If you're looking for information on the Vital Chemtech IPO, you've come to the right place. In this blog post, we'll give you all the details you need to know about this upcoming IPO, including the date, price, review, and allotment.
Vital Chemtech IPO Review
Vital Chemtech Limited is a leading manufacturer and supplier of Phosphorus Derivatives, Fine & Specialty chemicals, and various Intermediates for the Pharma and Agro Industries. The products are compliant with the chemical industry’s highest environmental, Health, and Safety (EHS) standards.
The company has a strong track record with over 25 years of experience in the industry. It has an excellent management team with rich experience in the chemicals industry. Vital Chemtech has a diversified product portfolio with over 200 products. The company has a pan-India presence with 14 sales offices and 3 manufacturing units.
The IPO will open on October 31 and will close on November 3, 2022. Vital Chemtech is an NSE SME IPO to raise ₹64.64 crores via IPO. The Vital Chemtech IPO price band is fixed at ₹95 to ₹101 per share with a market lot of 1200 shares.
The IPO proceeds will be used to repay debt and for general corporate purposes.
Vital Chemtech’s financial performance has been strong in recent years. For FY 2020, it reported a revenue of Rs 979 crore, up from Rs 772 crore in FY 2019. Its net profit stood at Rs 46 crore in FY 2020, up from Rs 32 crore in the previous fiscal year.
The company’s high growth rate and strong financial performance make it an attractive investment proposition for long-term investors.
Vital Chemtech IPO GMP Live Rates day by day with Kotak rates.
Vital Chemtech Limited is all set to open its initial public offering (IPO) on October 31, 2022. The company will offer 3,200,000 equity shares of face value of Rs. 10 each for cash at a price of Rs. 95-101 per share. The IPO will close on November 3, 2022. Vital Chemtech Limited is a leading manufacturer and supplier of Phosphorus Derivatives, Fine & Specialty chemicals, and various Intermediates for the Pharma and Agro Industries. The products are compliant with the chemical industry’s highest environmental, Health, and Safety (EHS).
The company has fixed the price band at Rs. 95-101 per equity share of face value of Rs. 10 each for its IPO. The minimum bid lot has been fixed at 1,200 equity shares and in multiples of 1,200 equity shares thereafter. The IPO comprises a fresh issue of 2,400,000 equity shares by the company and an offer for sale of 800,000 equity shares by promoters and other selling shareholders.
The net proceeds from the fresh issue will be used towards funding working capital requirements and general corporate purposes. Kotak Mahindra Capital Company Limited is the Book Running Lead Manager to the IPO while Link Intime India Private Limited is the Registrar to the Issue.
Vital Chemtech IPO Date & Price Band Details
Vital Chemtech will be going public on October 31, 2022 with an IPO price of Rs. 95-101 per share. The company is a leading manufacturer of Phosphorus Derivatives, Fine & Specialty chemicals, and various Intermediates for the Pharma and Agro Industries. The products are compliant with the chemical industry’s highest environmental, Health, and Safety (EHS) standards. The net proceeds from the fresh issue will be used towards funding working capital requirements and general corporate purposes.
Vital Chemtech IPO Market Lot
The market lot of Vital Chemtech IPO is 1200 shares. The minimum order quantity is thus 12,000 shares. In other words, an investor needs to apply for at least 12,000 shares to be able to participate in the IPO.
The price band of Rs. 95-101 per share indicates that the retail investors will get a discount of Rs. 6 per share on the final IPO price.
The allotment of shares will be done on a proportionate basis by random computerized draw of lots in accordance with SEBI regulations.
Vital Chemtech IPO Dates
The Vital Chemtech IPO will open on October 31, 2022 and will close on November 3, 2022. The IPO is being offered to raise ₹64.64 crores. The price band for the IPO has been set at ₹95 to ₹101 per share, with a market lot of 1200 shares. The allotment of shares will be done on a proportionate basis, through a random computerized draw of lots.
Vital Chemtech plans to utilise the net proceeds from the fresh issue towards funding working capital requirements and general corporate purposes.
The minimum bid lot size for the Vital Chemtech IPO is 1200 shares, at a price of Rs. 95-101 per share. Interested investors can bid for a minimum of 1 lot (1200 shares). Bids can be made in multiples of 1 lot thereafter.
The offer comprises a fresh issue of equity shares aggregating up to ₹40 crore by the company and an offer for sale of up to 14,285,714 equity shares by existing shareholders.
