3288

156.56

2158.823

EPS-Basis

6.16

48.4

EPS-Diluted

---

NAV Per Share

---

P/E-Basic EPS

---

36.51

18.62

P/E-Diluted EPS

---

RONW(%)

16.73

3.99

30.29

Latest NAV Period

---

Latest NAV

---

How to check the allotment status of Unilex Colour & Chemical Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 25 Sept 2024 & closes on 27 Sept 2024.

Unilex Colour & Chemical Limited was originally incorporated as a Public Limited Company under the name of 'Unilex Exports Limited' on March 23, 2001 with the Registrar of Companies, Mumbai, Maharashtra. Further, the Company name was changed from 'Unilex Exports Limited' to 'Unilex Colours and Chemicals Limited' and a fresh Certificate of Incorporation upon Change of Name was issued by the Registrar of Companies, Mumbai, Maharashtra vide Certificate dated April 14, 2012. The Company is engaged in the manufacturing of Pigment, and the trading of chemicals and food colours. Within Pigments, the Company specialize in Pigment Blue 15:3 and 15:4, with an annual production capacity of 1878 MTPA. The products are marketed under the registered brand name 'Unilex.' Their manufacturing facility is situated at Tarapur, in Palghar District of Maharashtra and is equipped with various machines such as Ball Mill Machine, Root Blower, Silo, Reaction Steel Vessel, Brick Linned Vessel, Rubber Linned Vessel, Drowning Vessel, Spin Flash Dryer, Ribbon Blender, Air Classifier Mill Machine, Air Blender, Filter Press Machine etc. These products are manufactured from raw materials such as BM CPC, Caustic Soda Flakes, Gum Rosin, Hydrochloric Acid, Mix Xylene, Additive Monosulphonaled CPC Blue and Unisol SI-20 etc. The product basket includes wide range of pigments including Pigment Green -7, Pigment middle chrome, Pigment Violet 23 & 27 and Ultramarine Blue, which are sourced from other manufacturers. The Company provide flexible packing options such as Multi-Layer Paper Bags, Corrugated Boxes, HDPE and HDPE Coated Bags, MultiLayer Abetted Liners and HM Covers, Wooden Pallets and Jumbo Bags among others. The Company is planning an IPO of upto 36,00,000 Fresh Issue Equity Shares.

Unilex Colour & Chemical Ltd IPO will close on 27 Sept 2024.

Long standing relationships with diversified customers across geographies.
We offer a diversified range of products.
Catering to wide range of industries.
Experienced Promoters and Directors with strong management team having domain knowledge.
Research and development capabilities allowing product innovation and customization.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Purushottam Brijal Sharma	858000	8.57	858000	6.3
2	Narendra Parameshwarappa Koteh	144000	1.44	144000	1.06
3	Aditya Sharma	2253000	22.49	2253000	16.52
4	Manojkumar Shyamsunder Sharma	2250000	22.46	2250000	16.52
5	Rohit Krishnakumar Sharma	2250000	22.46	2250000	16.52
6	Kabir Radheshyam Sharma	2250000	22.46	2250000	16.52

