Biopol Chemicals
- Biopol Chemicals is coming out with an initial public offering (IPO) of 28,94,400 shares in a price band of Rs 102-108 per equity share.
- The issue will open on February 06, 2026 and will close on February 10, 2026.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 10.2 times of its face value on the lower side and 10.8 times on the higher side.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance Officer for the issue is Deepti Nama.
Profile of the company
The company is engaged in the business of trading, manufacturing and distribution of specialty chemicals under the categories of silicones, emulsifiers, biochemicals and polyelectrolytes. Its product portfolio consists of 66 products which comprises of 40 silicone-based products, 5 emulsifier-based products, 15 biochemical products and 6 polyelectrolyte products. These products are used in applications across various industry segments, including softeners, emulsions and hardeners for textiles; silicone fluids and cleaning chemicals for home care; silicone adjuvants and surfactants in agriculture; and release agents in industrial chemicals.
In addition, the company also provides technical consultancy services to customers. These services are offered either in connection with the sale of its products or in certain cases, separately at the request of customers for specific requirements. Its consultancy services includes support on the application of specialty chemicals in textile processing, guidance relating to the manufacture of dyes and advice on the use of specialty chemicals in industrial formulations, enabling customers in achieving specific application requirements.
The company operates on a business-to-business (B2B) model, catering to institutional clients rather than retail end-users. It conducts its business through a combination of direct sales and a network of distributors, enabling it to serve customers across both domestic and international markets. In the domestic market, its sales are spread across several regions, including West Bengal, Gujarat, Maharashtra, Tamil Nadu and Karnataka, with a significant portion of revenue derived from West Bengal and Gujarat. While its exports are currently focused on Bangladesh, which is a global hub for textiles and apparel manufacturing. It has four establishments located in Gujarat and West Bengal, comprising its manufacturing unit, corporate office and warehouse in West Bengal; and its registered office in Gujarat.
Proceed is being used for:
- Acquisition of industrial land
- Repayment or prepayment, in full or in part, of borrowings availed by the company from banks, financial institutions and non-banking financial companies
- General corporate purposes
Industry Overview
Indian Chemicals Market Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India's chemical sector, which was estimated to be worth around Rs 21,50,750 crore ($250 billion) in 2024, is anticipated to grow to $300 billion by 2025 and Rs 86,03,000 ($1 trillion) by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty. Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world's production of dyestuffs and dye intermediates. Indian colourants industry has emerged as a key player with a global market share of around 15%. The country’s chemicals industry is de-licensed, except for a few hazardous chemicals.
India has traditionally been a world leader in generics and biosimilars and a major Indian vaccine manufacturer, contributing more than 50% of the global vaccine supply. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at the global level (excluding pharmaceuticals). From (April-February) FY25, India's dye exports (Dyes and Dye Intermediates) totalled Rs 20,088 crore ($2.3 billion). India’s specialty chemicals companies are expanding their capacities to cater to rising demand from domestic and overseas. With global companies seeking to de-risk their supply chains, which are dependent on China, the chemical sector in India has the opportunity for a significant growth. The Dahej PCPIR project in Bharuch, comprising 180 existing and 650 under construction industrial units has attracted an investment of Rs 1 lakh crore (around $12 billion) and is expected to generate 32,000 jobs. The Indian chemical industry is currently valued at $220 billion and is expected to reach $300 billion by 2030 and $1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.
A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector. The government plans to implement production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters. 100% FDI is allowed in the chemical sector under automatic route with exception to few hazardous chemicals. In April 2023, Cabinet approved the National Medical Devices Policy, 2023. Industrial licensing is approved in most sectors, except for few hazardous chemicals. The Indian Government supports the industry in research & development, reduced the basic customs duty on several products and offers support through the ‘Make in India’ campaign. Four Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) were set up as the investment regions for petroleum, chemicals and petrochemicals along with associated services. The Government of India is considering launching a production-linked incentive (PLI) scheme in the chemical sector to boost domestic manufacturing and exports.
Pros and strengths
Efficient manufacturing unit: It operates a manufacturing facility located at 74, Nilgunj Road, P.O. Agarpara, Panihati, P.S. Khardah, North 24 Parganas, Kolkata, West Bengal. The facility comprises a two storied unit, with the ground floor measuring around 5,000 sq. ft. and the first floor measuring around 900 sq. ft. The manufacturing unit has an installed capacity of 18,25,000 litres per annum and is equipped with reactors, mixers, homogenizers, blenders, and other process equipment, enabling the production of its range of specialty chemical products. The first floor houses the quality control laboratory for sample testing and designated areas for workers and support functions. The unit is operated and managed by a team consisting of a supervisor and 8 employees across various functions including production, quality control, maintenance, procurement, packaging and dispatch. This functional structure facilitates effective production management while ensuring compliance with quality standards and operational efficiency.
Quality certification and quality assurance: Its manufacturing facility has been accredited with ISO 9001:2015 - Quality Management Systems, ISO 14001:2015 - Environmental Management Systems and ISO 45001:2018 - Occupational Health and Safety Management Systems for manufacturing and exporting specialty chemicals across categories such as silicones and downstream chemicals, surfactants, polyelectrolytes, home care chemicals and bio-chemicals. These certifications evidence its commitments to adhering to stringent quality standards, given the nature of its operations where consistency is of paramount importance and tolerance for variation in product specifications is minimal. It has 42 products (20 silicone-based products, 1 emulsifier-based product, all 15 biochemical products and all 6 polyelectrolyte products) under ZDHC Level 3 certification, which represents the highest level of product certification in its industry. These measures collectively ensure that its products meet industry standards and applicable regulatory requirements.
