Phychem Technologies IPO Day 1: Subscription status, review — here's what you need to know
- Phychem Technologies IPO opened on August 31, 2026, with a total subscription of 1.17x by 15:15 IST.
- QIB category led the demand with a 3.53x subscription, significantly outpacing other categories.
- Retail subscription jumped 85.7% intraday to reach 0.13x, showing growing interest from individual investors.
- The company reported revenue of ₹56.47 crore and PAT of ₹4.09 crore in FY26.
- Issue proceeds will be used for repaying borrowings, procuring machinery, and working capital.
*this image is generated using AI for illustrative purposes only.
Phychem Technologies IPO closed with an overall subscription of 19.26x. The issue witnessed a dramatic late-day surge, with Non-Institutional Investors (bHNI) jumping 1379.2% and Retail investors rising 679.1% in the final hours. Qualified Institutional Buyers (QIB) also ticked up to 4.31x.
Final Subscription Status
The IPO opened on August 31, 2026, and closed on September 2, 2026. Below is the day-wise subscription progression:
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 31-08-2026 | 3.53x | 0.24x | 0.62x | 0.13x | 1.17x |
| Day 2 | 01-09-2026 | 3.53x | 1.24x | 1.47x | 1.32x | 1.96x |
| Day 3 | 02-09-2026 | 4.31x | 25.59x | 50.26x | 17.92x | 19.26x |
Intra-day Timeline (Day 3)
Momentum picked up sharply in the final session. Here is the hourly pace on September 2, 2026:
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 3.53x | 1.73x | 2.30x | 2.62x |
| 12:15 | 3.53x | 2.33x | 2.94x | 3.13x |
| 13:15 | 3.53x | 3.29x | 3.80x | 3.80x |
| 14:15 | 3.53x | 5.32x | 5.23x | 5.45x |
| 15:15 | 3.53x | 14.36x | 10.24x | 10.94x |
| 16:15 | 4.31x | 25.59x | 17.92x | 19.26x |
| 17:15 | 4.31x | 25.59x | 17.92x | 19.26x |
Category-wise Breakdown
- QIB: Subscribed 4.31 times, showing a +22.1% jump from the day-open figure.
- NII (bHNI): Subscribed 25.59 times by end of Day 3, leading the surge with a massive 1379.2% increase.
- NII (sHNI): Subscribed 50.26 times.
- Retail: Subscribed 17.92 times, picking up pace in the final hours with a 679.1% jump.
About the Company
Phychem Technologies Limited is engaged in manufacturing rotational molding compounds, which serve as key raw materials for producing hollow plastic products. Founded in 2013, the company supplies customized polyethylene-based compounds to industries including building and construction, water management, agriculture, automotive, and consumer products. The company is led by MD Umakant Nivrutti Savadekar and CFO Ulka Umakant Savadekar.
Financial Highlights
The company has shown consistent revenue growth over the last three years. Key standalone financials are as follows:
| Particulars | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 46.97 | 50.30 | 56.47 |
| Total Profit/PAT (₹ crores) | 1.69 | 2.84 | 4.09 |
| Total Equity (₹ crores) | 6.86 | 9.70 | 13.79 |
Revenue grew from ₹46.97 crores in FY 2024 to ₹56.47 crores in FY 2026. Total profit increased from ₹1.69 crores to ₹4.09 crores in the same period.
Objects of the Issue
The net proceeds from the IPO will be utilized for the following purposes:
- Repayment in full or in part, of certain outstanding borrowings: ₹2.50 crores
- Funding the capital expenditure towards procurement of plant and machinery: ₹5.15 crores
- Funding to meet working capital requirements: ₹3.00 crores
- General Corporate Purpose: Amount not specified in lakhs
Risk Factors
- Dependence on Manufacturing Facility: The company operates from a single facility in Nashik, making it vulnerable to operational disruptions.
- Customer Concentration: Top 10 customers contribute approximately 50-53% of revenue, with no long-term agreements in place.
- Supplier Concentration: A single largest supplier contributes over 60% of purchases, exposing the company to supply disruptions.
What's Next
- Allotment Date: September 3, 2026
- Listing Date: September 7, 2026
- Basis of Allotment: Pro-rata basis as per SEBI regulations for oversubscribed issues.
Will the heavy QIB subscription (3.53x) lead to a significant listing premium, or will weak retail and NII participation cap the upside?
How might the company's reliance on a single manufacturing facility in Nashik impact its ability to execute the planned ₹5.15 crore machinery expansion?
Given that the top 10 clients contribute over 50% of revenue, what is the risk of order volatility if key customers shift suppliers post-IPO?
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