Biopol Chemicals IPO Makes Weak Debut, Lists at ₹111 then Hits Lower Circuit Against Healthy 22.33x Subscription

Biopol Chemicals Ltd, a company incorporated in 2023 engaged in manufacturing and distribution of specialty chemicals categorized into silicones, emulsifiers, biochemicals, and polyelectrolytes with product portfolio comprising 66 products including 40 silicone-based products, 5 emulsifier-based products, 15 biochemical products, and 6 polyelectrolyte products finding applications across multiple industries including textiles, home care, agriculture, and industrial chemicals, made a weak debut on NSE SME on Friday, February 13, 2026. After closing its IPO bidding between February 6-10, 2026, the company commenced trading with a modest premium of 2.78% opening at ₹111.00 before quickly hitting lower circuit at ₹105.45 (down 2.36% from issue price).

Biopol Chemicals Listing Details

Biopol Chemicals launched its IPO at ₹108 per share with minimum investment of 2,400 shares costing ₹2,59,200. The IPO received healthy response with subscription of 22.33 times - individual investors at 20.80 times, NII at 24.49 times (bNII at 27.49 times, sNII at 18.48 times), QIB at 21.05 times, total applications of 12,276.

First-Day Trading Performance

Listing Price: Biopol Chemicals opened at ₹111.00 representing modest premium of 2.78% from issue price of ₹108.00, quickly hit lower circuit at ₹105.45 (down 2.36%), with VWAP at ₹110.89, reflecting weak market sentiment with initial premium evaporating as selling pressure mounted creating losses for IPO investors with turnover of ₹20.59 crore, traded volume of 18.56 lakh shares, and market capitalisation of ₹113.94 crore against pre-IPO market cap of ₹116.70 crore with 100% sell-side visible in order book indicating complete lack of buying interest.

Growth Drivers and Challenges

Growth Drivers:

Strategic Presence: 4 establishments across Gujarat and West Bengal including manufacturing unit with installed capacity of 18,25,000 litres per annum along with corporate office and warehouse ensuring efficient operations and distribution with export presence in Bangladesh.

Quality Certifications: Quality certification and quality assurance capabilities with experienced promoter and management team ensuring standardized product quality for diverse industrial applications.

Strong Financial Growth: Revenue growing from ₹17.43 crore in FY24 to ₹49.15 crore in FY25, ROE of 36.32%, ROCE of 26.32%, healthy PAT margin of 12.29%, EBITDA margin of 18.41%.

Challenges:

Listing Performance: Despite healthy 22.33x subscription, opening premium of 2.78% quickly evaporated with stock hitting lower circuit at 2.36% below issue price indicating market concerns over valuations.

Increased Leverage: Debt-to-equity ratio increased to 0.76 from 0.57 with total borrowings rising to ₹14.92 crore indicating significant increase in financial leverage, significant promoter dilution from 89.88% to 65.81% post-IPO.

Small Scale Operations: Very young company incorporated in 2023 with only 24 employees, small post-IPO equity capital indicating longer gestation for mainboard migration in competitive specialty chemicals segment.

Utilisation of IPO Proceeds

Industrial Land: ₹12.26 crore for acquisition of industrial land for future expansion and manufacturing capacity enhancement.

Debt Repayment: ₹11.10 crore for repayment or prepayment of borrowings availed from banks, financial institutions, and non-banking financial companies strengthening balance sheet.

General Corporate Purposes: ₹4.04 crore for general corporate purposes.

Financial Performance

Revenue: ₹48.97 crore for 9 months ended December 2025, ₹49.15 crore for FY25, significant growth from ₹17.43 crore in FY24, reflecting rapid expansion in specialty chemicals manufacturing and distribution operations across domestic and export markets.

Net Profit: ₹6.00 crore for 9 months FY26, ₹4.33 crore in FY25, growth from ₹2.96 crore in FY24, demonstrating improving profitability with post-IPO EPS of ₹7.41 and P/E of 14.58x.