Mahickra Chemicals Ltd

 Mahickra Chemicals

About the Company:

Mahickra Chemicals Ltd is one of the leaders among manufacturers and suppliers & exporter of Dyestuffs.

company is an ISO 9001:2015, ISO 14001:2015 and GOTS certified company certifying the quality of the product company manufactures.

They manufactures 40 various types of Reactive Dyes. The product of the company caters to textiles & garments manufacturers.

Company manufactures dyes of various concentrations which is the deciding factor for the pricing of the product. They procure quality raw materials from Chemical industries like Bodal Chemicals Ltd. and Kiri Chemicals Ltd.

Company’s main focus is on Black Dyes, because of which they have become a specialised player in that particular segment.

Beside manufacturing of numerous types of Black Reactive Dyes products , they also offer specialty performance chemicals to the Leather& Agrochemicals industry.Company is also trading in some other products like Food Colours, Pigment Powder, Paste Acids and Direct Dyes.

Company generates most of its revenue from export operations and products of the company are exported to countries like, Turkey, Egypt, Bangladesh, etc.

Company has a production capacity of approx. 900 tons per annum. The manufacturing facility of the company is situated at Vatva GIDC in Gujarat.

Revenue Breakup of Export & Domestic Sales: (in Lakhs)

revenue breakup

Capacity Utilization:

capacity utilization

Management Team:

  1. Mr.Miteshkumar Champaklal Gandhi (Designation: Chairman & Managing Director)
  2. Mr. Ashishkumar Champaklal Gandhi (Designation: Whole-time Director)
  3. Mr.Komal Mitesh Gandhi (Designation:Whole -time Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Miteshkumar Champaklal Gandhi 5,29,528 10.00
Ashishkumar Champaklal Gandhi 17,46,623 11.33
Komal Mitesh Gandhi 8,54,113 10.00


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake(%)
Miteshkumar Champaklal
10.31% 7.32%
Ashishkumar Champaklal
34.02% 24.14%
Komal Mitesh Gandhi 16.64% 11.81%
Promoters Group Entities 6.77% 4.80%
Total 67.74% 48.07%


Objectives of the Issue:

  • Working Capital requirements of the Company.
  • General Corporate Purposes.


Fund Utilization:

Particulars Amount (Rs. in Lakhs/Crores)
Working Capital requirements 4.86
General Corporate Expenses 0.39
Net Proceeds 5.25 cr


Positives for the Company:

Expanding Customer Base:

Dye manufacturing is done only in India, China and Indonesia.But most of the global demand is met by India and China, hence the market for us is huge.

Company’s product is currently marketed majorly in Middle East region. Going forward Company intends to cater the market of other international locations like Vietnam,Mexico,Brazil,Africa, USA and Europe.

The demand for dye is ever increasing even in India where catering to newer customer will be comparatively an easier task.

Expanding Production Capacity:

Company plans to increase their production capacity from current 900 MT per annum to 1,500 MT per annum which will enable them to enter into new phase of growth.

Consolidation in the Dye Business:

Indian Dyes and Dyestuff market is highly fragmented, with 40-50% of the market being unorganised.

The recent events including GST, stricter environment norms, rising compliance needs from global clients could eventually lead to a need to consolidate, large and efficient players growing higher than the industry and smaller units closing or consolidating with large players.

Decreasing Competition from China & Increasing demand for Dyes:

Dye industry has only 2 major players across the globe, India and China. With increasing environmental norms and strict government regulations w.r.t operting a chemical industry, the competition which was being faced by China is slowly eroding.

There have been many shutdowns in China posirtively impacting the dye industry in India which has also witnessed growth in Dye prices. There have been a rapid increase in labour cost of late which has given the India a competitive advantage over China.

With decrease in total supply, dye manufacturers have huge opportunity both in terms of volume and value.


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 31st Dec 17
Revenue 19.32 43.55 42.75 34.78 42.25  40.89
Net Profit  0.09  0.17  0.086 0.15   0.35  0.35


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Mahickra Chemicals
10 1.07 23.36 14.86 7.19
Aksharchem (India)
10 71.00 8.74 38.79 183.03
Kiri Industries Limited 10 34.20 15.02 35.33 96.81
Camex Limited 10 1.59 25.38 6.70 23.77


IPO Details:

Details Info
Issue Opens on 16th April 2018
Issue Closes on:. 18th April 2018
Issue Price Rs.24 – 25
Face Value Rs.10
Minimum Lot 6000
Minimum Investment Rs.1,50,000
Issue Constitutes 29.02%
Issue Size Rs.5.25 cr
Market Cap Rs.18.08 cr
Listing at NSE SME
Total Equity Shares Offered (Fresh) 21,00,000
Equity Shares Prior to the Issue 51,34,160
Equity Shares after the Issue 72,34,160


Important Dates:

Finalization of Basis of Allotment on or Before 23rd April 2018
Initiation of Refunds on or Before 24th April 2018
Credit of Equity Shares: on or Before 25th April 2018
Listing Date: on or Before 26th April 2018


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
1.07 23.36 14.86% 7.19


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Subscribe Long Term 5%


Check IPO Allotment Status:

Bigshare Website (Click on the below Link)


Company Contact Info:
Mahickra Chemicals Limited
Plot No. 1209, Phase- 3, GIDC Vatva,
Ahmedabad, Gujarat- 382445, India
Tel: 079-25890811/25832692


IPO Registrar Info:
1st Floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road, Marol, Andheri
East, Mumbai 400059, Maharashtra, India
Tel: +91 22 62638200
Fax: +91 22 62638299


Lead Manager to the Issue:
406-408, Keshva Premises, Behind Family Court, Bandra
Kurla Complex, Bandra (East),
Mumbai – 400051, Maharashtra, India
Tel: +91-22 6194 6700