In this article you get to know insight about Deepak Chemtex Limited IPO Details. Established in 1997, Deepak Chemtex Limited is a dynamic player in the colorants manufacturing sector, catering to a diverse range of industries. The company focuses on producing colorants for applications in Food, Drug, Cosmetics, Cleaning compounds, Agriculture, and other sectors.
Deepak Chemtex specializes in the manufacturing of FDC (Food, Drug, and Cosmetic) colors, which find applications in confectionery, bakery, desserts, beverages, dairy products, seasonings, pet foods, pharmaceuticals, cosmetics, and personal care products. The company also produces salt-free dyes used in the inkjet industry, pond dyes for water bodies, and various colorants for applications such as car wash products, portable sanitation cleaners, detergents, soaps, fuel, oil, lubricants, smoke, seed treatment, crop protection, fertilizer indicators, floral dyes, and more.
The manufacturing unit, strategically located in Ratnagiri District, Maharashtra, boasts a robust production capacity exceeding 1200 metric tonnes per annum. Equipped with state-of-the-art facilities, including glass-lined reactors, boilers, and stainless steel equipment, the unit undergoes regular audits by clients from the USA and EU. Additionally, the facility holds ISO 9001:2015 accreditation, assuring high-quality standards. Deepak Chemtex has also earned a HALAL certificate, ensuring adherence to Islamic dietary laws, and a KOSHER certificate, indicating compliance with the Dietary Laws of Judaism.
With a diverse product portfolio comprising over 100 items, Deepak Chemtex has successfully expanded its reach to international markets. The company exports its products to several countries, including China, France, Kenya, Mexico, Europe, Japan, Australia, the United Kingdom, and the United States of America. This global presence reflects the company’s commitment to delivering quality colorants on a worldwide scale.
Deepak Chemtex Limited stands as a reliable and innovative player in the colorants industry, leveraging advanced manufacturing capabilities, adherence to international quality standards, and a diverse product range to meet the evolving needs of various industries globally.
Objects of the Issue
Funding Capital Expenditure for Plant & Machinery Installation:
Allocation of funds to support capital expenditure for the installation of plant and machinery within the company’s existing premises. This investment aims to enhance operational capabilities, efficiency, and productivity, ensuring that Deepak Chemtex remains at the forefront of technological advancements.
Investment in Subsidiary DCPL Speciality Chemicals Private Limited:
Strategic investment in the subsidiary, DCPL Speciality Chemicals Private Limited, to finance its capital expenditure related to the installation of plant and machinery. This move demonstrates a commitment to strengthening the capabilities and growth potential of the subsidiary, contributing to the overall expansion and diversification of the company’s business portfolio.
Funding Working Capital Requirements:
Allocation of funds to meet the day-to-day operational needs and working capital requirements of Deepak Chemtex Limited. This includes managing inventory, accounts payable, and receivables, ensuring a smooth and efficient business cycle.
General Corporate Purpose:
Utilization of funds for general corporate purposes, encompassing various operational needs, strategic initiatives, and other activities that contribute to the overall stability and growth of the company. This provides flexibility for responding to unforeseen opportunities or challenges, reinforcing the company’s overall corporate strategy.
Deepak Chemtex Limited IPO Details
| IPO Date | November 29, 2023 to December 1, 2023 |
| Face Value | ₹10 per share |
| Price | ₹76 to ₹80 per share |
| Lot Size | 1600 Shares |
| Total Issue Size | 2,880,000 shares (aggregating up to ₹23.04 Cr) |
| Fresh Issue | 2,880,000 shares (aggregating up to ₹23.04 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing | BSE SME |
| Share holding pre issue | 7,984,000 |
| Share holding post issue | 10,864,000 |
| Market Maker portion | 147,200 shares |
Deepak Chemtex Limited IPO Reservation
QIB (Qualified Institutional Buyers) Shares:
Offered Share Percentage: Not more than 50.00% of the Net Offer.
Retail Shares:
Offered Share Percentage: Not less than 35.00% of the Offer.
