The Renol Polychem IPO is generating significant buzz as it prepares to hit the NSE SME platform. This comprehensive guide delivers everything potential investors need – from real-time Grey Market Premium (GMP) tracking (post-open) and in-depth financial analysis to step-by-step application instructions and expert recommendations. Discover if this masterbatch manufacturer deserves your investment capital.
About Renol Polychem IPO Details
The Renol Polychem IPO is a significant event for the specialty chemicals sector, specifically targeting growth in the plastic additives market.
- Issue Type: 100% Fresh Issue
- Total Issue Size: 24,54,000 shares (Aggregating up to ₹25.77 Crores)
- Price Band: ₹100 to ₹105 per share
- Face Value: ₹10 per share
- Market Lot Size: 1,200 Shares
- Minimum Investment (Retail): ₹126,000 (1 lot at lower band) / ₹132,000 (1 lot at upper band). *Note: Retail category requires a minimum application of 2 lots (2,400 shares) – see Lot Size section.*
- Listing Exchange: NSE SME
- Book Running Lead Manager (BRLM): Corporate Makers Capital Ltd.
- Registrar to the Issue: Skyline Financial Services Private Ltd.
- Market Maker: Asnani Stock Broker Private Limited (Reserved: 1,48,800 shares, ₹1.56 Cr)
- Net Public Offer: 23,05,200 shares (₹24.20 Cr)
About Renol Polychem Ltd.: Company Profile
Incorporated in 2008 and headquartered in Rajkot, Gujarat, Renol Polychem Limited is a specialized manufacturer and supplier of critical additives and compounds for the plastics industry. The company leverages technical expertise to serve diverse sectors reliant on plastic components.
- Core Business: Production of colour masterbatches, plastic masterbatches, industrial chemicals, impact modifiers, plastic pigments, and polymer compounds.
- Product Portfolio:
- Colour Masterbatches: Extensive range (Green, Red, Yellow, Orange, Pink, Blue, Brown, Violet, Ivory, White, Maroon, Silver, Multicolor, Black) for moulding, extrusion, and films.
- Filler Masterbatches: Talc and Calcium Carbonate-based fillers enhancing cost-efficiency and mechanical properties.
- Additive Masterbatches: UV stabilizers, antioxidants, slip & anti-block agents, processing aids, flame retardants.
- Polymer Compounds & Pigments: High-performance pigments and modifiers boosting strength, flexibility, and durability (crucial for pipes, fittings).
- Key Applications: Plastic Packaging (Flexible & Rigid), Automotive Components, Household & Consumer Goods, Electrical & Electronics, Textiles & Fibers, Agricultural Films & Pipes.
- Competitive Strengths:
- Experienced management team.
- Diversified product portfolio catering to a broad customer base.
- Established manufacturing facility and strong vendor/customer relationships.
- Positioned in the growing specialty chemicals and plastics additives market.
- Employee Strength: 15 (as of September 30, 2024).
Renol Polychem IPO GMP (Grey Market Premium) Today – 2025
- Current GMP Today: ₹10, The Grey Market Premium (GMP) for the Renol Polychem IPO will become active closer to or during the subscription period (July 31 – August 4, 2025). GMP reflects unofficial market sentiment about the potential listing price premium over the issue price.
- Where to Check Live GMP: Once the IPO opens, live GMP updates will be tracked by major financial news portals and dedicated IPO websites. Check back here closer to the subscription dates for potential updates or visit our dedicated IPO GMP tracker page [Internal Link Placeholder – e.g., link to a GMP tracking page on moneyadvizor.com].
- Understanding GMP: A positive GMP (e.g., ₹8) suggests the market expects shares to list at ₹8 above the issue price. A negative GMP (or ‘Discount’) indicates expected listing below issue price. GMP is highly speculative and volatile.
Note: GMP fluctuates daily. Check our IPO GMP Tracker for real-time updates.
