Vital Chemtech Limited IPO

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i. Vital Chemtech is engaged in the business of manufacturing of Phosphorus Derivatives Producuts. The Company is manufacturer and supplier of Phosphorus base chemicals with highest quality practice and compliant with Highest Environmental, Health, and Safety (EHS) in chemical industry. The company has State of the Art Programmable Logic Controller (PLC) and Supervisory Control and Data Acquisition (SCADA) operated in integrated complex in PCPIR region of Dahej, Gujarat, India for manufacturing of phosphorus base chemicals.

ii. The manufacturing Facility of the company is having integrated manufacturing facility for manufacturing of phosphorus base chemical. The manufacturing Facility located in Dahej, Gujarat, has been certified with ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015 from Bureau Veritas to maintain highest quality, environmental and safety practices.

iii. The company’s plant is ZLD (Zero Liquid Discharge) to ensure minimum emissions and waste generation. The state of the art operation ensures organized uniflow state of the art manufacturing and supply sustainbility to its valued customers

iv. Presently the company manufactures Phosphorus Trichloride (PCl3), Phosphorus Oxychloride (POCl3), Phosphorus Pentachloride (PCl5),Phosphorus Pentoxide (P2O5), Poly Phosphoric Acid (PPA) and Phosphorus Pentasulfide (P2S5) for our customers across segments such as Lifesciences, Crop Care, Specialty Chemicals, Textile Auxillaries, Dyes, Pigments and Plastic Additives. Our company also does trading of its raw Material. The company is in the process of obtaining approval of Phosphorus Pentasulfide (P2S5) from its customers.

v. Following are the products manufactured by our comapany:

i. Phosphorus Trichloride (PCl3)

ii. Phosphorus Oxychloride (POCl3)

iii. Phosphorus Pentachloride (PCl5)

iv. Phosphorus Pentoxide (P2O5)

v. Poly Phosphoric Acid (PPA)

vi. Phosphorus Pentasulfide (P2S5)

vi. Competitive Strength:

  • Experienced Promoter and Management Team.
  • Prime Location of the Manufacturing Facility.
  • Long-standing relationships with a diversified customer base.
  • Focus on Quality, Environment, Heal

Objects of the Vital Chemtech Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. To Meet Working Capital Requirements 2. General Corporate Purpose 3. To meet Public Issue Expenses
DRHP of Vital Chemtech Limited IPO
RHP of Vital Chemtech Limited IPO

Vital Chemtech Limited IPO Details:

Open Date: Oct 31 2022
Close Date: Nov 03 2022
Total Shares: 6,400,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Lot Size: 1200 Shares
Issue Price: ₹ 95-101 Per Equity Share
Listing At: NSE Emerge

Promoters And Management:

i. Mr. Vipul Jatashanker Bhatt aged 50 years is Promoter-Chairman and Managing Director of the Company, He was Designated Partner of Vital Chemtech Limited Liability Partnership since February 12, 2015 after that he was appointed as an Executive Director on Incorporation/Conversion of Vital Chemtech Limited Liability Partnership to Vital Chemtech Limited w.e.f. November 25, 2021. Thereafter he was appointed as Managing Director for a period of five (5) years w.e.f. February 15, 2022 and he was appointed as Chairman w.e.f. June 28, 2022. He is Diploma in Chemical Engineering from Government Engineering College, Bharuch. He is having about 28 years of experience in the chemical manufacturing and trading industry. ii. Mr. Jay Vipul Bhatt aged 26 years is Whole Time Director of the Company. He was Designated Partner of Vital Chemtech Limited Liability Partnership since October 18, 2021 after that he was appointed as an Executive Director on Incorporation/Conversion of Vital Chemtech Limited Liability Partnership to Vital Chemtech Limited w.e.f. November 25, 2021.Thereafter he was appointed as Whole Time Director for a period of five (5) years w.e.f. February 15, 2022 liable to retire by rotation. He Holds Degree of Bachelor of Chemical Engineering from Gujarat Technological University. He is having more than four years of experience in the Business Development and Marketing. iii. Mrs. Sangeeta Vipul Bhatt aged 51 years is Promoter - Whole Time Director of the Company. She was Designated Partner of Vital Chemtech Limited Liability Partnership since February 12, 2015 after that she was appointed as an Executive Director on Incorporation/Conversion of Vital Chemtech Limited Liability Partnership to Vital Chemtech Limited w.e.f. November 25, 2021.Thereafter he was appointed as Whole Time Director for a period of five (5) years w.e.f. February 15, 2022 liable to retire by rotation. She holds degree of Bachelor of Commerce from Osmania University, Hyderabad. She is having more than five years of experience in the Administration of our Company

Financials of Vital Chemtech Limited IPO:

Particulars (in crores) Apr-21 to Nov-22 Mar-21 Mar-20
Revenue from operations 85 47 41
Cost of Materials Consumed 37 31 28
Change in Inventories -1 0.2 -0.2
Employee Benifit Expense 9 2 1
Other Expense 27 6 6
Operating Profit 13 7.8 6.2
OPM% 15.29% 16.60% 15.12%
Finance Cost 0.8 1 1
Depreciation 0.7 0.9 0.8
Other Income 0.4 0.2 0.4
Profit (Loss) before tax 11 4 2
Profit (Loss) for the period 7 2 1

Comparison With Peers:

Name of the Company CMP FV EPS P/E
Neogen Chemicals Limited 1,545 10 20.03 80

Recommendation on Vital Chemtech Limited IPO:

Review and Recommendation of Vital Chemtech SME IPO by IZ team is (4/10)

1. The Company is engaged in the business of manufacturing of Phosphorus Derivatives Products having manufacturing unit in Dahej Gujarat. 2. Currently company produces Phosphorus Trichloride (PCl3), Phosphorus Oxychloride (POCl3), Phosphorus Pentachloride (PCl5),Phosphorus Pentoxide (P2O5), Poly Phosphoric Acid (PPA) and Phosphorus Pentasulfide (P2S5) for the customer such as Lifesciences, Crop Care, Specialty Chemicals, Textile Auxillaries, Dyes, Pigments and Plastic Additives. 3. The revenue has increased from 41 Crores in FY20 to 143 Crores in FY22. 4. PAT has increased from 1 Crores in FY20 to 14 Crores in FY22. 

5. Asking P/E is 34x which looks on higher side. 

Lead Manager of Vital Chemtech Limited IPO:

  1. Beeline Broking Limited

Registrar of Vital Chemtech Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Vital Chemtech Limited B-406, Mondeal Heights, Opp. Karnavati Club, S. G. Highway, Ahmedabad-380015 Phone: +91 79 4600 5840 Email: info@vitalgroup.co.in Website: https://www.vitalgroup.co.in/

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