Deepak Chemtex IPO: GMP, issue details,10 things to Know about this SME IPO

The upcoming Deepak Chemtex IPO, slated for SME listing on December 11, 2023, unfolds with significant details and expectations. Here are 10 key aspects for investors to consider:

1. Establishment and Operations: Deepak Chemtex, founded in 1997, operates its manufacturing units in Lote Parshuram Industrial Area, Ratnagiri District. The company specializes in manufacturing colorants applied in various industries, including Food, Drug, Cosmetics, and Agriculture.
2. Product Range: Over the years, Deepak Chemtex has diversified its offerings to encompass a complete range of Food, Drug, and Cosmetic colors. These find applications in confectionery, bakery, beverages, pharmaceuticals, and more. The company also manufactures salt-free dyes, pond dyes, and colorants for various industrial uses.
3. Global Presence: With a portfolio of over 100 products, Deepak Chemtex exports to countries like China, France, Kenya, Mexico, Japan, the USA, and more. The company’s products carry HALAL and KOSHER certifications.
4. IPO Dates and Price Band: The IPO subscription period is from November 29, 2023, to December 1, 2023. The price band is set at ₹76 to ₹80 per share.
5. Lot Size: The minimum lot size for retail investors is 1600 shares, requiring an investment of ₹128,000. HNIs need to apply for a minimum of 2 lots (3,200 shares), amounting to ₹256,000.
6. Issue Size: Deepak Chemtex IPO is a book-built issue with a total value of ₹23.04 crores, consisting entirely of fresh issues of 28.8 lakh shares.
7. Objective of the IPO: The net proceeds from the IPO will be used for capital expenditure related to plant and machinery, investment in the subsidiary DCPL Speciality Chemicals Private Limited, working capital requirements, and general corporate purposes.
8. Promoters: Mr. Saurabh Deepak Arora and Ms. Trishla Baid are the promoters of Deepak Chemtex.
9. Lead Manager and Registrars: Hem Securities Limited serves as the book running lead manager, and Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for the IPO is Hem Finlease.
10. Reservation Breakdown: The IPO has reservations of 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Investors.

Grey Market Premium (GMP): Deepak Chemtex IPO GMP today is +28, indicating a premium of ₹28 in the grey market. This suggests investor interest, and the estimated listing price is anticipated at ₹108, a 35% increase from the IPO price of ₹80.

As investors gear up for the IPO, these key details provide insights into Deepak Chemtex’s operations, financials, and market expectations.