A significant portion of its revenue is generated from sales of the company top five products. The loss of customers who purchase these products, or a significant reduction in the production and sales of, or demand for said products may adversely affect its business, financial condition, results of operations and prospects.
The company is dependent upon third parties for trading and supply of the products its sell, with whom the company may not had long term contracts or exclusive supply arrangements. Any delay or failures on the part of such vendors to deliver products, may adversely affect its business, profitability and reputation.
Its business is dependent and will continue to depend on the company's manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
The company derives a significant part of its revenue from major customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, the company's business, financial position and results of operations may be adversely affected.
There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Some of its corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
The company is heavily reliant on a limited number of suppliers for raw materials, coupled with the absence of long-term agreements, exposes it to significant risks of supply disruptions, price fluctuations, and quality issues, which could adversely affect its business operations, financial condition, and results of operations.
The company reliance on certain industries for a significant portion of its sales could have an adverse effect on the company's business.
The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
The company is exposed to foreign currency fluctuations risks, particularly in relation to export of products, which may adversely affect its results of operations, financial condition and cash flows.
The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
The Company has had a negative operating cashflow in two fiscal years. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company's quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.
The Registered office from where the company carry out its business activities are owned by the company Promoter Group Entity, Chemi Udyog, and has been obtained by it on lease /rental basis. In case of non-renewal of lease/rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.
The Company aims to achieve 100% capacity utilization in FY 2024-25 and wish to acquire the businesses in similar areas for which the targets have not yet been identified.
Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
The company is subject to increasingly stringent environmental, health and safety laws, regulations and standards. Non-compliance with and adverse changes in health, safety, labour, and environmental laws and other similar regulations to its manufacturing operations may adversely affect the company's business, results of operations and financial condition.
The company faces competition from both domestic as well as multinational corporations and its inability to compete effectively may have a material adverse impact on its business, financial condition and results of operations.
Its Group company is engaged in similar line of business as of its. There is no non-compete agreements between the company and such other entity. The company cannot assure that its Promoters will not be favor the interests of such Companies over its interest or that the said entities will not expand which may increase its competition, which may adversely affect business operations and financial condition of the company.
The Company operates under several statutory and regulatory approvals in respect of its operations. Failures to obtain or maintain licenses, registrations, permits and approvals may affect its business and results of operations.
The company is dependent on its promoter and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.
There are outstanding legal tax proceedings involving in the Company. Any adverse decisions could impact its cashflows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on its business, prospects, results of operations and financial condition.
If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.
The cost of implementing new technologies for its operations could be significant and could adversely affect the company's business, financial condition and results of operations.
Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
The company is dependent on third party transportation providers for the delivery of its raw material and products. Accordingly, continuing increases in transportation costs or unavailability of transportation services may have an adverse effect on its business, financial condition, results of operations and prospects.
Activities involving its manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.
The markets in which the company compete are characterized by consumers and their rapidly changing tastes and preferences and therefore as a result the Company may be affected by any disruptions in the industry.
None of its Directors possess experience of being on the board of any listed company.
The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
Under-utilization of its manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facility included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
The company cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and industry in which the company operates contained mentioned under chapter titled Industry Overview in the Red Herring Prospectus.
The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
Its Promoter and Promoter Group members has provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations and cash flows may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter and Promoter Group members.
Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.
The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.
its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
Certain data mentioned in this Red Herring Prospectus under chapter titled Industry Overview has not been independently verified.
QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.
Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.

The Issue type of Unilex Colour & Chemical Ltd is Book Building - SME.

The minimum application for shares of Unilex Colour & Chemical Ltd is 1600.

The total shares issue of Unilex Colour & Chemical Ltd is 3600000.

Initial public offer of upto 36,00,000* equity shares of face value of Rs. 10/- each (the "Equity Shares") of Unilex Colours and Chemicals Limited ("The Company" or "The Issuer) at an issue price of Rs. 87/- per equity share (including share premium of Rs. 77/- per equity share) for cash, aggregating up to Rs. 31.32 crores ("Public Issue") out of which 1,92,000* equity shares of face value of Rs. 10 each, at an issue price of Rs. 87/- per equity share for cash, aggregating Rs. 1.67 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 34,08,000* equity shares of face value of Rs. 10 each, at an issue price of Rs. 87/- per equity share for cash, aggregating upto Rs. 29.65 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.44% and 25.03% respectively of the post-issue paid-up equity share capital of the company. *Subject to finalization of basis of allotment.

Unilex Colour & Chemical Ltd IPOUNILEX

Objectives of Unilex Colour & Chemical Ltd IPO

Unilex Colour & Chemical Ltd IPO Strategy

About Unilex Colour & Chemical Ltd

Strengths vs Risks of Unilex Colour & Chemical Ltd

Strengths

Risks

Unilex Colour & Chemical Ltd Peer Comparison

How to check the allotment status of Unilex Colour & Chemical Ltd IPO?

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When does Unilex Colour & Chemical Ltd IPO open?

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What are the strengths of Unilex Colour & Chemical Ltd?

What are the promoter details of Unilex Colour & Chemical Ltd IPO?

What are the risks of Unilex Colour & Chemical Ltd?

What is the issue type of Unilex Colour & Chemical Ltd IPO?

What is the minimum application for shares of Unilex Colour & Chemical Ltd?

Total shares issue of Unilex Colour & Chemical Ltd IPO?

What are the objectives of Unilex Colour & Chemical Ltd IPO?

Unilex Colour & Chemical Ltd IPO