Renol Polychem Company Financial Data (Year-wise)
Renol Polychem has demonstrated explosive revenue growth recently, although the sustainability of this pace and the significant jump in profitability warrant close scrutiny. Here’s a breakdown of their financial performance:
Renol Polychem Ltd. Financial Highlights (Restated, Amounts in ₹ Crore)
| Period Ended | 31 May 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Total Assets | 25.86 | 23.41 | 15.49 | 10.28 |
| Total Revenue | 12.02* | 62.56 | 6.52 | 41.86 |
| Profit After Tax (PAT) | 1.14* | 5.00 | 1.53 | 0.73 |
| EBITDA | 1.60* | 7.07 | 2.18 | 1.14 |
| Net Worth | 14.47 | 13.33 | 8.69 | 2.71 |
| Reserves & Surplus | 8.98 | 7.84 | 3.20 | – |
| Total Borrowings | 5.28 | 6.95 | 2.58 | 5.36 |
*Note: Figures for 31 May 2025 represent only 2 months of the financial year (FY 2025-26) and are not annualized. The FY25 (Mar 31, 2025) figures show dramatic YoY growth compared to FY24.*
Key Observations:
- Explosive FY25 Growth: Revenue surged by 859% (₹6.52 Cr to ₹62.56 Cr) and PAT grew by 226% (₹1.53 Cr to ₹5.00 Cr) from Mar 2024 to Mar 2025. Investors must assess the drivers (new contracts, market share gain, low base?) and sustainability.
- Asset & Net Worth Growth: Assets and Net Worth have grown significantly, supporting expansion.
- Debt Management: Borrowings increased in FY25 but decreased slightly by May 2025. Part of the IPO proceeds are earmarked for debt repayment.
IPO Application & Lot Size Details
Applying for the Renol Polychem IPO involves understanding the lot structure:
- Market Lot: 1,200 Shares
- Minimum Application:
- Retail Individual Investor (RII): 2 Lots (2,400 Shares). Investment: ₹240,000 (lower band) to ₹252,000 (upper band).
- High Net Worth Individual (HNI): Minimum 3 Lots (3,600 Shares). Investment: ₹360,000 to ₹378,000.
- Application Multiples: In multiples of 1 Lot (1,200 Shares) thereafter.
- How to Apply: Through your bank’s ASBA (Application Supported by Blocked Amount) facility via net banking, or through your trading account with a broker (like Zerodha, Upstox, Groww, ICICI Direct, HDFC Securities, etc.). UPI is the primary payment method; ensure mandate confirmation by 5 PM on August 4, 2025.
IPO Reservation Quota (Category-wise Allocation)
The shares are allocated to different investor categories as follows:
Renol Polychem IPO Reservation Structure
| Investor Category | Shares Offered | Percentage of Total Issue |
|---|---|---|
| Market Maker | 1,48,800 | 6.06% |
| Qualified Institutional Buyer (QIB) | 6,40,800 | 26.11%* |
| Non-Institutional Investor (NII/HNI) | 3,49,200 | 14.23% |
| Retail Individual Investor (RII) | 13,15,200 | 53.59% |
| Total Shares Offered | 24,54,000 | 100.00% |
*Note: The provided data specifies “6,40,800 allocated to QIB” but doesn’t show a percentage. Calculation: 640,800 / 2,454,000 = ~26.11%. The NII and RII percentages are explicitly stated.*
IPO Promoter Holding Details
- Promoters: Mr. Bhaveshbhai Mansukhbhai Harsoda and Mr. Naitik Bhaveshbhai Harsoda.
- Pre-IPO Shareholding: 99.99%
- Post-IPO Shareholding: 69.11%
- Equity Dilution: ~30.88% (due to the fresh issue). Promoters retain a significant majority stake post-listing.
IPO Timeline (Tentative Schedule)
Mark your calendars with these critical dates:
Renol Polychem IPO Key Dates
| Event | Tentative Date | Day |
|---|---|---|
| IPO Open Date | July 31, 2025 | Thursday |
| IPO Close Date | August 4, 2025 | Monday |
| Cut-off for UPI Confirmation | 5:00 PM, Aug 4, 2025 | Monday |
| Basis of Allotment | August 5, 2025 | Tuesday |
| Initiation of Refunds | August 6, 2025 | Wednesday |
| Credit of Shares to Demat | August 6, 2025 | Wednesday |
| Tentative Listing Date | August 7, 2025 | Thursday |
Note: These dates are tentative and subject to change. Always refer to official BSE/NSE notices or the RHP for final dates.