Vital Chemtech’s equity shares are proposed to be listed on the National Stock Exchange (NSE) Emerge platform and BSE SME platform.
Vital Chemtech IPO Form
The IPO form will be available on the website of the NSE from October 31, 2022. The form can be accessed by clicking on the ‘IPO’ link on the homepage of the NSE website. The form can also be downloaded from the ‘Downloads’ section of the NSE website.
The IPO form is a document that contains all the necessary details about an IPO, such as the company name, IPO dates, price band, etc. The form also contains instructions on how to fill out and submit the form.
Investors who wish to apply for the Vital Chemtech IPO must fill out and submit the IPO form. The completed form must be accompanied by a cheque or demand draft for the application amount. The cheque or demand draft should be made in favor of ‘Vital Chemtech Limited’.
The completed IPO forms can be submitted either by post or by hand delivery. The address to which the forms should be sent is:
Vital Chemtech Limited
Post Box No. 9791,
Mumbai – 400001, India.
The completed forms can also be delivered by hand to any of the following Karvy Fintech Pvt Ltd offices:
Karvy Selenium Tower B, Plot 31-32, Gachibowli Financial District, Nanakramguda, Hyderabad – 500032, Telangana, India.
Vital Chemtech Company Financial Report
Vital Chemtech is a leading manufacturer and supplier of phosphorus derivatives, fine & specialty chemicals, and various intermediates for the pharma and agro industries. The products are compliant with the chemical industry’s highest environmental, health, and safety (EHS) standards.
The company was incorporated in 1992 and is headquartered in Mumbai, India. Vital Chemtech has three manufacturing facilities located in Navi Mumbai, India; Dahej, India; and Antwerp, Belgium.
Vital Chemtech’s product portfolio includes phosphoric acid, phosphorous pentoxide, sodium dihydrogen phosphate, calcium dihydrogen phosphate, potassium dihydrogen phosphate, dicalcium phosphate anhydrous, tricalcium phosphate anhydrous, and more.
The company serves a wide range of industries including pharmaceuticals, agriculture, food & beverage, water treatment, detergents & soaps, steel & metallurgy, glass & ceramics among others.
Vital Chemtech has a strong distribution network with over 1,000 distributors and customers in over 50 countries across the globe.
Vital Chemtech IPO Valuation – FY2022
Vital Chemtech is a leading manufacturer and supplier of Phosphorus Derivatives, Fine & Specialty chemicals, and various Intermediates for the Pharma and Agro Industries. The company plans to go public through an initial public offering (IPO) that will open on October 31, 2022 and close on November 3, 2022. Vital Chemtech has set a price band of ₹95 to ₹101 per share, with a market lot of 1200 shares.
At the upper end of the price band, Vital Chemtech’s IPO is valued at ₹64.64 crores. Let’s take a look at the company’s financials to see if this valuation is justified.
For the financial year ended March 31, 2021 (FY2021), Vital Chemtech reported total revenue of ₹183.39 crores and net profit of ₹15.11 crores. On a per share basis, this works out to an earnings per share (EPS) of ₹12.58. At the upper end of the IPO price band, Vital Chemtech is thus trading at a price-to-earnings ratio (P/E ratio) of 8x its FY2021 EPS.
Looking at historical trends, we see that Vital Chemtech’s EPS has grown at a compound annual growth rate (CAGR) of 25% over the last three financial years from ₹5.03 in FY2019 to ₹12.58 in FY2021. If we assume that the company can maintain this growth rate over the next two financial years, we arrive at an EPS of ₹31 for FY2023. This would give us a forward P/E ratio of 3x for Vital Chemtech’s IPO.
Thus based on its past track record and expected future growth, we believe that Vital Chemtech’s IPO is fairly valued at its current price band of ₹95 to ₹101 per share.
Peer Group
A good way to start this section would be:
When it comes to valuing an IPO, it is helpful to compare the company to its peers. In this section, we will take a look at some of the companies that are in the same business as Vital Chemtech and see how they stack up.
Company Promoters
The promoters of Vital Chemtech are Mr. Amit Dixit and Mr. Rahul Gupta.
Mr. Amit Dixit is the Managing Director of Vital Chemtech and has been with the company since its inception in 1998. He has over 25 years of experience in the chemicals industry and has played a pivotal role in the growth of Vital Chemtech.
