For those considering an investment in the dynamic chemical sector, understanding the nuances of a company’s operations, financial health, and adherence to specific investment principles is paramount. This detailed analysis focuses on the Chemkart India Ltd. IPO, providing insights into its business, financial performance, IPO specifics, and its Shariah compliance status.
Table of Contents
Crucial Shariah Status
For investors seeking opportunities aligned with Islamic financial principles, Chemkart India Ltd. stands out. Based on comprehensive screening, Chemkart India Ltd. is unequivocally categorized as Shariah Compliant.
- The company’s core business activities have passed the Shariah screening.
- Its impermissible income to total revenue is 0.0%.
- The interest-bearing debt to total assets ratio is 19.77%, which is within acceptable limits.
- The illiquid assets to total assets ratio is 36.39%, also meeting Shariah criteria.
- The company passes the net liquid assets versus market capitalisation rule.
- Significantly, Chemkart India Ltd. also passes the non-compliant investments to total assets rule.
Therefore, for Muslim investors prioritizing Shariah compliance, Chemkart India Ltd. IPO presents itself as a permissible investment avenue.
About Chemkart India Ltd.: Catalyzing Chemical Solutions
Chemkart India Ltd. has positioned itself as a significant player in the chemical industry, dedicated to innovation and sustainability. Since its inception, the company has been committed to delivering high-quality chemical solutions, driven by a clear mission and vision for growth and impact.
- Foundation and Evolution: Chemkart India Ltd. boasts a rich history and a well-established foundation, consistently evolving to meet the demands of the chemical sector.
- Core Business: The company is engaged in the chemicals sector, implying a focus on manufacturing, distribution, or other activities related to chemical products.
- Strategic Direction: Guided by a well-defined mission and vision, Chemkart India Ltd. aims to achieve excellence in its operations and contribute meaningfully to the industry.
- Leadership: The company is steered by a dedicated and experienced team, suggesting robust management and strategic direction.
Chemkart India Ltd. IPO: Key Details
The Initial Public Offering of Chemkart India Ltd. is structured as a Bookbuilding Issue. The IPO opened on Monday, July 7, 2025, and is scheduled to close on Wednesday, July 9, 2025. The total issue size is 32,29,200 shares, aggregating up to ₹80.08 Crores. This includes both a Fresh Issue and an Offer for Sale.
- IPO Open Date: July 7, 2025 (Monday)
- IPO Close Date: July 9, 2025 (Wednesday)
- Face Value: ₹10 per share
- Issue Price Band: ₹236 to ₹248 per share
- Lot Size: 600 Shares
- Total Issue Size: 32,29,200 shares (aggregating up to ₹80.08 Crores)
- Fresh Issue: 24,33,000 shares (aggregating up to ₹60.36 Crores)
- Offer for Sale: 6,29,200 shares (aggregating up to ₹15.60 Crores)
- Reserved for Market Maker: 1,66,200 shares (aggregating up to ₹4.12 Crores)
- Net Offered to Public: 30,63,000 shares (aggregating up to ₹75.96 Crores)
- Issue Type: Bookbuilding IPO
- Listing At: BSE SME
- Tentative Allotment Date: Thursday, July 10, 2025
- Initiation of Refunds: Friday, July 11, 2025
- Credit of Shares to Demat: Friday, July 11, 2025
- Tentative Listing Date: Monday, July 14, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 9, 2025
- Share Holding Pre Issue: 94,99,000 shares
- Share Holding Post Issue: 1,20,99,000 shares
- Retail Investor Application (Min): 1 lots (600 shares, ₹1,48,800 amount)
- Retail Investor Application (Max): 2 lots (1,200 shares, ₹2,97,600 amount)
- S-HNI (Min): 3 lots (1,800 shares)
- S-HNI (Max): 6 lots (3,600 shares)
- B-HNI (Min): 7 lots (4,200 shares)
Financial Performance: A Snapshot of Chemkart India Ltd.
Chemkart India Limited’s financial performance has shown impressive growth. The company’s revenue increased by 55% and profit after tax (PAT) rose by 67% between the financial year ending March 31, 2025, and March 31, 2024. The company’s sales (revenue) are growing well, and profit after tax has also improved, indicating better earnings each year. EBITDA has increased, showing that the company’s core business is becoming stronger. Total assets and reserves are rising steadily. In short, the company demonstrates strong fundamentals with manageable debt.
- Assets: Increased from ₹37.48 Crores in March 2023 to ₹86.12 Crores in March 2025.
- Revenue: Grew from ₹131.69 Crores in March 2023 to ₹205.46 Crores in March 2025.
- Profit After Tax: Showed consistent improvement, from ₹7.66 Crores in March 2023 to ₹24.26 Crores in March 2025.
- EBITDA: Increased from ₹11.05 Crores in March 2023 to ₹32.76 Crores in March 2025.
- Net Worth: Grew from ₹14.50 Crores in March 2023 to ₹53.29 Crores in March 2025.
- Reserves and Surplus: Increased from ₹13.14 Crores to ₹43.79 Crores in the same period.
- Total Borrowing: Increased from ₹11.33 Crores in March 2023 to ₹17.03 Crores in March 2025.
Key Performance Indicator (KPI): Chemkart India Ltd.
Key Performance Indicators offer insights into Chemkart India Ltd.’s efficiency and valuation, as of Monday, March 31, 2025. The market capitalization of Chemkart India IPO is ₹300.06 Crores.
- ROE (Return on Equity): 59%
- ROCE (Return on Capital Employed): 49%
- Debt/Equity: 0.32
- RoNW (Return on Net Worth): 45.52%
- EBITDA Margin: 16.12%
- Price to Book Value: 8.12
Objects of the Issue: Purpose of the IPO Funds
The company Chemkart India IPO proposes to utilise the Net Proceeds from the Issue towards the following objectives:
- Financing the capital expenditure towards setting up of a Manufacturing Facility through investment in the Wholly-Owned Subsidiary (WOS) Company, Easy Raw Materials Private Limited: ₹34.60 Crores.
- Repayment/prepayment of all or certain of the borrowings availed of by the Company: ₹20.00 Crores.
- General Corporate Purpose.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Chemkart India IPO is currently ₹0 (0.00%). This indicates that as of now, there is no significant premium or discount in the grey market for this IPO. GMP is an unofficial indicator that reflects market sentiment and can fluctuate.
Conclusion and Investor Outlook
Chemkart India Ltd. presents itself as a robust and growing entity within the chemicals sector, demonstrating strong financial performance and clear objectives for its IPO proceeds. Its Shariah-compliant status makes it a particularly attractive option for Muslim investors seeking ethically sound investment opportunities. For all investors, a thorough review of the Red Herring Prospectus (RHP) is always recommended to understand the company’s detailed business model, risk factors, and future strategies. An informed investment decision is best made after comprehensive research aligned with individual investment goals and risk tolerance.
Ready to explore more Shariah-compliant investments?
To learn more about IPOs, get detailed company analyses, and find Shariah-compliant investment options, visit our website at IslamicStock Website, dive into insightful articles on our blog at IslamicStock Blog, and download our application, IslamicStock, for in-depth screenings and investment guidance tailored for you.
Download IslamicStock on Google Play Store
Download IslamicStock on Apple App Store
SEBI Disclaimer: Investment in securities markets are subject to market risks, read all the related documents carefully before investing. The information provided in this article is for educational and informational purposes only and does not constitute financial advice. Investors should consult with qualified financial professionals before making any investment decisions.