Rite Zone Chemcon IPO Detail
Rite Zone Chemcon IPO opens on October 31 and closes on November 2, 2022. According to the DRHP filed by the company with SEBI, they are planning to issue 11,95,200 shares of Rs 10 each, aggregate up to Rs 8.96 crore through this public issue.
Incorporated in 2015, Company is ISO 9001:2015 certified company and deal in range of construction chemicals and concrete products. They offer a complete construction solution by supplying a complete range of various chemical products related to civil construction, infrastructure, building, and structure, including pre-construction or post-construction, as well as all types of concrete required for construction and infrastructure developments. Construction chemicals are chemical compounds that are used in the construction industry. They are used to speed up the process or add more sustainability and strength to the structures. The addition of construction chemicals to various building materials during the construction work improves performance, workability, adds functionality, and protects the basic or customized elements of a structure.
The company’s range of products includes concrete additives, water proofing systems, concrete lubricators, engineering grouts, industrial flooring, concrete repairs, curing compounds and moulds release agents, surface treatment, tiling, and block products.
Objects of the Issue
The company proposes to utilise the Net Proceeds of the Fresh Issue towards funding the following objects:
- To part finance Working Capital Requirements of the Company
- General corporate purposes
- To meet Public Issue Expenses
Financial Highlights
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|
| Share Capital | 3,03,50,700 | 1,00,000 | 1,00,000 |
| Net worth | 5,07,26,420 | 66,64,386 | 57,89,461 |
| Revenue from operations | 4,93,33,473 | 3,79,74,489 | 5,74,77,801 |
| Profit After Tax | 28,35,844 | 8,74,925 | 12,16,202 |
| EPS (Basic and Diluted) In Rs | 1.49 | 0.11 | 2.61 |
| Net Assets Value (NAV) Per Equity Shares (In Rs) | 16.55 | 10.37 | 10.25 |
| Total Borrowing (As per Restated Balance sheet) | 1,06,23,831 | 3,29,30,185 | 2,58,11,851 |
Rite Zone Chemcon IPO – Details
According to the DRHP filed by the company with SEBI, they are planning to issue 11,95,200 shares of Rs 10 each, aggregate up to Rs 8.96 crore through this public issue.
| Issue Type | Fixed Price Issue IPO |
| IPO Price | Rs 75 per share |
| Face Value | Rs 10 per share |
| Market Lot | 1600 shares |
| Issue Size | 11,95,200 shares of Rs 10 (Aggregating up to Rs 8.96 crore) |
| Fresh Issue | 11,95,200 shares of Rs 10 (Aggregating up to Rs 8.96 crore) |
| NII (HNI) Shares Offered | 50% of the Net offer |
| Retail Shares Offered | 50% of the Net offer |
| Listing At | NSE SME |
| Promoters | Mr. Bhavesh Bhandari Mrs. Arti Bhandari |
Tentative Dates for Rite Zone Chemcon IPO
| IPO opens on | Oct 31, 2022 |
| IPO closes on | Nov2, 2022 |
| Basis of Allotment publication date | Nov 7, 2022 |
| Initiation of Refund | Nov 9, 2022 |
| Credit of shares to Demat Account | Nov 10, 2022 |
| IPO listing | Nov 11, 2022 |
Rite Zone Chemcon IPO – Lot Size
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | Rs 1,20,000 |
| Retail (Max) | 1 | 1600 | Rs 1,20,000 |
Rite Zone Chemcon Limited IPO – Promoter Holding
| Pre issue share holding | 58.39% |
| Post issue share holding | – |
Read more: Vital Chemtech IPO Detail
Rite Zone Chemcon Limited IPO – SWOT Analysis
STRENGHTH
- Experienced Management team having domain knowledge to scale up and expand into new opportunities
- Wide product portfolio addressing the needs of varied customers across the industry.
- Dedicated technical & functional team to provide solutions to company customers.
- Extensive Sales and distribution network
- Experience of handling large & complex projects
- Multi-year relationships with most customers.
- Improving operational efficiency
WEAKNESS
- The Company is dependent on few numbers of customers and suppliers for sales and purchase from top 10 customers and Top 4 suppliers. Loss of any of these large customer and supplier will significantly affect its revenues and profitability.
- Company rely on third parties for manufacturing of its products for performance of services carried out by Company.
OPPORTUNITY
- Global market is projected register a CAGR of over 5.5% during the forecast period (2021-2026).
- The Indian chemicals industry stood at US$ 178 billion in 2019 and is expected to reach US$ 304 billion by 2025 registering a CAGR of 9.3%. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 300 billion to India’s GDP by 2025.
THREAT
- New Competitor
- Technology
- Changes in government policies
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP IPO RHP |
| Company Contact Information | Row House 11, Beverly Park, Row House CHS Ltd Mira Road Thane- 401107 Phone: +91 22 6884 9680 Email: cs@ritezone.in Website: http://www.ritezone.in/ |
| IPO Registrar | SKYLINE FINANCIAL SERVICES PRIVATE LIMITED Address: D-153A, 1st Floor, Okhla Industrial Area PhaseI, New Delhi – 110020, India. Tel. Number: 011-40450193-197 Investors Grievance Id: grievances@skylinerta.com Website: www.skylinerta.com |
| IPO Lead Manager(s) | Expert Global Consultants Private Limited |
FAQ’s
The lot size of Rite Zone Chemcon IPO is 1600 shares.
November 7, 2022 is the IPO allotment date of Rite Zone Chemcon Limited.