IPO Investor Category Reservations
As detailed in the Reservation Quota table above (Section 7), the allocations are:
- QIB: 26.11% (6,40,800 shares)
- NII/HNI: 14.23% (3,49,200 shares)
- RII: 53.59% (13,15,200 shares)
- Market Maker: 6.06% (1,48,800 shares)
IPO Anchor Investor Details
- Status: As per the information provided in the RHP and the issue structure (entirely fresh issue on NSE SME), there is no specific allocation mentioned for Anchor Investors in this IPO. SME IPOs typically do not have an anchor investor portion like mainboard IPOs. The QIB portion is available for subscription by all eligible QIBs during the bidding period.
IPO Key Performance Indicators (KPIs)
Evaluating Renol Polychem’s efficiency and valuation requires analyzing key metrics:
Renol Polychem Financial Ratios (As of March 31, 2025)
| KPI | Value | Interpretation |
|---|---|---|
| Return on Equity (ROE) | 45.37% | Very high, indicates efficient use of shareholder capital. Sustainability is key. |
| Return on Capital Employed (ROCE) | 64.18% | Extremely high, suggests excellent pre-tax profitability relative to capital used. |
| Return on Net Worth (RoNW) | 45.37% | Same as ROE (Net Worth = Equity). |
| Debt-to-Equity Ratio | 0.52 | Moderate leverage; manageable but part of IPO proceeds for repayment. |
| PAT Margin | 8.02% | Healthy net profit margin. |
| EBITDA Margin | 11.36% | Solid operational profitability. |
| Price to Book Value (P/BV) (Post-IPO) | 4.32 | Based on post-issue Net Worth. Valuation appears full. |
| Earnings Per Share (EPS) (Pre-IPO) | ₹9.10 | Based on FY25 (Mar) PAT and pre-issue shares. |
| Earnings Per Share (EPS) (Post-IPO) | ₹8.62 | Based on FY25 (Mar) PAT and post-issue shares. |
| Price-to-Earnings (P/E) (Pre-IPO) | 11.54x | Based on upper price band (₹105 / ₹9.10). |
| Price-to-Earnings (P/E) (Post-IPO) | 12.18x | Based on upper price band (₹105 / ₹8.62). |
*Note: Post-IPO P/BV is calculated as (Issue Price * Post-IPO Shares) / Post-IPO Net Worth. P/E ratios use FY25 (Mar 31, 2025) earnings.*
IPO Company Contact Details
- Registered Office:
Renol Polychem Ltd.
307, Sanskar Heights NR RA Circle,
150 FT Ring Road, Mavdi,
Rajkot, Gujarat – 360004 - Phone: +91-9723780726
- Email: compliance@renolpolychem.com
- Website: https://www.renolpolychem.com/
IPO Registrar Details
- Registrar Name: Skyline Financial Services Private Ltd.
- Phone: 022-28511022
- Email: ipo@skylinerta.com
- Website: https://www.skylinerta.com/ipo.php
- Role: Handles application processing, allotment, refunds, and demat credit.
IPO Recommendation: Buy or Not?
The decision to subscribe requires weighing the pros and cons against your risk appetite:
Arguments FOR Subscription (Positive):
- Exceptional Recent Growth: Stellar revenue (859%) and profit (226%) growth in FY25 is highly attractive.
- Strong Profitability Metrics: Impressive ROE (45.37%) and ROCE (64.18%) indicate high efficiency.
- Healthy Margins: PAT Margin (8.02%) and EBITDA Margin (11.36%) are solid for the sector.
- Growing Industry: Positioned in the specialty chemicals and plastic additives market, driven by increasing plastic usage across industries.
- Experienced Promoters: Founders retain significant stake (69.11% post-IPO), aligning interests.
- Moderate Valuation (Pre-Growth): Pre-IPO P/E of 11.54x isn’t excessive relative to the growth shown.
Arguments AGAINST Subscription (Risks/Cautions):
- Sustainability Concerns: The astronomical growth in FY25 raises questions. Can this pace continue? Was it driven by one-off factors or a sustainable expansion?
- Full Post-IPO Valuation: Post-IPO P/E of 12.18x and P/BV of 4.32x factor in much of the recent success, leaving less margin of safety.
- SME Listing Risks: SME stocks often have lower liquidity and higher volatility compared to mainboard listings.
- Limited Track Record at Scale: The company’s performance at this significantly larger scale (₹62 Cr revenue) is very new.
