Chemkart India IPO

About Chemkart India Ltd IPO

A 100% book-built offer, the IPO of Chemakart India Ltd comprises a fresh issue and an offer for sale of up to 26,00,000 and 6,30,000 equity shares, respectively. The IPO will open on TBA and close on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.

Objectives of Chemkart India Ltd IPO

• Financing the capital expenditure towards setting up of the manufacturing facility through investment in its wholly-owned subsidiary (WOS) company, Easy Raw Materials Private Limited
• Repayment/prepayment of all or certain of its borrowings availed of by the company
• General corporate purposes

Industry Outlook

The global nutraceutical market is currently estimated at around $400 billion, blending the fields of food, pharmaceuticals, and biotechnology. India stands out as a key player, supported by its rich heritage of traditional knowledge, especially in Ayurveda, and a unique ecosystem that fosters growth in this sector. However, India's share remains under 2% globally, primarily due to a lack of defined industry classification within Indian ministries, limiting targeted sector support.

Through the Department of Commerce, India has showcased its nutraceutical strengths at global trade fairs, enhancing visibility and forging connections with international stakeholders. The collaboration between the Task Force and the Central Board of Indirect Taxes and Customs (CBIC) is working toward a unique HSN code to streamline exports and simplify customs procedures.

With these strategic initiatives, India’s nutraceutical sector is set for unprecedented growth. India aims to position itself as a global leader in nutraceuticals, combining traditional knowledge with modern science to attract global partnerships and investments.

Company Information

Chemkart India Ltd is a one stop destination for various nutritional, Health and sports supplement products. The company focuses on providing health benefits in addition to their nutritional values, reflecting its ability in catering to nutritional as well as health needs of the end customers.

The company is based in Mumbai, offering a diverse range of captivated nutritional supplements and components. It targets the Business-to-Business (B-to-B) businesses which uses its products into manufacturing of finished supplements which includes sports supplements, health supplements, vitamins, protein products etc.

Risks of Chemkart India Ltd IPO

• Risk of Supply Chain Disruption: Chemkart’s business operations rely significantly on the continuous and timely supply of products from top 5 and top 10 suppliers, Also, it doesn’t have continuing and exclusive supply agreements with them. Any interruptions or discontinuation of the same will adversely impact its overall performance and profitability.

• Dependence on International Risks: The company sources majority of the products from international market i.e. China. Any adverse developments affecting its procurement in this region could have an adverse impact on its revenue and results of operations.

• Geographical concentration risk: The company generates majority of the sales from domestic markets of which major portion of sales from its operations is generated from certain geographical regions especially, Maharashtra, Gujarat and New Delhi and minority portion of sales are from the international market.

Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Peer Comparison

There are no listed companies in India that are engaged in a business similar to that of Chemkart India Ltd. Accordingly, it is not possible to provide a comparison of key performance indicators of industry with Chemkart.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Managers

• Registrar: Bigshare Services Pvt Ltd
• Book Running Lead Manager: Smart Horizon Capital Advisors Private Limited

Business Model

Established in 2020, Chemkart India Ltd offers products across mainly seven product categories, i.e. Amino Acids, Health Supplement, Herbal Extract, Nucleotide, Protein, Sports Nutrition, and Vitamin. There are many more under other health products categories in different packaging sizes.

Company Growth Trajectory

For the financial year 2024, the company’s revenue from operations was ₹132.0269 crores, increasing from ₹131.3776 crores in FY 23 and ₹86.9805 crore in FY 22, growing at a CAGR of 23.20% between the financial years 2022 and 2024. Its EBITDA margin increased from 8.07% in FY 22 to 15.84% in FY 24.

Market Position

A one stop destination for various nutritional, health and sports supplement products, Chemkart India Ltd specialises in mainly amino acids. Its product assortment and customer-centric approach aims to fulfil the daily and aspirational requirements of the end customers with a focus on variety, affordability, quality and convenience.

How to Check Allotment Status of Chemkart India Ltd?

1. Visit the Registrar’s Website

Visit the official website of Bigshare Services Pvt Ltd and choose ‘IPO Allotment Status’ from ‘Solutions’. Click on any one of the servers, choose the company name from the dropdown and input either your application number, beneficiary ID or PAN number. Enter captcha and click on ‘Search’ to know the allotment status.

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

3. How to Apply for Chemkart India Ltd IPO?

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.