Biopol Chemicals IPO Opens for Subscription with Moderate Initial Response
The initial public offering (IPO) of Biopol Chemicals commenced its public subscription phase on Friday, February 6, marking a significant milestone for the speciality chemicals manufacturer. This NSE SME IPO represents a fresh issue of 28,94,400 equity shares, aiming to raise approximately ₹32.26 crore. Notably, the offering contains no offer for sale (OFS) component, meaning all proceeds will directly benefit the company's growth initiatives.
Subscription Status and Grey Market Sentiment
By 12:10 pm on the opening day, the IPO had achieved an overall subscription rate of nearly 40%. The retail investor segment demonstrated stronger interest, being booked at 36%, while the portion reserved for non-institutional investors (NIIs) saw a more modest subscription of 4%. In a noteworthy development, grey market sources reported that the grey market premium (GMP) for Biopol Chemicals shares remained nil on Friday. This absence of premium suggests market expectations that the stock could list at par with its issue price when it debuts on the NSE SME platform.
Comprehensive IPO Details and Financial Objectives
The public issue will remain open for subscription until Tuesday, February 10, providing investors with a five-day window to participate. The company has established a price band of ₹102 to ₹108 per equity share, making the offering accessible to a broad range of investors. Retail participants can bid for a minimum and maximum of 2,400 shares, ensuring manageable investment sizes.
According to the Red Herring Prospectus (RHP), Biopol Chemicals intends to allocate the net proceeds from this IPO toward several strategic objectives. These include the acquisition of industrial land to support manufacturing expansion, the repayment or prepayment of certain existing borrowings to strengthen the balance sheet, and general corporate purposes that will facilitate operational enhancements.
Allocation Structure and Corporate Background
The allocation strategy for this IPO prioritizes institutional support, with non-institutional investors receiving the largest portion at 37.81% of the net issue, equivalent to 10,94,400 shares. Retail investors have been allocated 33.25% (9,62,400 shares), while qualified institutional buyers (QIBs) have access to 23.71% (6,86,400 shares) of the offering.
Biopol Chemicals operates within the dynamic speciality chemicals sector, engaging in trading, manufacturing, and distribution across four key categories: silicones, emulsifiers, biochemicals, and polyelectrolytes. The company's product portfolio comprises 66 distinct products, including 40 silicone-based offerings, 5 emulsifier-based products, 15 biochemical products, and 6 polyelectrolyte products.
Financial Performance and Timeline
The company's financial records reveal promising growth trajectories. For the fiscal year 2025, Biopol Chemicals reported a profit of ₹4.33 crore alongside operational revenue of ₹49.13 crore. More recently, for the period ending December 31, 2025, the company achieved a profit of ₹6 crore with revenue standing at ₹48.84 crore, indicating sustained operational strength.
The allotment process is scheduled for completion on Wednesday, February 11, with successful bidders expected to receive shares in their demat accounts by Thursday, February 12. Those who do not receive allocation should anticipate refunds on the same day. The IPO is proposed for listing on the NSE SME platform on Friday, February 13, potentially providing early investors with market liquidity.
Smart Horizon Capital Advisors Private Limited serves as the book-running lead manager for this offering, while Bigshare Services Private Limited has been appointed as the registrar, ensuring professional oversight of the issuance process.
