Biopol Chemicals IPO

BSE SMELot: 1200Chemicals

LISTEDSME

Price Band

₹102 - ₹108

Lot Size

1,200

Issue Size

₹31.26 Cr

GMP

₹0

Subscription

Content

IPO Schedule

Open

6 Feb

10 Feb

Allotment

11 Feb

Listing

13 Feb

About Biopol Chemicals

Biopol Chemicals Limited is a specialty chemicals company engaged in the manufacturing, trading, and distribution of specialty chemical products. The company operates primarily on a B2B model, supplying chemicals to institutional and industrial customers across multiple sectors such as textiles, home care, agriculture, and industrial manufacturing. The company began its journey in 2005 as a proprietorship firm and later transformed into a corporate entity in 2023. Over time, it has expanded its product portfolio to 66 specialty chemical products, including silicone-based products, emulsifiers, biochemicals, and polyelectrolytes. It also provides technical consultancy services to help customers optimize chemical usage in their processes. With growing demand for specialty chemicals in India and export markets (notably Bangladesh), Biopol Chemicals is positioning itself as a niche supplier with customized formulations and technical expertise.

Business overview

Biopol Chemicals Limited manufactures and trades specialty chemicals used across different industrial applications.

Product Portfolio (66 Products)

Category	No. of Products
Silicone-based chemicals	40
Emulsifiers	5
Biochemicals	15
Polyelectrolytes	6

Application Areas:

Textile softeners & emulsions
Home care cleaning chemicals
Agricultural surfactants
Industrial release agents

The company also offers technical consultancy services, assisting clients with formulation guidance and chemical application solutions.

📊 Product Mix (visual)

Silicones ██████████████████
Biochemicals ███████
Polyelectrolytes ████
Emulsifiers ██

Industry overview

India’s chemical industry is one of the most diversified globally, covering over 80,000 commercial products. Specialty chemicals represent the fastest-growing segment.

Indicator	Value
India’s chemical market (2024)	₹21.5 lakh crore
Global rank	6th largest producer
Expected size (2040)	₹86 lakh crore
Contribution to GDP	~7%

Growth Drivers:

Textile and apparel industry expansion
Agriculture modernization
Demand for home care products
Industrial manufacturing growth
Export opportunities

📈 Industry Growth Trend (illustrative)

2024 ████
2028 ███████
2035 ███████████
2040 ███████████████

Risk factors

Business & Market Risks

The company depends on demand from textile, agriculture, and industrial sectors. A slowdown in any of these industries could reduce sales.
Competition from larger specialty chemical manufacturers may pressure pricing and margins.

Operational Risks

Chemical manufacturing involves environmental and safety risks. Any accident, leakage, or regulatory breach could disrupt operations.
Insurance coverage may not fully cover losses from major industrial incidents.

Financial Risks

High working capital requirements for raw materials and inventory.
Dependence on borrowings exposes the company to interest rate fluctuations.

Regulatory Risks

Subject to environmental laws, pollution control norms, and chemical handling regulations.
Any change in compliance requirements could increase operating costs.

IPO & Market Risks

As a first-time listed company, there is no assurance of post-listing liquidity or stable share price.

Promoters and promoter group

Promoters:

Mr. Santanu Sarkar
Mr. Vedant Sarkar

They have long experience in chemical trading and manufacturing.

The promoter group does not have any material conflicting businesses.

Management and key personnel

Name	Designation
Mr. Santanu Sarkar	Chairman & Managing Director
Mr. Vedant Sarkar	Whole-Time Director
Mr. Sandip Choudhury	CFO
Ms. Deepti Nama	Company Secretary

Management combines technical, operational, and financial expertise.

Litigation and regulatory matters

Entity	Nature	Status
Company	Tax proceedings	Minor
Promoters	Criminal / SEBI actions	Nil material
Directors	Litigation	Nil

No litigation threatens business continuity.

Financials

Year	Revenue	PAT	Net Worth
FY23	1,933	53	179
FY24	2,547	296	920
FY25	4,915	433	1,353
9M FY26	4,897	600	1,954

📊 Revenue Growth

FY23 ███
FY24 █████
FY25 ████████
FY26 ██████████

Cash flows

Year	Operating CF	Investing CF	Financing CF
FY23	Positive	Negative	Positive
FY24	Positive	Negative	Positive
FY25	Strong Positive	Expansion Capex	Borrowings

Key ratios

Ratio	FY23	FY24	FY25
EPS (₹)	3.78	5.47	7.59
ROE (%)	17%	22%	32%
Debt-Equity	0.75	0.57	0.38
EBITDA Margin	12%	14%	18%

Objects of the issue

IPO proceeds will be used for:

Working capital requirements
Purchase of new machinery
Capacity expansion
General corporate purposes

Offer structure

Component	Shares
Fresh Issue	28,94,400
OFS	Nil
Market Maker	As per SME norms
Net Issue	Balance

Allocation:

QIB – up to 50%
Retail – minimum 35%
NII – minimum 15%

Valuation

Valuation is based on:

EPS growth
Peer comparison (Rossari Biotech, Fineotex, Indian Emulsifiers)
Return ratios
Industry outlook

Capital structure

Aspect	Impact
Equity base	Increases
Promoter holding	Majority retained
Net worth	Strengthens
Debt ratio	Improves

Related party transactions

Nature	Amount (₹ Lakhs)
Purchase from promoter entity	271.27
All transactions are disclosed and at arm’s length.

Material contracts

Issue Agreement
Underwriting Agreement
Registrar Agreement
Market Maker Agreement
Escrow Agreement

Corporate governance

Independent directors
Audit Committee
NRC Committee
Stakeholder Committee
SEBI LODR compliance
Internal audit system

Mmanagement discussion and analysis (MDA)

Management attributes growth to:

Expansion in product portfolio
Increased industrial demand
Entry into export markets
Improved margins
Better operational efficiency

Future Strategy:

Expand manufacturing capacity
Launch new formulations
Strengthen exports
Improve profitability

Outlook:
Management expects sustained growth driven by specialty chemical demand in textiles, agriculture, and industrial sectors.