Unilex Colours and Chemicals IPO: Review, Valuation & Date

Unilex Colours and Chemicals IPO-Complete Overview

Unilex Colours and Chemicals IPO an SME IPO is a book-built issue of Rs.31.32 crore by Unilex Colours and Chemicals Limited which was established in March 2001 and produces food coloring, pigments, and chemicals for trade.

The business serves both domestic and foreign markets by marketing its goods under the registered brand name "Unilex." They offer a large selection of pigment solutions for different sectors.

Largely spanning 1275 square meters, the company's manufacturing facility in Palghar, Maharashtra, is outfitted with a number of equipment, such as a ball mill, root blower, silo, drying vessel, reaction steel vessel, brick lined vessel, rubber-lined vessel, spin flash dryer, ribbon blender, air classifier mill, air blender, and filter press.

The company's manufacturing facility has obtained ISO 9001:2015 certification for quality management in the synthesis of medication intermediates, food dyes, and pigments.

The manufacturing revenue of the company was Rs.6,652.17 lac in FY 2024, Rs.7,455.21 lac in FY 2023, and Rs.8,487.51 lac in FY 2022. These amounts accounted for 46.24%, 53.48%, and 58.42% of the total revenue, respectively.

To satisfy the unique needs of its clients, the company sources a wide selection of pigments from different third-party producers, such as Pigment Green -7, Pigment Middle Chrome, Pigment Violet 23 & 27, and Ultramarine Blue.

Products from the company are exported to the Netherlands, Poland, China, Spain, Malaysia, Thailand, Vietnam, Brazil, Mexico, Nigeria, Russia, Turkey, United Arab Emirates, and Uzbekistan.

The company sells wooden pallets, jumbo bags, HDPE and HDPE-coated bags, multi-layer liners and HM covers, corrugated boxes, and multi-layer paper bags.

This new SME IPO is to be launched on 25 September 2024, and its ‘initial public offering’ will end on 27 September 2024.

 

Unilex Colours and Chemicals IPO Overview

The Rs.31.32 crore Unilex Colours and Chemicals Limited IPO is an entirely fresh issue of 36 lac Shares. 

This SME IPO date is from September 25-September 27, 2024. The expected IPO listing date is on Thursday, 03 October 2024, on NSE and SME. Unilex Colours and Chemicals IPO price is Rs.82 to Rs.87 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue was increased by 3% and PAT grew by 24% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	9,068.35	7,072.31	7,669.84
Total Revenue	14,932.88	14,441.84	15,156.73
PAT	616.67	497.07	471.17
Net Worth	3,686	3,202.89	2,805.98
Total Reserves & Surplus	2,684.3	2,868.99	2,472.08
Borrowings	2,161.4	1,166.83	1,135.09

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities	FY 2023-2024	FY 2022-2023	FY 2021-2022
Net Cash Flow Operating Activities	-407.70	233.64	-553.38
Net Cash Flow Investing Activities	-29.80	-61.07	-88.76
Net Cash Flow Financing Activities	771.14	-131.06	319.05

 

Product-wise Export Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

Product	FY 2023-2024	FY 2022-2023	FY 2021-2022
Pigment Blue 15:3	3,717.83	4,378.93	5,704.47
Pigment Green 7	2,735.43	3,063.31	3,158
Pigment Blue 15:4	1,790.12	1892.14	1,175.55
Pigment Blue 15:0	590.98	573.73	979.37
Pigment Blue 15:1	536.37	589.70	595.18
Total	9,370.73	10,497.81	11,612.57

 

Geographical-wise Revenue Breakdown 

(Amount in lac)

Country	FY 2023-2024	FY 2022-2023	FY 2021-2022
India	2,957.64	1,618.87	1,686.21
Vietnam	2,430.21	1,543.44	1,531.02
U.A.E.	1,215.15	313.77	164.99
Nigeria	994.73	1,057.23	1,067.69
Poland	945.93	726.21	281.08
Brazil	610.62	1,085.36	281.82
USA	522.39	133.75	243.17
Netherlands	483.85	835.33	502.03
Russia	431	982.91	390.29
Spain	393.15	455.98	583.32
Others	3,400.34	5,186.18	7,795.84

 

Industry-wise Export Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

Industry	FY 2023-2024	FY 2022-2023	FY 2021-2022
Paints & Coating	3,696.58	2,198.36	2,794.28
Plastic	1,596.84	1,715.48	2,664.88
Printing Inks	6,092.55	6,224.02	5,835.53
Textiles	1,065.55	1,293.83	1,340.31
Others	1,933.50	2,507.33	1,892.46

 

Sales-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

Revenue From Operations	FY 2023-2024	FY 2022-2023	FY 2021-2022
Export	11,427.37	12,320.16	12,841.25
Domestic	2,957.64	1,618.87	1,686.21
Total	14,385.01	13,939.03	14,527.46

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Funding the company's needs for working cash

• Repayment in full or in part of some outstanding loans taken out by the business

• General corporate purposes.

