Ashish Kacholia invested in this SME IPO that has 42% GMP. Check all details

Ahmedabad-based excipient maker Patel Chem Specialities will launch its Rs 58.80 crore IPO today at a price band of Rs 82–84 per share. The offer is entirely a fresh issue of 70 lakh equity shares and will close for subscription on July 29. The company will list on the BSE SME platform, with a tentative listing date of August 1.

The IPO has drawn early attention after ace investor Ashish Kacholia, via Bengal Finance and Investment, was allotted 5.97 lakh shares as part of the anchor book at Rs 84 per share -- accounting for nearly one-third of the anchor portion.

Other notable investors include Meru Investment Fund, Zeal Global Opportunities Fund, and Ventura Fund I. In total, Rs 16.69 crore was raised from anchor investors.

Price band and GMP

The issue is priced at Rs 82–84 per share with a lot size of 1,600 shares. The grey market premium (GMP) is hovering at around 42% over the issue price, indicating strong interest ahead of listing.

Company overview

Patel Chem is a manufacturer of pharmaceutical excipients and specialty chemicals like sodium carboxymethyl cellulose and pregelatinized starch.

It operates from two plants in Gujarat and exports to over five continents. For FY25, it posted a 28% revenue growth to Rs 105.5 crore, while PAT jumped 38% to Rs 10.57 crore.

The proceeds from the IPO will be used for funding capital expenditure requirement of the company and other general corporate purposes.