Ujin Pharma IPO: Chemical Products Supplier Files DRHP With SEBI
The company intends to invest ₹61.7 crore in Altra Agro-Chem and ₹21.6 crore in Altra Pharma-Chem, while ₹25 crore will be used to repay borrowings.
Ujin Pharma IPO: Ujin Pharma has filed DRHP papers with SEBI for an IPO comprising a fresh issue of 1.18 crore shares and an OFS of 72.82 lakh shares. The company plans to invest in associate firms, repay debt, and support future business growth.
Ujin Pharma IPO: Mumbai-based chemical products supplier Ujin Pharma has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on 22 June to raise funds through an initial public offering (IPO).
The proposed IPO comprises a fresh issue of 1.18 crore equity shares and an offer-for-sale (OFS) of 72.82 lakh equity shares by promoters. The company plans to use the proceeds for investments in associate companies, debt repayment, and general corporate purposes.
What Is the Size of Ujin Pharma IPO?
The IPO consists of 1.91 crore equity shares in total.
Out of this, 1.18 crore equity shares will be issued through a fresh issue, while promoters will offload 72.82 lakh equity shares through the OFS route. The company is yet to announce the price band and issue schedule.
What Does Ujin Pharma Do?
Ujin Pharma is engaged in the distribution of solvents, specialty chemicals, acids, monomers, pharmaceutical raw materials, and nutraceuticals.
Its products cater to industries such as pharmaceuticals, agrochemicals, specialty chemicals, petrochemicals, industrial manufacturing, and automobiles.
The company operates warehouses and storage facilities in Bhiwandi, Maharashtra, and Kandla, Gujarat. It also has a sourcing network of 1,277 suppliers.
Apart from distribution, the company has expanded into value-added chemical processing through its subsidiary Shiv Shakti Oxalate, which operates a manufacturing facility in Pune.
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How Will the Company Use the IPO Proceeds?
According to the DRHP, Ujin Pharma plans to invest ₹61.7 crore in Altra Agro-Chem and ₹21.6 crore in Altra Pharma-Chem through subscription to equity shares.
Following these investments, both associate companies will become subsidiaries of Ujin Pharma.
The company will also utilise ₹25 crore from the fresh issue proceeds towards repayment of certain borrowings, while the remaining amount will be used for general corporate purposes.
How Has Ujin Pharma Performed Financially?
For FY25, Ujin Pharma reported revenue of ₹1,628.8 crore, compared with ₹1,490.9 crore in the previous financial year, reflecting a growth of 9.3%.
However, net profit declined 10.7% to ₹14.3 crore in FY25 from ₹16 crore a year earlier.
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Who is managing the IPO?
SMC Capitals and Marwadi Chandarana Intermediaries Brokers have been appointed as the book-running lead managers to the issue.