NII (Non-Institutional Investors, including HNI – High Net Worth Individuals) Shares:
Offered Share Percentage: Not less than 15.00% of the Offer.
This strategic allocation ensures that a significant portion of the shares is made available to retail investors, promoting inclusivity and wider public participation in the IPO. The QIB segment is allocated a substantial but controlled percentage, reflecting the interest and participation of institutional buyers. Additionally, the NII segment is allocated a reasonable share, acknowledging the importance of high net worth individuals in the investment landscape.
Deepak Chemtex Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1600 | ₹128,000 |
| Retail (Max) | 1 | 1600 | ₹128,000 |
| HNI (Min) | 2 | 3,200 | ₹256,000 |
Deepak Chemtex Limited IPO Promoter Holding
Mr. Saurabh Deepak Arora and Ms. Trishla Baid serve as the company promoters. As of the pre-issue stage, the promoters collectively hold a significant ownership stake, with a total shareholding of 99.40%. This implies a strong involvement and commitment from the promoters in the company’s affairs.
Deepak Chemtex Limited IPO Tentative Dates
| IPO Open Date | Wednesday, November 29, 2023 |
| IPO Close Date | Friday, December 1, 2023 |
| Basis of Allotment | Wednesday, December 6, 2023 |
| Initiation of Refunds | Thursday, December 7, 2023 |
| Credit of Shares to Demat | Friday, December 8, 2023 |
| Listing Date | Monday, December 11, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 1, 2023 |
Deepak Chemtex Limited IPO Registrar
For the Deepak Chemtex IPO, Bigshare Services Pvt Ltd has been appointed as the registrar. If you have any queries or require assistance regarding the IPO, you can contact Bigshare Services Pvt Ltd through the following details:
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
FAQs
What is the primary focus of Deepak Chemtex Limited?
Deepak Chemtex Limited is a dynamic player in the colorants manufacturing sector, specializing in the production of colorants for applications in Food, Drug, Cosmetics, Cleaning compounds, Agriculture, and other sectors.
When was Deepak Chemtex Limited established?
Deepak Chemtex Limited was established in 1997.
What are the key products manufactured by Deepak Chemtex Limited?
Deepak Chemtex specializes in the manufacturing of FDC (Food, Drug, and Cosmetic) colors, salt-free dyes, and various colorants for applications such as inkjet industry, pond dyes, car wash products, portable sanitation cleaners, detergents, soaps, fuel, oil, lubricants, seed treatment, crop protection, fertilizer indicators, floral dyes, and more.
Where is Deepak Chemtex’s manufacturing unit located?
The manufacturing unit is strategically located in Ratnagiri District, Maharashtra, equipped with state-of-the-art facilities.
What certifications does Deepak Chemtex hold for quality assurance?
Deepak Chemtex has ISO 9001:2015 accreditation, HALAL certification, and KOSHER certification, ensuring adherence to international quality standards.
What is the global reach of Deepak Chemtex Limited?
Deepak Chemtex exports its products to several countries, including China, France, Kenya, Mexico, Europe, Japan, Australia, the United Kingdom, and the United States of America.
What are the objectives of Deepak Chemtex Limited’s IPO?
The IPO aims to fund capital expenditure for plant and machinery installation, invest in the subsidiary DCPL Speciality Chemicals Private Limited, meet working capital requirements, and address general corporate purposes.
When is the IPO of Deepak Chemtex Limited?
The IPO of Deepak Chemtex Limited is scheduled to take place from November 29, 2023, to December 1, 2023.
What is the face value of Deepak Chemtex Limited shares?
The face value of Deepak Chemtex Limited shares is ₹10 per share.
What is the price range for Deepak Chemtex Limited shares in the IPO?
The price range for Deepak Chemtex Limited shares in the IPO is ₹76 to ₹80 per share.
What is the lot size for the Deepak Chemtex Limited IPO?
The lot size for the Deepak Chemtex Limited IPO is 1600 shares.