Polychem Limited's material subsidiary, Gujarat Poly Electronics Limited (GPEL), has finalized a significant property transaction, marking a strategic move in its operations. The company has executed an agreement to sell its leasehold rights and factory building ownership to Tirex Transmission Private Limited for a consideration of Rs 29 crore.

Transaction Details

The property in question is located at Plot No. B-18, Gandhinagar Electronic Estate, spanning an area of 12,022.40 square metres. The deal encompasses both the leasehold rights to the land and the ownership rights of the factory building constructed on part of the land.

Regulatory Approvals and Timeline

The transaction has progressed through several key stages:

• GPEL received a provisional transfer order (PTO) from the Gujarat Industrial Development Corporation (GIDC), granting permission to transfer and assign the leasehold rights.
• Shareholders of both Polychem Limited and GPEL approved the transaction.
• The agreement was officially executed.

The final completion of the sale is pending receipt of final transfer orders from GIDC.

Financial Implications

Despite the sale, GPEL has made arrangements to relocate its operations to a new location, stating that the move will not adversely affect its turnover.

Buyer Information

Tirex Transmission Private Limited, the buyer in this transaction, is not related to the promoter group of either Polychem Limited or GPEL. The deal is being conducted on an arm's length basis, ensuring transparency and fairness in the transaction.

Regulatory Compliance

The sale has been undertaken in compliance with Regulation 24(6) and Regulation 37A of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations. It is noteworthy that this transaction falls outside any scheme of arrangement.

This property sale represents a significant corporate action for Gujarat Poly Electronics Limited, potentially impacting its operational structure while maintaining its business continuity. Investors and stakeholders will likely keep a close watch on how this transaction affects the company's future financial performance and strategic direction.

Renol Polychem, a manufacturer of color masterbatches and industrial chemicals, made its debut on the National Stock Exchange's (NSE) Small and Medium Enterprises (SME) platform following a successful Initial Public Offering (IPO). The company's shares listed with a modest grey market premium, indicating a cautiously optimistic market sentiment.

IPO Performance

The Renol Polychem IPO garnered significant interest from investors across all categories:

• Overall subscription: 6.83 times
• Qualified Institutional Buyers (QIBs): 8.41 times
• Non-Institutional Investors (NIIs): 6.89 times
• Retail investors: 6.51 times

The company raised Rs 25.77 crore through a fresh issue of 24.54 lakh shares, priced at Rs 105 per share.

Listing Details

• Grey Market Premium: Approximately 3%
• Expected Listing Gain: Rs 3-4 per share over the issue price of Rs 105

Company Overview

Renol Polychem specializes in manufacturing:

• Color masterbatches
• Plastic pigments
• Industrial chemicals
• Polymer additives

The company caters to various sectors, including:

• Plastic packaging
• Automotive
• Consumer goods
• Electronics
• Agriculture

Financial Performance

Renol Polychem has demonstrated remarkable growth in its recent financial results:

Utilization of IPO Proceeds

The funds raised through the IPO will be allocated as follows:

Market Capitalization

Post-listing, Renol Polychem's market capitalization stands at Rs 83.41 crore.

The modest listing premium suggests a cautious but positive market reception for Renol Polychem. Investors will likely keep a close watch on the company's performance in the coming quarters to assess its growth trajectory and market potential in the specialized chemicals sector.