Phychem Technologies IPO
SMEPhychem Technologies is an SME engaged in the formulation, processing, and supply of specialty chemical products and industrial chemical solutions.
Verdict: Avoid
Est. GMP
+₹1 (+2%)
Price range
₹54
Lot size
—
Issue size
—
Allotment
03 Sept
Listing
07 Sept
Review
1. Grey market premium
★★★★★The grey market premium stands at a negligible 1.85%, indicating no listing gain margin of safety.
2. Company financials
★★★★★The business operates on an SME scale with limited pricing power and heavy working capital requirements.
3. Subscription status
★★★★★Subscription demand remained muted across categories throughout the issue period.
4. Anchor investors
★★★★★No anchor allocation was made for this SME issue.
Company financials
Amount ₹ in Crores
| Period ended | Revenue | Expense | PAT | Assets |
|---|---|---|---|---|
| 2024 | ₹47.59 | ₹45.22 | ₹1.69 | ₹17.83 |
| 2025 | ₹51.11 | ₹47.33 | ₹2.84 | ₹20.75 |
| 2026 | ₹57.48 | ₹51.94 | ₹4.09 | ₹25.32 |
Subscription
Anchor investors
| Anchor size | 4.11 Cr. |
| Shares offered | 7,62,000 Shares |
| Bidding date | August 28, 2026 |
| Lock-in ends (50%, 30 days) | Oct 3, 2026 |
| Lock-in ends (50%, 90 days) | Dec 2, 2026 |
Risks
- ValuationA negligible GMP of under 2% offers no buffer against standard SME liquidity risks.
- RegulatoryOperations are exposed to strict environmental compliance and hazardous materials handling norms.
- FinancialHigh working capital requirements strain operational cash flows in small-scale chemical operations.
- ConcentrationSubstantial dependency on a limited set of industrial clients creates revenue volatility.