Export operations in Bangladesh: The company has maintained a consistent export presence in Bangladesh. Revenue from exports to Bangladesh was Rs 591.63 lakh for the period ended on December 31, 2025, Rs 369.08 lakh in FY25, Rs 166.79 lakh in FY24, and Rs 253.31 lakh in FY23, representing 12.11%, 7.51%, 6.55%, and 13.11%, respectively, of its total revenue from operations during the relevant periods. In addition to regular exports, it actively engages with the Bangladesh market through participation in industry exhibitions. For instance, its participation in the Textile Series of Exhibitions 2025 in Bangladesh enabled it to showcase its specialty chemical products, interact directly with potential customers, obtain industry feedback and generate new business leads. Such presence and engagement highlight the acceptance of its products in international markets, while also strengthening its overall visibility and competitiveness.
Risks and concerns
Business dependence on silicone-based chemicals: A significant portion of its product portfolio is dependents on silicone-based products, which form the core of its business operations. As on the date of this Red Herring Prospectus, its portfolio consists of 66 products, of which 40 are silicone based, 5 are emulsifier-based, 15 are biochemical, and 6 are polyelectrolyte products. Its silicone-based products are used across a variety of industries, including agriculture, textiles, and other specialty chemical applications. Any reduction in demand for silicone-based chemicals, whether due to regulatory changes, customer preference for alternative solutions, technological advancements, or environmental considerations, could materially and adversely impact its business. There is also a risk of obsolescence if competing products or substitutes with superior performance or cost advantages gain wider market acceptance. In such circumstances, its revenues and margins may decline if it is unable to adjust pricing, introduce new products, or develop new applications for its existing products.
Risks associated with operations at its manufacturing unit in West Bengal: It operates a manufacturing unit at 74, Nilgunj Road, P.O. Agarpara, Panihati, P.S. Khardah, North 24 Parganas, Kolkata, West Bengal. The unit has an installed capacity of 18,25,000 litres per annum and is equipped with reactors, mixers, homogenizers, blenders, and other process equipment, enabling the manufacture of its range of specialty chemical products. Its manufacturing unit is integral to its business operations. Its business performance depends on its ability to effectively manage this manufacturing facility, which is subject to various operational and external risks, including breakdown or failure of equipment, power or water supply interruptions, inefficiencies in production processes, equipment obsolescence, industrial accidents, natural disasters, and compliance with directives from relevant government authorities. Although it has undertaken routine repairs and maintenance during the period ended on December 31, 2025 and for the financial years ended March 31, 2025, 2024, and 2023, it cannot assure that a major breakdown or operational disruption will not occur in the future, which could materially affect its business operations and financial position. Any local social unrest, natural disaster, or disruption of utilities and services in the surrounding areas could adversely impact the operation of its manufacturing unit.
Exposure to raw material supply disruptions: The primary raw materials used in its manufacturing process are silicone fluids, silicone oil, plasticizer, solvents, surfactants, binder, emulsifiers and other chemical intermediaries and a substantial portion of its purchases is concentrated among a limited suppliers. A significant reliance on a limited number of suppliers increases its exposure to risks including supply interruptions, insolvency, changes in pricing, logistical challenges, regulatory or trade restrictions, and the inability to establish alternative supply arrangements in a timely and cost-effective manner. Any such disruption could adversely impact its production schedules, operational efficiency, costs and margins. The company has done 96.56%, 94.69%, 95.27% and 98.55% of its purchase from top 10 suppliers during the period ended December 31, 2025, FY25, FY24, and FY23 respectively.
Outlook
Biopol Chemicals is engaged in the business of trading, manufacturing and distribution of specialty chemicals under the categories of silicones, emulsifiers, biochemicals and polyelectrolytes. Its product portfolio consists of 66 products which comprises of 40 silicone-based products, 5 emulsifier-based products, 15 biochemical products and 6 polyelectrolyte products. These products are used in applications across various industry segments, including softeners, emulsions and hardeners for textiles; silicone fluids and cleaning chemicals for home care; silicone adjuvants and surfactants in agriculture; and release agents in industrial chemicals. On the concern side, its revenue is derived through a combination of direct sales and distributor-driven sales, and any disruption or inefficiency in either channel may materially and adversely affect its business, financial condition, results of operations and cash flows. Additionally, it does not have long-term agreements with certain distributors, which exposes it to the risk of losing them or facing unfavourable commercial terms. Moreover, its expansion plans, including the acquisition of industrial land in Gujarat, may expose it to operational, regulatory, and execution risks, and any delay or inability to complete the project as envisaged could adversely affect its business, results of operations, and financial condition.
The company is coming out with a maiden IPO of 28,94,400 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 102-108 per equity share. The aggregate size of the offer is around Rs 29.52 crore to Rs 31.25 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 4,912.84 lakh whereas in FY24 it was Rs 2,546.97 lakh representing an increase of 92.89%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 433.01 lakh and for the year ended March 31, 2024 it was Rs 296.23 lakh representing an increase of 46.17%.
The company intends to continue to focus on being a cost-efficient manufacturer and to deepen its penetration in its regional markets as well as in its export market of Bangladesh, thereby capturing a larger share of the markets in which it operates. It seeks to strengthen relationships with its repeated customers by providing a wider array of products and by enhancing production capacities to meet their requirements. Further, it has in the past participated in various industry exhibitions and intends to continue doing so in the future. Such participation enables it to showcase its product portfolio, demonstrate product applications and interact directly with potential and existing customers. Participation in trade fairs and exhibitions provides it with an opportunity to enhance its visibility, understand emerging industry trends, obtain feedback from stakeholders and identify prospective business opportunities.
