NewsPhychem Technologies IPO Day 3: Issue subscribed 3.13x so far. Check issue details and key datesPhychem Technologies IPO Day 3: Issue subscribed 3.13x so far. Check issue details and key dates
- Phychem Technologies IPO subscribed 3.13 times by end of Day 3.
- NII (bHNI) category jumped 34.7% in the final hours of bidding.
- Retail subscription rose to 2.94x, up from 2.30x earlier in the day.
- QIB category remained stable at 3.53x throughout the issue.
- Allotment expected on September 3, 2026; listing on September 7, 2026.
*this image is generated using AI for illustrative purposes only.
Phychem Technologies IPO concluded its bidding on Day 3 with an overall subscription of 3.13x. The issue saw a significant late-day surge, with Non-Institutional Investors (bHNI) jumping 34.7% and Retail investors adding 27.8% in the final hours. Qualified Institutional Buyers (QIB) drove early demand, subscribing 3.53 times.
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 | 3.53x | 2.33x | 3.40x | 2.94x | 3.13x |
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 |
Category-wise Breakdown
- QIB: Subscribed 3.53 times. This category remained stable throughout the bidding period.
- NII (bHNI): Subscribed 2.33 times by end of Day 3, showing significant growth from 1.73x earlier in the day.
- NII (sHNI): Subscribed 3.40 times.
- Retail: Subscribed 2.94 times, picking up pace in the final hours with a 27.8% 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.
How might the heavy reliance on a single manufacturing facility in Nashik impact Phychem's ability to meet increased demand post-listing?
What are the potential risks associated with the company's high customer concentration, given the absence of long-term supply agreements?
Will the allocation of ₹5.15 crores for plant and machinery procurement be sufficient to mitigate the supply chain vulnerability posed by a single dominant supplier?
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