The Patel Chem Specialities IPO opens for subscription from July 25 to July 29, 2025, aiming to raise ₹58.80 crore through a fresh issue of equity shares priced between ₹82 and ₹84 per share. As a manufacturer and exporter of pharmaceutical excipients and specialty chemicals, the company supplies essential inputs to the pharmaceuticals, food, cosmetics, and industrial sectors. Patel Chem Specialities operates certified manufacturing facilities in Ahmedabad and Himmatnagar with an annual capacity exceeding 7,200 MT and a global client base spanning East Asia, Europe, the Middle East, North America, and Southeast Asia.
₹25
₹84
₹110.00
Expert Opinions
The Patel Chem Specialities IPO is entering the SME market with constructive sentiment, reflecting recognition for its consistent growth in specialty chemicals and pharmaceutical excipients. The company’s strengths include a diversified product portfolio, export presence across several global markets, certified manufacturing facilities, and experienced promoters. For FY 2025, the Patel Chem Specialities IPO demonstrates strong profitability and capital efficiency, with Return on Equity (ROE) at 29.85%, Return on Capital Employed (ROCE) at 36.26%, and a Net Asset Value (NAV) of ₹20.44.
However, key risks include dependence on select states and countries for both sourcing and sales, the absence of long-term supplier contracts, and exposure to regulatory, operational, and foreign exchange challenges. Over the long term, Patel Chem’s steady margins, sound management, and international foothold offer promising prospects, but prudent monitoring of supply, capacity utilization, and compliance risks will be crucial for sustained returns.
Investor Considerations
Investors considering the Patel Chem Specialities IPO should note the company’s strong performance, with FY 2025 revenue at ₹105.55 crore and profit after tax rising to ₹10.57 crore, underpinned by consistent growth and expanding export markets. The specialty chemical sector continues to benefit from increasing demand in pharmaceuticals, food, and industrial applications, ensuring a positive outlook for players like Patel Chem Specialities.
The Patel Chem Specialities IPO valuation for FY 2025 reflects a Price to Book Value of 4.11, a healthy PAT margin of 10.01%, and a conservative debt/equity ratio of 0.42, indicating both profitability and sound financial management. Growth prospects are supported by the company’s international presence, quality certifications, and capacity expansions. However, risks include dependence on a limited number of suppliers and geographies, as well as exposure to regulatory changes and currency fluctuations. Long-term investors may find value given consistent financials and sector tailwinds, while short-term gains are less certain.
| Date | GMP | Trend |
|---|---|---|
| 31 Jul 2025 19.24 | ₹25 | Down |
| 30 Jul 2025 11.04 | ₹35 | --- |
| 29 Jul 2025 19.58 | ₹35 | Down |
| 28 Jul 2025 20.36 | ₹40 | Up |
| 25 Jul 2025 10.51 | ₹35 | Up |
| 24 Jul 2025 10.35 | ₹20 | --- |
| 23 Jul 2025 10.50 | ₹20 | Up |
| 22 Jul 2025 10.48 | ₹15 | Up |
| 21 Jul 2025 10.33 | ₹10 | --- |
| 20 Jul 2025 13.05 | ₹10 | Up |
| 19 Jul 2025 12.11 | ₹00 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Patel Chem Specialities IPO’s listing performance. With a final GMP of ₹25, it projected a premium of 29.76% over the issue price of ₹84. The stock listed at ₹110.00, delivering a gain of 30.95%. This resulted in a small prediction error of just 1.19%, where the GMP accurately predicted both the positive direction and magnitude of the gain, demonstrating high reliability in this case.
Patel Chem Specialities IPO Current GMP is ₹25.
Patel Chem Specialities IPO Expected Returns is 29.76%.
Patel Chem Specialities IPO estimated listing price is ₹109.