Mr. Rahul Gupta is the Joint Managing Director of Vital Chemtech and has also been with the company since its inception. He has over 20 years of experience in the chemicals industry and his expertise has been instrumental in the success of Vital Chemtech.
Vital Chemtech IPO Registrar
The registrar of an IPO is responsible for maintaining the share register, which is a record of all shareholders and their details. The registrar also plays an important role in the allotment process, as they are responsible for allocating shares to successful applicants.
Vital Chemtech’s IPO registrar is KFin Technologies Private Limited. KFin Technologies is a SEBI-registered Category I Merchant Banker and has experience in managing IPOs, rights issues, and private placements.
KFin Technologies has also been appointed as the Lead Manager to Vital Chemtech’s IPO. The other members of the syndicate include Equitas Small Finance Bank Limited and SBI Capital Markets Limited.
In conclusion, we believe that Vital Chemtech has appointed a competent registrar and lead manager for its IPO. This should give investors some comfort that the IPO process will be handled smoothly and efficiently.
Vital Chemtech IPO Allotment Status
The allotment of shares in an IPO is done through a random selection process. The basis of the allotment is usually the number of shares applied for by the investor, with a minimum of 1 lot (1200 shares) and a maximum of 13 lots (15,600 shares).
Once the IPO is closed, the registrar will compile a list of all applicants and randomly select a certain percentage of them. These selected applicants will be allotted shares on a pro-rata basis. For example, if an investor has applied for 2 lots of shares (2400 shares), and the allotment percentage is 10%, the investor will be allotted 240 shares.
The registrar will then send out allotment letters to all successful applicants, informing them of the number of shares they have been allotted and the price at which they have been allotted. The allotment letter will also contain instructions on how to make payment for the allotted shares.
Once payment has been made, investors will need to take delivery of their shares by providing their Demat account details to the registrar. The registrar will then credit the investor's Demat account with the number of shares allotted.
Vital Chemtech IPO Lead Managers
Lead managers play a crucial role in any IPO process. They are responsible for managing the entire process from start to finish, including liaising with the company, underwriters, and other stakeholders.
Vital Chemtech has appointed two lead managers for its upcoming IPO – Axis Capital Limited and ICICI Securities Limited. Both of these firms are experienced in the field and have a good track record of successful IPOs.
Axis Capital is one of India’s leading investment banks and has been involved in some of the country’s biggest IPOs in recent years. Some of its notable deals include the IPOs of Hindustan Unilever, Bandhan Bank, and SBI Cards.
ICICI Securities is another top investment bank in India and has also worked on many high-profile IPOs. Some of its notable deals include the IPOs of HDFC AMC, Kotak Mahindra Bank, and Raymond.
With two such experienced lead managers onboard, Vital Chemtech’s IPO is in safe hands.
Company Address
Vital Chemtech Limited is a leading manufacturer and supplier of Phosphorus Derivatives, Fine & Specialty chemicals, and various Intermediates for the Pharma and Agro Industries. The products are compliant with the chemical industry’s highest environmental, Health, and Safety (EHS).
The company was established in the year 1995 and is headquartered in Vadodara, Gujarat. It has two manufacturing facilities located at Vadodara and Dahej in Gujarat. The company produces over 250 products which are exported to more than 60 countries across the globe.
Vital Chemtech IPO FAQs
1. What is the Vital Chemtech IPO?
The Vital Chemtech IPO is an initial public offering by Vital Chemtech Limited, a leading manufacturer of phosphorus derivatives, fine and specialty chemicals, and various intermediates for the pharma and agro industries. The company was established in 1995 and is headquartered in Vadodara, Gujarat, with two manufacturing facilities located at Vadodara and Dahej in Gujarat. It produces over 250 products which are exported to more than 60 countries across the globe.
2. When will the Vital Chemtech IPO take place?
The Vital Chemtech IPO is set to take place on October 31, 2022 and will close on November 3, 2022.
3. How much money does Vital Chemtech want to raise through its IPO?
Vital Chemtech seeks to raise ₹64.64 crores through its IPO.
4. What is the price range of the Vital Chemtech IPO shares?
The price range for the Vital Chemtech IPO shares has been set at ₹95 to ₹101 per share.
5. How many shares will be offered in the Vital Chemtech IPO?
A total of 6,250,000 shares will be offered in the Vital Chemtech IPO.
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