Phychem Technologies Limited IPO: issue size, price band, subscription, financials and listing outcome

Phychem Technologies Limited’s SME initial public offering (IPO) was a ₹14.58 crore issue priced in a band of ₹51 to ₹54 per share. The IPO was open from 31 August 2026 to 2 September 2026 and listed on 7 September 2026. The issue was entirely a fresh issue (no offer for sale, or OFS), which means IPO proceeds were intended to go to the company; there were no selling shareholders receiving OFS proceeds. Based on the supplied details, the IPO was subscribed 1.97 times overall and the shares listed at ₹56 versus the upper end of the price band at ₹54.

What Phychem Technologies does

Phychem Technologies Limited manufactures rotational molding (roto moulding) polymer compounds. Its core output is customised polyethylene-based powders and granules, primarily linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE) grades with specialty additives tailored to end-use needs. These compounds are used by rotational moulders to produce hollow plastic products such as storage tanks, sanitation units, furniture and industrial containers.

Beyond compound manufacturing, the company also undertakes select custom moulding of tanks. It provides job-work services including rotolining and toll pulverising, which are adjacent services in the same processing ecosystem. In addition, it earns ancillary revenue by distributing imported chemicals, compounds and equipment used in the rotational moulding industry. The company has described its sales footprint as spanning India and including exports to multiple countries.

This mix places the issuer within a niche materials-and-processing segment where demand is linked to downstream moulders and product categories that require hollow plastic parts and containers.

Issue structure and how the company proposed to use the proceeds

The IPO had no OFS component, making it a capital-raising transaction for the business rather than a shareholder exit. The company’s stated IPO rationale is linked to its next phase of growth in rotational moulding compounds and related services.

As per the disclosed objects of the issue, the company proposed to use fresh issue proceeds (after issue expenses, to the extent payable by the company) towards:

Repayment (in full or in part) of certain outstanding borrowings; capital expenditure for procurement of plant and machinery; funding working capital requirements; and general corporate purposes.

Within this plan, the company has explicitly linked the capital expenditure to additional machinery at its Nashik facility, including a rotational moulding machine, a pulverising machine and an extruder. The stated intent of these additions includes expanding capacity, reducing changeover downtime between compound batches, and enabling manufacture or commercialisation of new products such as nylon-based compounds. The proposed allocation in the supplied details indicates about ₹5.15 crore for plant and machinery, about ₹2.50 crore for repayment of borrowings, and about ₹3.00 crore for working capital, with the balance for general corporate purposes not specified as a fixed amount.

Timeline, subscription mix and listing outcome

The IPO opened on 31 August 2026 and closed on 2 September 2026, with allotment dated 3 September 2026 and listing on 7 September 2026. With a lot size of 2,000 shares, the issue targeted SME-market participation under the applicable lot-based framework.

On demand, the overall subscription rate was 1.97 times. In category terms, Qualified Institutional Buyers (QIBs) subscribed 3.53 times, Non-Institutional Investors (NIIs) subscribed 1.30 times, and Retail Individual Investors subscribed 1.38 times, as per the supplied subscription snapshot.

On listing, the shares debuted at ₹56. Relative to the upper band price of ₹54, this corresponds to the provided listing gain of 3.70%.

Milestones and the operating footprint behind the IPO narrative

Phychem Technologies was incorporated in 2013 as Phychem Technologies Private Limited. In 2021, it received ISO 9001:2015 accreditation for the manufacture of plastic granules and powders. In 2023, it was awarded One Star Export House status. In 2025, it converted into a public limited company and was renamed Phychem Technologies Limited. The company has also disclosed that it crossed revenue of ₹50 crores in 2025.

The company’s manufacturing concentration is closely tied to its disclosed expansion thesis because the proposed machinery additions are planned at the Nashik facility. For investors and market observers, a single primary facility can make execution tracking straightforward, since expansion, maintenance, and operating continuity are tied to one location and one set of commissioning timelines. At the same time, this structure also concentrates operational continuity risk in one facility, which can become relevant when assessing delivery schedules, uptime, and the practical impact of planned equipment additions.

Financial trajectory and operating metrics reported

The company reported increases in total revenue, profit after tax (PAT) and total assets across the disclosed periods from FY2024 to FY2026, along with a higher PAT margin across those financial years. In rounded terms, total revenue moved from ₹475.88 crore in FY2024 to ₹574.81 crore in FY2026. PAT increased from ₹16.94 crore in FY2024 to ₹40.89 crore in FY2026. Total assets rose from ₹178.26 crore in FY2024 to ₹253.21 crore in FY2026. The financial table summarises the reported figures and the PAT margin trend across these years.

Alongside the financial-year trend, the issuer has disclosed key performance indicators (KPIs) commonly referenced for IPO valuation context and capital efficiency comparisons. These include earnings per share (EPS) of ₹5.42, return on equity (ROE) of 34.82%, return on capital employed (ROCE) of 32.73%, and return on net worth (RoNW) of 29.66%. The reported EBITDA margin is 10.78% (EBITDA stands for earnings before interest, tax, depreciation and amortisation). The company has also reported a debt-to-equity ratio of 0.43.

For valuation reference at the offer price, the supplied KPI set includes a pre-IPO price-to-earnings (P/E) multiple of 9.96 times at the issue price assumptions used in the dataset. The price-to-book value is shown as 0 in the supplied details and is presented here as a reported field.

Grey market premium (GMP), key risks, and what to monitor

Grey market premium (GMP) is an unofficial indicator that can change and is not an exchange-traded measure. The supplied observations show GMP of ₹3 (referenced to an issue price of ₹54) on 29 August 2026 and 30 August 2026, followed by GMP of ₹1 from 31 August 2026 through 7 September 2026.

From a risk framing perspective, the supplied context highlights three recurring themes relevant to a niche compound manufacturer and services provider.

First, manufacturing concentration: production is concentrated in one Nashik facility, so a breakdown, accident, or labour disruption can directly affect deliveries, revenue, and repair-related costs.

Second, customer concentration and contracting: the top customers account for a large share of sales and customer relationships are described as lacking long-term contracts, which can make volumes and cash flows sensitive to cancellations or pricing pressure.

Third, raw materials and supplier concentration: raw materials are the bulk of costs and sourcing is concentrated, which can make margins sensitive to supplier disruption or raw material price spikes if customers resist price changes.

Monitoring points that follow from the stated IPO plan and the disclosed risk framing include:

Progress on procurement, installation, and commissioning of the planned machinery at Nashik, including whether the company moves towards the stated aims around changeover downtime and new product capability.

Changes in the share of revenue contributed by top customers, given the disclosed concentration and contract structure.

Trends in raw material sourcing concentration and continuity of procurement, considering the stated reliance on concentrated sourcing.

Movement in borrowings and working-capital position relative to the stated proposed use of IPO proceeds, since the issue includes both repayment and working capital objectives.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.