- Dependence on Plastics Market: Performance is tied to the cyclicality of the plastics and manufacturing sectors.
- Small Scale: Despite growth, it remains a relatively small player. Execution risks in utilizing IPO proceeds for expansion exist.
Expert Review Snapshot (Dilip Davda – Renowned IPO Analyst):
“RPL is engaged in manufacturing of colour masterbatches, pigments, and related products. The company posted growth in its top lines for the reported periods. Boosted profits from FY24 onwards raises eyebrows and concern over its sustainability. Based on its recent financial data, the issue appears fully priced. Small paid-up equity capital post IPO indicates longer gestation for migration. Well-informed/cash surplus investors may park moderate funds for medium term.”
Conclusion: The Renol Polychem IPO presents a classic high-growth, high-valuation scenario. The recent financials are undeniably impressive, but the sustainability of that growth is the critical unknown. The valuation leaves little room for error.
- Aggressive Investors: May consider a MODERATE SUBSCRIBE for listing gains (subject to GMP/sentiment near close) and medium-term potential, acknowledging the high risk.
- Conservative Investors: Should AVOID or take a very small position due to sustainability concerns, SME risks, and the full valuation. Wait for post-listing performance track record.
IPO Allotment and Refunds: The Complete Process
- How to Check Allotment Status (Expected: August 5, 2025):
- Visit the Registrar’s Website: https://www.skylinerta.com/ipo.php
- Look for the “Renol Polychem IPO Allotment Status” link.
- Enter your PAN Number, Application Number, or DP Client ID.
- Submit to view your allotment status.
- Alternatively, check the status through the NSE website under the IPO section or via your trading/banking platform.
- Refund Timelines:
- Initiation: Refunds for unsuccessful applicants will begin on August 6, 2025 (Wednesday).
- Receipt: Refunds typically reflect in your bank account within 3-4 working days after initiation (by August 9-10, 2025).
- Payment Methods:
- UPI: The primary method. Ensure your UPI mandate is confirmed by your bank by 5 PM on August 4, 2025. Blocked amounts for unsuccessful bids are automatically released.
- Actions After Allotment:
- Shares Credited: Allotted shares will be credited directly to your Demat account by August 6, 2025 (Wednesday).
- Listing Day (August 7, 2025): Decide your strategy:
- Sell for Listing Gains: If the stock lists at a significant premium (GMP positive) and you have concerns about long-term sustainability, selling on listing day can lock in quick profits. Common for SME IPOs.
- Hold for Medium/Long Term: If you believe in the company’s growth story and sustainability, holding allows participation in potential future upside. Monitor quarterly results closely.
- Partial Profit Booking: Sell a portion to recoup your initial investment and hold the rest for potential long-term gains. Balances risk and reward.
IPO RHP/DRHP: The Foundation Document
- What is it? The Red Herring Prospectus (RHP) is the final, legally binding offer document filed with the Registrar of Companies (RoC) and stock exchanges (NSE) after receiving SEBI (or SME exchange) observations. It contains all details except the final issue price and the exact number of securities offered (though price band is known). The Draft Red Herring Prospectus (DRHP) is the initial version filed with SEBI/the exchange for approval.
- Why is it Vital? The RHP is the single most important source of information for investors. It includes detailed financials, risk factors, management discussion, object of the issue, promoter background, legal information, and industry overview.
- Accessing Renol Polychem RHP/DHRP:
- Mandatory Reading: ALWAYS read the RHP thoroughly before investing. Pay special attention to the “Risk Factors” section.
Renol Polychem IPO Review: Pros, Cons & Verdict
Pros:
- Spectacular Financial Surge: Unprecedented revenue and profit growth in FY25.
- Outstanding Profitability: Industry-leading ROE and ROCE metrics.
- Niche Market Position: Focused player in the essential plastic additives space.
- Favourable Industry Tailwinds: Growth driven by increasing plastic consumption across applications.
- Promoter Skin in the Game: High post-IPO promoter holding (69.11%) aligns interests.
- Reasonable Pre-Growth P/E: Initial valuation based on pre-issue shares isn’t overly demanding.
Cons:
- Sustainability Question Mark: The extreme growth leap is the biggest red flag. Verifying its permanence is impossible pre-listing.
- Rich Post-IPO Valuation: P/E of 12.18x and P/BV of 4.32x fully price in the recent success, demanding flawless future execution.
