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Biopol Chemicals IPO: A High-Growth Specialty Chemicals Play Hits the Market

Biopol Chemicals IPO: A High-Growth Specialty Chemicals Play Hits the Market

1. Who is Biopol Chemicals Limited?

Founded in 2023 but carrying forward the legacy of United Chemical Company (est. 2005), Biopol Chemicals is a research-driven manufacturer based in Ahmedabad, Gujarat, with key manufacturing operations in Agarpara, West Bengal.

Product Portfolio & Market Reach:

66 Specialty Products: Including 40 silicone-based variants, 15 biochemicals, 5 emulsifiers, and 6 polyelectrolytes.

Key Sectors: Their chemicals are critical for textile processing (softeners/emulsions), home care (cleaning fluids), and agriculture (adjuvants).

Strategic Exports: The company has a consistent export footprint in Bangladesh, a global textile hub, which accounts for approximately 12% of its revenue.

2. Key IPO Details & Timeline

The IPO is a Book Building Issue consisting entirely of a Fresh Issue of equity shares.

EventDate / Details
IPO Open DateFriday, February 6, 2026
IPO Close DateTuesday, February 10, 2026
Price Band₹102 to ₹108 per share
Lot Size1,200 Shares
Minimum Investment (Retail)₹2,59,200 (Min 2 Lots / 2,400 shares)
Allotment DateWednesday, February 11, 2026
Listing Date (Tentative)Friday, February 13, 2026
Listing ExchangeNSE SME (Emerge)

3. Financial Performance: Rapid Scaling

Biopol has shown exceptional momentum in its top and bottom lines, particularly after its consolidation:

Revenue Growth: Revenue jumped from ₹17.43 Cr (FY24) to ₹49.13 Cr (FY25). For the 9 months ending Dec 2025, they have already reported ₹48.97 Cr.

Profitability: Net Profit (PAT) rose from ₹2.96 Cr (FY24) to ₹4.33 Cr (FY25).

High Efficiency: The company boasts a ROE of 38.1% and a ROCE of 30.6% (FY25), indicating very strong returns on invested capital.

Valuation: At the upper price band, the post-issue P/E ratio is roughly 14.58x, which is relatively attractive compared to larger peers like Fineotex Chemical.

4. Objectives of the Issue

The capital raised (₹31.26 Cr) will be used for:

Acquisition of Industrial Land (₹12.26 Cr): To expand their manufacturing footprint and capacity.

Debt Repayment (₹11.10 Cr): To reduce interest burdens and move toward a leaner balance sheet.

General Corporate Purposes: For operational flexibility and growth.

5. Investment Analysis: Strengths vs. Risks

Strengths:

Diversified Portfolio: 66 specialized products reduce dependency on any single chemical formulation.

International Footprint: Proven track record in Bangladesh gives them a competitive edge in export margins.

Experienced Promoters: Led by Mr. Santanu Sarkar, who has over two decades of industry experience.

Risks:

Sector Concentration: Heavy reliance on the textile industry (~70% of use-cases) makes them vulnerable to textile market cycles.

Supplier Concentration: Dependence on a limited number of raw material suppliers could impact margins if supply chains are disrupted.

Geographic Risk: Significant revenue is concentrated in West Bengal, Gujarat, and Bangladesh.

6. Conclusion: A Growth Play with Fair Valuation

Biopol Chemicals enters the market with solid fundamentals and a clear roadmap for land acquisition. While the ticket size for retail investors is high (₹2.59 lakh), the company's high ROE and reasonable P/E ratio make it an interesting candidate for investors seeking exposure to the specialty chemicals boom.