– By Dilip Davda
- This is the 2nd RI from the company since October 2025.
- The company marked growth in its top and bottom lines for the reported periods.
- Based on its recent average financial data, and the market price, the issue appears fully priced.
- Well-informed investors may park funds for long term.
ABOUT COMPANY:
Indian Emulsifiers Ltd., (IEL) was incorporated with the objective of Manufacturing and Supplying of Specialty Chemicals i.e., Esterification / Transesterification, Sulphation, Quaternization, Phosphorylation, Emulsification, Imidazoline, Wax Emulsion, Amphoterics, Polymerization, Poly-quaternary compounds and a variety of specialty emulsifiers.
The Company was formed with a vision to become a pioneer specialty chemicals manufacturer. The Company got ISO Certified in the year 2021 as ISO 9001:2015. It is manufacturing Specialty chemicals with a focus on Esters, Phosphate Esters, Imidazolines, Succinimides, Sulfosuccinates, Specialty Emulsifiers and formulated products. IEL serves specialty chemicals to a wide range of industries such as Food, Personal care, Textiles, Mining, Industrial and Institutional Cleaners, Metal Working, Oil & Gas Industry, Lubricants and Other Industries.
The manufacturing facility has a production capacity of 12,000 metric tons per annum. The capacity has been increased from 4,800 MT per annum to 7,800 MT per annum then to 12,000 MT per annum due to additional Reactors and infrastructure installed, equipped with process control, innovative R&D centre, Quality Control and Application Laboratories. Multiple high-pressure stainless-steel reactors equipped to deliver yields from 100 Kg to 8,000 kg per batch providing a high level of flexibility.
As part of the strategic diversification and expansion of business into the manufacturing and supply of specialty chemicals, including Esterification / Transesterification, Sulphation, Quaternization, Phosphorylation, Emulsification, Imidazoline, Wax Emulsion, Amphoterics, Polymerization, Poly-quaternary compounds and a variety of specialty emulsifiers the Company also has under construction a new manufacturing unit, at Plot C-3, Lote Parshuram MIDC that is expected to become live by the end of the year.
IEL, through its wholly owned subsidiary Spartan Professional Products Private Limited, intends to establish a diversified and resilient business model by operating across both white label manufacturing
for third-party clients and proprietary (own label) product lines. This dual approach is aimed at generating stable revenues while simultaneously building brand-led value, leveraging the Company’s core strengths in emulsifiers, surfactants, and preservatives to transition from a raw material supplier to a manufacturer of finished formulations. This strategic shift is expected to enhance margins, improve control over product quality, innovation, and customization, and enable Spartan to cater to a broad customer base, including institutional buyers, direct-to-consumer (D2C) brands, and established retail chains. As of March 31, 2026, it had 50 employees on its payroll.
ISSUE DETAILS:
The company is coming out with Rights Issue (RI) of 18333222 equity shares of Rs. 10 each at a fixed price of Rs. 27 per share to mobilize Rs. 49.50 cr. The RI opens for subscription on November 16, 2026, and will close on December 01, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of October 27, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on NSE SME Emerge. The company is spending Rs. 0.55 cr. for this RI process, from the net proceeds, Rs. 9.56 cr. for investment in overseas subsidiary – UDA Polaris Specialty chemicals Inc. towards working capital, Rs. 6.00 cr. towards investment in Chemical Brothers Enterprises Pv.t Ltd., Rs. 22.81 cr. for incremental working capital needs, and Rs. 10.58 cr. for general corporate purposes.
The market lot for this RI is 500 shares and in multiples thereon, thereafter.
The RI is solely lead managed by the company itself, and Maashitla Securities Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 18.33 cr. (18333222 equity shares) will stand enhanced to Rs. 36.67 cr. (36666444shares). Based on the RI pricing, the company is looking for a market cap of Rs. 99.00 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit of Rs. 102.66 cr. / Rs 13.30 cr. (FY25), Rs. 160.19 cr. / Rs. 16.26 cr. (FY26). The offer document is missing its latest financial data. For H1 of FY27 ended on Sept. 30, 2026, it has earned a net profit of Rs. 15.50 cr. on a total income of Rs. 134.00 cr. It posted growth in its top and bottom lines for the reported periods.
DIVIDEND POLICY:
The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: IEML (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 37.00 on October 26, 2026, and opened on an ex-right basis at Rs. 33.00 on October 27, 2026. Since then, it has marked a high/low of Rs. 37.80 / Rs. 31.50. The scrip last closed at Rs. 36.00 as of November 13, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 110.34 / Rs. 31.50. The counter is currently under ESM: Stage 1.
The promoters’ holding has been at 32.64% for the last two quarters ended on September30, 2026. The counter is trading well above the RI price, with vested interest operations.
CONCLUSION:
This is the 2nd RI from IEL since October 2025. The previous RI was in the ratio of 1 for 2 at a price of Rs. 70 per share. The company marked growth in its top and bottom lines for the reported periods. It is under process of expanding its capacities, expected to be on stream by the end of this year. Based on its recent average financial data, and the market price, the issue appears fully priced. Well-informed investors may park funds for long term.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
