Aureate Tradde
- Aureate Tradde is coming out with an initial public offering (IPO) of 38,98,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 70 per equity share.
- The issue will open on May 29, 2026 and will close on June 2, 2026.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 7.00 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Corporate Makers Capital.
- Compliance Officer for the issue is Sakshi Sareen.
Profile of the company
The company is engaged in the trading, distribution, and supply of industrial and technological materials across three key business verticals, including polymers and petrochemicals; lithium-ion and sodium-ion cells; and electric vehicle chargers. The company’s business operates on ‘Inventory-based model’, which means it purchases and maintain stock in advance, enabling to efficiently serve a wide array of customers, including small, medium, and large enterprises. By offering a diverse range of products, it caters to wide range of customer base and increase its ability to meet the varied needs of the industries it serves.
Its operational model relies primarily on rented warehouse facilities, its inventory management strategy is built on strong partnership and stringent reconciliation protocols. The physical control and management of all polymer and cell inventory are the direct responsibility of the Warehouse Company operating the rented facility. This includes material receipt, storage, handling, picking and dispatch. It relies on the Warehouse company's systems to ensure inventory updates are regularly provided and maintained. Its product portfolio comprises essential materials for key industries such as polymers and petro chemicals, electric mobility. These materials are vital for the production or manufacturing of plastic goods including PVC flex and PVC pipes, electric vehicle (EV) components, and E-mobility infrastructure
At present, it is primarily involved in domestic B2B market for trading and distribution of polymer, petrochemicals, Lithium-ion cells and Sodium-ion cells. Additionally, it also operates in B2B and B2C segment for trading and distribution of Electric Vehicle Chargers. Through its strong relationships with suppliers and customers, it has built a reliable and efficient customer base. Its business is based on prudent inventory management, disciplined financial control, strict Quality Assurance Standards and a deep understanding of its customers' needs.
Proceed is being used for:
- Funding working capital requirements of the company
- Repayment/pre-payment, in full or in part, of certain borrowings availed by the company
- Meeting out the general corporate purposes
Industry overview
Petrochemicals are a vast and essential group of chemicals derived from petroleum (crude oil) and natural gas. These ‘fossil fuels’ are primarily composed of hydrocarbons, molecules containing just hydrogen and carbon atoms. Through various refining and processing techniques, these hydrocarbons are transformed into a diverse range of petrochemical products that underpin countless aspects of human life. Indian chemical sector continues to grow at a rate of 1.2-1.5 times the GDP. India's chemical and petrochemical industry is currently valued at around $178 billion and is expected to reach $300 billion by 20253. The Ministry of Petroleum estimates that demand for petrochemicals will triple by 2040, reaching a value of $1 trillion. India ranks as the sixth largest player in the global petrochemical market.
India is a net importer of polyethylene with value of annual imports touching Rs 374 billion in FY 2024 against an annual export value of around Rs 43 billion in the same year. Strong imports of polyethylene are on account of a combination of insufficient domestic production as well as competitive cost of imported products as against domestic supply. India's import trends for polyethylene highlight varying patterns across categories, driven by domestic demand and application-specific requirements. Polyethylene with a specific gravity of less than 0.94 saw fluctuations, declining from Rs 28 billion in FY 2020 to Rs 21 billion in FY 2021, rebounding to Rs 33 billion in FY 2023, and then moderating to Rs 23 billion during April–September FY 2025, possibly due to increasing domestic supply or reduced demand.
While the historical performance of Indian chemical industry has been exemplary, the future holds even better growth opportunities. Domestic chemical consumption is rising steadily, and the country is expected to account for more than 20% of the incremental global consumption of chemicals that would happen globally in near future. The steady growth in industrial production is a key demand enabler. In addition, India is also positioning itself as a global chemical manufacturing hub, to meet the growing global demand. The evolving geopolitical scenario (the impact of events like Covid-19 pandemic and Russia - Ukraine conflict on global supply chain) has raised the question to relook the existing manufacturing landscape. Developed economies are looking at options beyond China to source products.
Pros and strengths
Strategic location of warehouses and depots: The company is primarily involved in domestic B2B market for trading and distribution of polymer, petrochemicals, Lithium-ion cells and Sodium-ion cells. Additionally, it also operates in B2B & B2C segment for trading and distribution of EV Vehicle Chargers. These products are imported through Indian ports including Mundra Port, Nhava Sheva Port and ICD Dadri Port and subsequently it stores the same at its warehouses and depots and thereafter, sell them to manufacturers of finished plastic products, Companies engaged in EV sector and directly to its customers. Currently, the Company operates through 3 warehouses, primarily located at Maharashtra, Gujarat and New Delhi with well-established connectivity with road, rail and air transport networks, which reduces transportation cost, avoid spillages and facilitates distribution of its products to the high consumption regions.
