Phychem Technologies IPO

About Phychem Technologies IPO

The Phychem Technologies IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The offer consists of a fresh issue component. The fresh issue will include 27,00,000 equity shares of face value of ₹10 each aggregating up to ₹ [●] crores. The total number of shares and aggregate amount are yet to be finalised.

Phychem Technologies IPO’s price band is set at TBA to TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The minimum lot size investment for HNI is TBA.

Phychem Technologies offers a wide range of roto moulding compounds. They also provide job work services such as rotolining (internal lining of tanks and equipment for enhanced chemical resistance and durability) and toll pulverising (custom grinding of polymers into powder form as per client specifications). Moreover, they are authorised distributors of specific types of chemicals and compounds like paints and coatings, polypropylene compound, and speciality release agents.

Objectives of Phychem Technologies IPO

• Repayment in full or in part, of certain of their outstanding borrowings.

• Funding the capital expenditure towards procurement of plant and machinery.

• Funding to meet working capital requirements.

• General corporate purpose.

Industry Outlook

India stands 12th in the world in the export of plastics, as per the 2022 World Bank estimates. It has grown exponentially from 2014, when it was worth just 820 crores USD, as compared to the 2022 estimates, where it reached 2,700 crores USD. This growth has been a result of the constant efforts by the Indian government to promote the production and export of plastics, like setting up Plastic Parks.

The Government of India intends to take the plastic industry from a current level of ₹3,00,000 crores (US$ 3,780 crores) of economic activity to ₹10,00,000 crores (US$ 12,600 crores) in four to five years.

About Phychem Technologies

Phychem Technologies is engaged in the manufacturing of rotational moulding (roto moulding) compounds, which serve as a key raw material for producing a wide range of hollow plastic products through the rotational moulding process. Their product portfolio primarily comprises customised polyethylene-based compounds, formulated using Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), and other specialty additives.

They cater to a diverse base of customers across various industries such as building and construction, water management, agriculture, automotive, and consumer products. Their formulation and manufacturing capabilities enable them to deliver foam compound, stone effect, flame-retardant, anti-static, and custom-coloured compound depending on client needs.

Strengths of Phychem Technologies

• Wide range of products finding diverse applications in the roto moulding industry.

• Long-standing relationships with diversified customers across geographies.

• In-house manufacturing facility with equipped machines and processes.

• Focus on quality, environment, health and safety.

• Experienced promoters and management with extensive domain knowledge.

Risks of Phychem Technologies

• Any slowdown or shutdown in their manufacturing operations.

• Any deterioration in the quality of raw materials supplied.

• Exchange rate fluctuations.

• Competition from both domestic as well as multinational corporations.

• Technology failures or cyber-attacks or other security breaches.

Anchor Investor Bidding Date: TBA

Registrar: MUFG Intime India Private Limited

Book Running Lead Managers: Hem Securities Limited

Business Model

The company earns its revenue by manufacturing rotational moulding (roto moulding) compounds, which serve as a key raw material for producing a wide range of hollow plastic products through the rotational moulding process. Their product portfolio primarily comprises customised polyethylene-based compounds, formulated using Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), and other specialty additives.

Phychem Technologies Growth Trajectory

(Restated Data)

Phychem Technologies' total income for FY25 was ₹51.11 crores, whereas in FY24 and FY23 it was ₹47.59 crores and ₹43.19 crores, respectively.

The profit after tax for FY25 was ₹2.84 crores, whereas in FY24 and FY23 it was ₹1.69 crores and ₹1.32 crores, respectively.

Their EBITDA for FY25 was ₹4.37 crores, whereas in FY24 and FY23 it was ₹2.76 crores and ₹1.84 crores, respectively.

Phychem Technologies Market Position

The company exports to countries such as Bahrain, Bangladesh, Cameroon, Guinea, Guinea-Bissau, Iraq, Kuwait, Lithuania, Mauritius, Nepal, Nigeria, Oman, Poland, Russia, Saint Lucia, Saudi Arabia, Slovenia, South Africa, Taiwan, Thailand, Turkey, and the U.A.E.

As of 31 March 2025, the company’s total income, profit after tax, and EBITDA were ₹51.113 crores, ₹2.842 crores, and ₹4.369 crores, respectively.

How to apply for Phychem Technologies IPO?

● Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.

● Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.

● Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.

● Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.

● Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.