Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on October 21, 2025
- The company is engaged in the manufacturing and supplying of specialty chemicals with major focus on various emulsifiers.
• The company posted steady growth in its top and bottom lines for the reported periods.
• It is operating in a highly competitive and fragmented segment.
• Based on its recent financial performance, the issue is fully priced.
• Well-informed investors may park moderate 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 has its manufacturing plant at Plot No. E-10 MIDC, Lote Parshuram, Tal. Khed, Ratnagiri 415 722, Maharashtra, India since inception. The facility has a production capacity of 7,800 metric tons per annum as on March 31, 2025 which would be further increased to 12,000 metric tons per annum in the upcoming months, equipped with process control, innovative R&D centre, Quality Control and Application Laboratories.
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. The Company 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 facility can carry out reactions at temperatures ranging from 10°C to 250°C and pressure 5 kg to 8 kg/cm², the reactors are equipped with condenser, vacuum arrangement and receiver and high-speed stirred reactor. 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 proposes to establish a new manufacturing unit at Plot C-3, Lote Parshuram MIDC. The total construction area will be 1118.20 m².
Surprisingly the company has given a total employees strength of 53 on its payroll as of March 31, 2024 and missing the latest tally on this aspect.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 6111111 equity shares of Re. 10 each at a fixed price of Rs. 80 per share to mobilize Rs. 48.89 cr. The RI opens for subscription on October 24, 2025, and will close on November 07, 2025. The company is offering RI in the ratio of 1 for 2 to its eligible stakeholders as of the record date of October 10, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on NSE SME. The company is spending Rs. 1.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 19.45 cr. for working capital, Rs. 5.94 cr. capex for construction of new factory premises, Rs. 11.36 cr. capex on purchase of equipment/machineries, and Rs. 10.64 cr. for general corporate purposes. The minimum marketable lot for this RI is 500 shares and in multiples thereon, thereafter.
The RI is self-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. 12.22 cr. (12222222 equity shares) will stand enhanced to Rs. 18.33 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 146.67 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 41.18 cr. / Rs. 3.89 cr. (FY23), Rs. 66.71 cr. / Rs. 8.82 cr. (FY24), and Rs. 102.66 cr. / Rs. 13.30 cr. (FY25). It marked steady growth in its top and bottom lines for the reported periods. Its total borrowings of Rs. 25.59 cr. as of March 31, 2025 also raise a concern.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, 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. 131.90 on October 09, 2025, and opened on an ex-right basis at Rs. 127.60 on October 10, 2025. Since then, it has marked a high/low of Rs. 127.90 / Rs. 105.50. The scrip last closed at Rs. 121.45 as of October 21 2025. For the last 52 weeks’ it has posted a high/low of Rs. 269.43 / Rs. 85.61.
The promoters’ holding has been constant at 48.11% for the last three quarters ended with September 30, 2025. RI is at a discount of around 34.13% based on its last traded price of Rs. 121.45 as of October 21, 2025. The counter is well maintained above the RI price to tempt investors.
Conclusion / Investment Strategy
IEL is engaged in the manufacturing and supplying of specialty chemicals with major focus on various emulsifiers. The company posted steady growth in its top and bottom lines for the reported periods. It is operating in a highly competitive and fragmented segment. Based on its recent financial performance, the issue is fully priced. Well-informed investors may park moderate funds for long term.
Review By Dilip Davda on October 21, 2025
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 ).
Courtesy: https://www.chittorgarh.com/
