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Phytochem Remedies IPO Withdraws ₹38 Crore Issue After Undersubscription
Last Updated: 26th December 2025 - 08:21 pm
Jammu-based packaging company Phytochem Remedies IPO has formally withdrawn its ₹38.22 crore SME IPO after the public offering failed to attract sufficient investor interest, highlighting ongoing challenges in the small and medium enterprise public markets.
The Phytochem Remedies IPO, which opened in mid-December on the BSE SME platform, received only a 62 per cent subscription by the close of the three-day bidding period - securing bids for approximately 797 applications against the required minimum.
In a regulatory filing, the company’s management cited unfavourable market conditions and heightened volatility in the broader capital markets as key factors dampening investor sentiment and contributing to weak demand. As a result, the board decided not to proceed with the issue and formally withdrew the Phytochem Remedies IPO.
At the fixed issue price of ₹98 per share, the offer was entirely a fresh issue aimed at funding capital expenditure, machinery acquisition, partial debt repayment, and other corporate needs. However, a subdued response, particularly from non-institutional and retail segments, underscored limited enthusiasm for SME offerings in the current environment.
Market observers noted that the IPO’s performance reflected broader headwinds in the SME primary market, where several recent issues have struggled with subscription levels amid selective investor appetite and volatile sentiment. The grey market also suggested a flat listing, indicating that even secondary expectations were modest.
Phytochem Remedies’ IPO had been slated for listing on December 26, 2025, but with the withdrawal now formalised, the company will need to reassess its capital-raising strategy and time its entry into the primary market more favourably.
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