Phytochem Remedies, a Jammu-based packaging company, is set to open its Initial Public Offering (IPO) for subscription on Thursday, aiming to raise Rs 38.22 crore. The company's shares are being offered at a fixed price of Rs 98 per share, with the grey market premium currently at zero, indicating muted expectations for listing gains.
About the IPO
The IPO is a fresh issue of 39 lakh shares and will close on December 22, with a tentative listing date of December 26 on the BSE SME platform. The minimum investment for retail investors is relatively high at Rs 2.35 lakh, as bids must be placed for at least 2,400 shares.
Company Overview
Phytochem Remedies is engaged in the manufacture of corrugated boxes and boards used across various sectors, including FMCG, food and beverages, pharmaceuticals, pesticides, and automobiles. The company operates two manufacturing units in Bari Brahmana, Jammu, and employs 51 people as of September 2025.
Financial Performance
The company has reported a sharp improvement in profitability over the past two years, with revenue rising 12% year-on-year in FY25, while profit after tax nearly doubled to Rs 4.48 crore. For the first half of FY26, the company posted a PAT of Rs 3.75 crore.
IPO Proceeds and Usage
The company plans to use the IPO proceeds primarily for capital expenditure on machinery and civil construction, along with partial repayment of borrowings and general corporate purposes.
Investor Sentiment
With the grey market offering no immediate listing cues, investor response during the subscription period is likely to determine near-term sentiment around the issue. Remember, this is perspective, not prediction. Do your own research before making any investment decisions.
Key highlights of the IPO include:
- Issue size: Rs 38.22 crore
- Issue price: Rs 98 per share
- Minimum investment: Rs 2.35 lakh
- Tentative listing date: December 26