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Shlokka Dyes Ltd.

Shlokka Dyes Ltd.

SHLOKKASME

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Overview

Shlokka Dyes Limited is a manufacturer of Synthetic Organic Dyes, primarily 'Reactive Dyes', for industries like textiles, leather, paper, and paints. The company operates an ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified manufacturing facility in Gujarat with an installed capacity of 9,000 MT per annum. It offers a diverse portfolio of dyes including Direct, Basic, Vat, Digital Printing, and Paper Dyes in various colors and shades.

Opening Date

Sep 30, 2025

Closing Date

Oct 06, 2025

Listing Date

Oct 09, 2025

IPO Type

SME

IPO Status

Closed

Issue Size

63.5 Cr

Fresh Issue

63.5 Cr

Offer for Sale

Price Band

₹95 - ₹100

Lot Size

1200

IPO Timeline

Sep 30, 2025
Open Date
Oct 06, 2025
Close Date
Oct 07, 2025
Allotment Date
Oct 08, 2025
Initiation of Refunds
Oct 09, 2025
Listing Date

Financials

Revenue

Profit After Tax (PAT)

IPO Objective

Our Company proposes to utilize the Net Proceeds from the issue towards the following objects:

  • Funding capital expenditure of ₹6.13 Crores for purchasing new machinery, including an additional spray dryer and reactor vessels, to increase production capacity by approximately 60% to 70%.

  • Repayment or prepayment of existing borrowings amounting to ₹11.50 Crores to strengthen the financial position, improve the debt-equity ratio, and enhance the balance sheet.

  • Meeting working capital requirements of ₹28.00 Crores to support the company's expanding business operations and growth trajectory.

  • Funding general corporate purposes, including strategic initiatives, brand building, and other operational needs to support business growth.

Key Performance Indicator

P/E Ratio

10.49

EPS

9.53

ROE

36.82%

ROCE

36.14%

RONW

36.73%

Debt to Equity Ratio

1.02

PAT Margin

9.68%

EBITDA Margin

18.05%

P/B

5.54

SWOT Analysis

Strengths

  • Holds ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, ensuring high-quality products and processes.

  • Led by an experienced promoter, Mr. Vaibhav Shah, with over 25 years of expertise in the Dyes and Auxiliaries industry.

  • Operates an integrated production process with an in-house laboratory for stringent quality control at every stage of manufacturing.

  • Manufacturing facility is located in a prime industrial zone (GIDC, Saykha), providing logistical and infrastructural advantages.

Weaknesses

  • High customer concentration, with top 10 customers accounting for over 99% of revenue in FY2025.

  • Significant dependence on a single product category, with 'Reactive Black' dyes contributing over 56% of revenue.

  • Capacity utilization was only 50.05% of the installed capacity in the financial year 2024-25.

  • Proposed deployment of IPO proceeds is based on management estimates and has not been independently appraised by any external agency.

Opportunities

  • Growing demand in the Indian chemical industry, which is expected to reach US$ 1 trillion by 2040.

  • Global 'China+1' strategy provides an opportunity for Indian chemical manufacturers to increase their global market share.

  • Expansion into new geographical markets such as Southeast Asia, Africa, and Latin America to tap into growing industrial demand.

  • Increasing global demand for eco-friendly and sustainable dyes presents a significant new product development opportunity.

Threats

  • Volatility in raw material prices, which are dependent on crude oil, can adversely impact the cost of production.

  • Exposure to global economic slowdowns, political instability, and changes in foreign exchange rates.

  • Intense competition from both established players and new entrants in the domestic and international dye manufacturing industry.

  • Changes in government regulations, environmental laws, and fiscal policies could adversely affect operations and growth prospects.

Subscription Rate

CategoryShares Bid ForShares OfferedTimes Subscribed
Qualified Institutional Buyers9.05 L6.04 L1.50x
Non-Institutional Investors26.02 L16.26 L1.60x
Retail Individual Investors45.56 L37.97 L1.20x
Employee0.000.001.00x
Others0.000.001.00x
Total88.91 L63.50 L1.40x