Biopol Chemicals Limited is engaged in the business of trading, manufacturing and distribution of specialty chemicals under the categories of silicones, emulsifiers, biochemicals and polyelectrolytes. The product portfolio consists of 66 products which comprises of 40 silicone-based products, 5 emulsifier-based products, 15 biochemical products and 6 polyelectrolyte products. These products are used in applications across various industry segments, including softeners, emulsions and hardeners for textiles; silicone fluids and cleaning chemicals for home care; silicone adjuvants and surfactants in agriculture; and release agents in industrial chemicals. In addition, the Company also provides technical consultancy services to customers. These services are offered either in connection with the sale of the products or in certain cases, separately at the request of customers for specific requirements. The consultancy services include support on the application of specialty chemicals in textile processing, guidance relating to the manufacture of dyes and advice on the use of specialty chemicals in industrial formulations, enabling customers in achieving specific application requirements. Our Company operates on a business-to-business (B2B) model, catering to institutional clients. They conduct the business through a combination of direct sales and a network of distributors, enabling them to serve customers across both domestic and international markets. In the domestic market, their sales are spread across several regions, including West Bengal, Gujarat, Maharashtra, Tamil Nadu and Karnataka, with a significant portion of revenue derived from West Bengal and Gujarat. While the exports are currently focused on Bangladesh. As on the date of this RHP, company has 4 (four) establishments located in Gujarat and West Bengal, comprising the manufacturing unit, corporate office and warehouse in West Bengal; and the registered office in Gujarat. Their manufacturing unit has an installed capacity of 18,25,000 litres per annum of the products. During the period upto 31.12.25 FY26 and FY25, they manufactured 11,99,980 litres and 17,08,082 litres, resulting in a capacity utilisation of 87.27% and 93.59%, respectively. Further, as a part of the expansion plan, they propose to purchase an industrial land ad-measuring 2,851 square meters in the state of Gujarat from the NetProceeds of the Issue. As per financial performance, Biopol Chemicals Limited has posted total income / net profits of Rs 27.36 / 2.20 Cr (FY23), Rs 25.47 / Rs 2.96 Cr (FY24), Rs 49.15 Cr / 4.33 Cr (FY25) and Rs 48.96 Cr / 6.00 Cr (upto 31.12.25 FY26). So as per previous financials data, company has shown good growth, but trade receivables are around 33% of FY25 total sales and net cash flow is also negative. As on January 16, 2026, the Company has a confirmed order book of approximately Rs 1,330.85 lakhs, excluding applicable taxes. Company has an average EPS of Rs 4.91 and average RoNW of 31.63% for last three fiscals. Issue is priced at a P/BV of 4.37 as per NAV of Rs 24.69/- as on 31.12.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 39.39, 26.95 and 14.58 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Smart Horizon Capital Advisors Private Limited is associated with this IPOs, and has handled 19 IPOs in last three fiscal years. From last 10 IPOs, two opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 10 IPOs, five are trading below issue price and remaining all are trading above issue price or at par. (as on 27.01.26 ) As per financials, Biopol Chemicals Limited has shown good growth, RoNW is 32% and P/E is 39.39, 26.95 and 14.58 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced. Also higher trade receivables and negative cash flow raises doubts for future growth. Company is in the business of trading, manufacturing and distribution of specialty chemicals, which is very competitive business segment. Performance of BRLM is average post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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