Stable financial performance: The company has demonstrated stable financial performance over the years with growth in terms of revenues and profitability. Over the last three financial years, it has focused its attention towards high customer retention, cost efficient procurement, and strategic expansion into new product segments such as lithium-ion and sodium-ion cells, and EV charging solutions, which has resulted in an increase in its revenue from operations and profits. Its revenue from operations has grown from Rs 20,900.48 lakh in Fiscal 2023 to Rs 17,074.81 lakh in Fiscal 2024 and Rs 17,440.60 lakh in Fiscal 2025. The revenue from operations for the nine months period ended December 31, 2025 was Rs 10,183.01 lakh. Its profit after tax has marginally increased from Rs 112.86 lakh in the Fiscal 2023 to Rs 257.42 lakh in Fiscal 2025.
Diversified industry presence: The company operates across multiple high-growth industries, such as polymer, petrochemicals, Lithium-ion cells and Sodium-ion cells and EV Vehicle Chargers. Its polymer and petrochemical products cater to diverse sectors such as construction, packaging, automotive and agriculture, while its energy storage and EV charging solutions serve the rapidly expanding electric mobility market. This diversified industry presence reduces its dependency on any single sector, enhances business stability, and allows to capitalize on emerging opportunities across multiple value chains.
Risks and concerns
Majority of revenue is generated from Gujarat and Maharashtra markets: The company derives its revenue from the domestic market and substantial portion of revenue from Gujarat and Maharashtra. For the nine months ended December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, the company derived a significant portion of its revenue from operations from the states of Gujarat and Maharashtra. Gujarat contributed 58.43%, 40.07%, 43.15%, and 22.88% of revenue from operations, respectively, while Maharashtra contributed 40.94%, 54.65%, 51.50%, and 73.08%, respectively. Any adverse developments affecting its operations in Gujarat and Maharashtra could have an adverse impact on its revenue and results of operations.
Significant contribution from Polymers and Petrochemicals segment may expose the company to concentration risks: Its product Polymers and Petrochemicals contribute significantly to its revenues from operation. For the nine months ended December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, the Polymers and Petrochemicals segment contributed 94.10%, 81.41%, 82.97%, and 100.00% of total revenue, respectively. Any adverse development in this product such as decline in quality, unavailability of raw material, volatility in pricing, change in demand and competition may adversely affect its ability to retain customers. It cannot assure that it will be able to generate the same quantum of revenues, or any revenues at all from this product and loss of revenues from this product may adversely affect its cash flows, revenues and profitability.
Dependence on top suppliers: The company is dependent on suppliers for purchase of polymers, Lithium-ion and Sodium-ion Cells and Electric Vehicle Chargers. The prices and supply of these products depend on factors beyond its control, including any delays, shortages, risk of price fluctuation as suppliers may unilaterally decide to change the prices of its products which could impact its cost structure, forex fluctuations, and profit margins, limited negotiation power, general economic conditions, competition, transportation costs and duties etc. For the nine months ended December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, the company’s top five suppliers accounted for 92.44%, 62.75%, 63.66%, and 52.65% of the total cost of material purchases, respectively. Any increase in the cost of, or a shortfall in the availability or quality of such products could have an adverse effect on its business, financial condition and results of operations.
Outlook
Aureate Tradde is into a business of trading of polymers, focusing on imports from foreign markets, domestic purchases, and subsequently trading these products in the Indian market. The company is engaged in trading, distribution, and supply of industrial and technological materials across three key business verticals: (i) Polymers and Petrochemicals; (ii) Lithium-ion and Sodium-ion Cells, and; (iii) Electric Vehicle Chargers. On the concern side, the polymer trading business operates on a high-volume, low-margin model, where price competitiveness is crucial for retaining key customers. Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase its prices. the company’s customers operate in various industry segments/verticals and fluctuations in the performance of the industries in which the customers operate may result in a loss of customers, a decrease in the volume of work undertake or the price at which the company offer its products.
The company is coming out with an IPO of 38,98,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 70 per equity share to mobilize Rs 27.29 crore. On total income increased from Rs 17,219.13 lakh in year ended March 31, 2024 to Rs 17,661.98 lakh in year ended March 31, 2025 with a resultant increase of 2.57% in year ended March 31, 2025 mainly due to increase in normal course of business. Net Profit after tax increased from Rs 144.72 lakh in year ended March 31, 2024 to Rs 257.42 lakh in year ended March 31, 2025 with a resultant increase of 77.88% in year ended March 31, 2025.
Meanwhile, the company’s strategy for expanding its geographic presence and driving growth in domestic markets revolves around strengthening its existing operations and entering new regions. It is focusing on leveraging its understanding of the EV sector products, it identifies emerging market opportunities and aim to increase its market share by enhancing its product offerings and expanding its distribution footprint across India. This includes optimizing supply chains and meeting the growing demand for EV sectors products across India. Its growth depends on its ability of maintaining strong relationships with existing clients while actively acquiring new customers in untapped markets. Expanding into new geographies allows to reach a wider customer base, engage with diverse regional markets, and address their unique requirements and preferences.