- SME Market Volatility: Lower liquidity and higher price swings are inherent risks.
- Limited Large-Scale History: Operating effectively at the FY25 revenue level is a new challenge.
- Sector Cyclicality: Vulnerable to downturns in plastics, automotive, and construction.
- Small Company Risks: Execution challenges in expansion funded by IPO proceeds.
Final Verdict:
The Renol Polychem IPO is a high-risk, potentially high-reward proposition. The FY25 numbers are compelling, but they represent a dramatic shift from past performance. Investing requires a strong conviction in the sustainability of this new growth trajectory. Conservative investors should avoid or wait. Aggressive investors seeking SME opportunities could consider a moderate application, primarily targeting potential listing gains (driven by sentiment/GMP) and accepting the inherent risks for medium-term holding. Due Diligence (reading RHP) is non-negotiable. This is not a recommendation but an analysis; consult a SEBI-registered advisor.
Renol Polychem IPO FAQs (Frequently Asked Questions)
- Q: What is the Renol Polychem IPO?
- A: It’s an initial public offering where Renol Polychem Ltd. is issuing 24,54,000 new shares to raise approximately ₹25.77 Crores. The shares will list on the NSE SME platform.
- Q: When does the Renol Polychem IPO open and close?
- A: The IPO opens on July 31, 2025 (Thursday) and closes on August 4, 2025 (Monday).
- Q: What is the Renol Polychem IPO price band?
- A: The price band is ₹100 to ₹105 per share.
- Q: What is the minimum investment amount for retail investors?
- A: Retail investors must apply for a minimum of 2 lots (2,400 shares). This requires ₹240,000 (at ₹100) to ₹252,000 (at ₹105).
- Q: How can I apply for the Renol Polychem IPO?
- A: Apply via your bank’s ASBA (net banking) or through your stockbroker’s trading platform (like Zerodha, Groww, Upstox, ICICI Direct, etc.) using UPI. Ensure UPI mandate confirmation by 5 PM on August 4, 2025.
- Q: When is the Renol Polychem IPO allotment date?
- A: The tentative allotment date is August 5, 2025 (Tuesday).
- Q: When will Renol Polychem IPO shares be listed?
- A: The tentative listing date on NSE SME is August 7, 2025 (Thursday).
- Q: How can I check my Renol Polychem IPO allotment status?
- A: Check on the registrar’s website (Skyline Financial Services: https://www.skylinerta.com/ipo.php) using your PAN, Application Number, or DP ID after August 5, 2025.
- Q: What is the current GMP for Renol Polychem IPO?
- A: The Grey Market Premium (GMP) will become active closer to the subscription dates (July 31 – Aug 4, 2025). Check financial news portals or our updates then.
- Q: Should I subscribe to the Renol Polychem IPO?
- A: The decision depends on your risk tolerance. The company shows phenomenal recent growth (FY25) but questions about sustainability remain, and the post-IPO valuation is full. Aggressive investors might consider it for potential listing gains or medium-term hold, while conservative investors may avoid. Thoroughly read the RHP and assess your risk profile. Consider consulting a financial advisor.
Also Read: Cash Ur Drive Marketing IPO Live GMP Today 2025: Analysis, Financials, Price, Dates
Conclusion
The Renol Polychem IPO offers a glimpse into a company experiencing explosive growth within the vital plastic additives sector. While the FY25 financials are undeniably impressive, fueled by surging revenue and profits, the paramount question for investors is the sustainability of this trajectory. The IPO valuation reflects this recent success, demanding flawless future execution to justify the price.
Key takeaways include the company’s strong profitability metrics (ROE/ROCE), its niche market position, and promoter commitment. However, the risks – primarily the sustainability concern, the SME listing environment, and the full valuation – are substantial.
Investor Action: Monitor the Grey Market Premium (GMP) once the subscription opens for market sentiment clues. MOST CRITICALLY, download and meticulously read the Red Herring Prospectus (RHP), focusing intensely on the “Risk Factors” and “Management Discussion and Analysis” sections. This IPO suits aggressive investors comfortable with SME volatility and high risk-reward profiles, potentially for listing gains or a medium-term hold based on post-listing performance. Conservative investors should approach with caution or wait for more established track records. Stay tuned for live GMP updates as the subscription window nears.