 

Peers of Unilex Colours and Chemicals Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Kesar Petroproducts Ltd.	1	0.51	36.51
Sudarshan Chemical Industries Ltd.	2	48.4	18.62

 

Note:-

The basic EPS of the peers is for the financial year ending 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 28 June 2024.

 

Evaluation

The IPO price is Rs.82 to Rs.87 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.6.16 from the last year, the resulting P/E ratio is 14.12x.

Considering the weighted EPS of Rs.5.52 for the last three years, the P/E ratio is 15.76x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 27.57x.

Particulars	P/E Ratio (x)
Highest	36.51
Lowest	18.62
Average	27.57

In simple words, the P/E ratio of Unilex Colours and Chemicals Ltd. IPO (14.12x), compared with the industry’s average P/E of 27.57x, has an undervaluation (on a P/E Ratio basis only). Hence the price of the Share seems fairly (fully) priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

• Long-standing connections with a wide range of clients worldwide

• The company provides a wide selection of items

• Serving a diverse array of industries

• Skilled promoters and directors with a capable management group that possesses subject-matter expertise

• Capabilities for research and development that enable product innovation and personalization.

 

IPO’s Weaknesses

• Sales of its top five products account for a sizable amount of its revenue. Its business could be negatively impacted by the loss of consumers who buy these products, a large decrease in their production and sales, or a decline in their demand.

• Reliance on a single place of production

• Contribution to fluctuating manufacturing revenue

• Fierce rivalry in the chemicals and pigments sector

• Price fluctuations for basic materials

• Modifications to regulations impacting chemical manufacturing

• Economic downturns affect the demand across a range of sectors.

 

Unilex Colours and Chemicals IPO GMP Today

Its IPO GMP today is Rs.0 as of 23 September 2024. With a price of Rs.87, the estimated IPO listing price is Rs.87 at the time of writing this information.

IPO Timetable (Tentative)

The Unilex Colours and Chemicals IPO date is from September 25 to September 27, 2024, with allotment on September 30, refund initiation on October 01, and listing on October 03, 2024.

Events	Date
IPO Opening Date	September 25, 2024
IPO Closing Date	September 27, 2024
IPO Allotment Date	September 30, 2024
Refund Initiation	October 01, 2024
IPO Listing Date	October 03, 2024

 

Unilex Colours and Chemicals IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 3,600,000 Shares (Rs.31.32 Cr).

IPO Opening & Closing date	September 25, 2024 to September 27, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.82 to Rs.87 per Share.
Lot Size	1600 Shares
Issue Size	3,600,000Shares (Rs.31.32 Cr).
Offer for Sale	NA
Fresh Issue	3,600,000Shares (Rs.31.32 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd.

Unilex Colours and Chemicals IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,39,200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,78,400.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Unilex Colours and Chemicals IPO Reservation (% of Net Issue)

Institutional’s Portion	50%
Retail’s Portion	35%
Non-Institutional’s Portion	15%

 

Promoters And Management of Unilex Colours and Chemicals Ltd.

• Purushottam Brijlal Sharma

• Narendra Parameswarappa Kotehall

• Aditya Sharma

• Manojkumar Shyamsunder Sharma

• Rohit Krishnakumar Sharma

• Kabir Radheyshyam Sharma
  
  

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	73.56%

 

IPO Lead Managers

• Hem Securities Limited.
  
  

Dividend Policy

Dividend	FY 2023-2024	FY 2022-2023	FY 2021-2022
Dividend (Rs. in lac)	133.56	100.17	100.17
Dividend per Equity Share (Rs.)	3	4	3

 

Conclusion

The business produces pigments and deals in chemicals and food coloring. Although it recorded inconsistent financial results for the months covered, FY24 saw increased earnings. The market that the business serves is very competitive and divided. FY24 earnings suggest that the issue is fully priced. It has faced negative cash flows from various activities in some of the previous fiscal years. The company is launching an IPO for the general public to achieve its goals. Hope this blog helped you with the information you were seeking.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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