Phytochem Remedies Withdraws Rs 38 Cr SME IPO After 62% Subscription

Phytochem Remedies, a Jammu‑based packaging maker, pulled its planned Rs 38 cr SME IPO after the issue drew only 62% of the shares on offer.

What happened?

The three‑day bidding window closed with 797 applications for about 23.1 lakh shares, raising roughly Rs 22.6 cr – far short of the Rs 38.2 cr target.

Key subscription figures

• Total applications: 797
• Shares applied for: ~23.1 lakh
• Amount raised: Rs 22.63 cr
• Subscription level: 62% of the issue

Company snapshot

Phytochem Remedies makes corrugated boxes and boards for FMCG, food‑beverage, pharma, pesticide and automobile sectors. It runs two plants in Bari Brahmana, Jammu, and employs about 51 people.

Recent financial performance

• Revenue grew 12% YoY in FY25.
• Profit after tax rose to Rs 4.48 cr, nearly double the previous year.
• First half of FY26 showed a PAT of Rs 3.75 cr.

Why the IPO was withdrawn

The company said unfavourable market conditions and volatility hurt investor sentiment, leading the board to cancel the issue. The minimum retail investment was Rs 2.35 lac (2,400 shares), which may have limited participation.

What this means for investors

Investors looking at SME listings should note the cautious appetite in the current environment, especially after tighter regulations. The lack of a premium in the grey market suggested a flat debut was expected.

Use of proceeds (planned)

• Capital expenditure on new machinery and civil works.
• Partial repayment of existing borrowings.
• General corporate purposes.

Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.