Biopol Chemicals IPO: A High-Growth Specialty Chemicals Play Hits the Market
Biopol Chemicals Limited, a leading manufacturer of specialty chemicals for textiles, home care, and agriculture, is launching its ₹31.26 crore SME IPO on February 6, 2026. This blog breaks down the company’s strong financial trajectory, its transition from the legacy "United Chemical Company," and the key risks and rewards for investors looking at the chemical sector.
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1. Who is Biopol Chemicals Limited?
Founded in 2023 but carrying forward the legacy of United Chemical Company (est. 2005), Biopol Chemicals is a research-driven manufacturer based in Ahmedabad, Gujarat, with key manufacturing operations in Agarpara, West Bengal.
Product Portfolio & Market Reach:
66 Specialty Products: Including 40 silicone-based variants, 15 biochemicals, 5 emulsifiers, and 6 polyelectrolytes.
Key Sectors: Their chemicals are critical for textile processing (softeners/emulsions), home care (cleaning fluids), and agriculture (adjuvants).
Strategic Exports: The company has a consistent export footprint in Bangladesh, a global textile hub, which accounts for approximately 12% of its revenue.
2. Key IPO Details & Timeline
The IPO is a Book Building Issue consisting entirely of a Fresh Issue of equity shares.
| Event | Date / Details |
|---|---|
| IPO Open Date | Friday, February 6, 2026 |
| IPO Close Date | Tuesday, February 10, 2026 |
| Price Band | ₹102 to ₹108 per share |
| Lot Size | 1,200 Shares |
| Minimum Investment (Retail) | ₹2,59,200 (Min 2 Lots / 2,400 shares) |
| Allotment Date | Wednesday, February 11, 2026 |
| Listing Date (Tentative) | Friday, February 13, 2026 |
| Listing Exchange | NSE SME (Emerge) |
3. Financial Performance: Rapid Scaling
Biopol has shown exceptional momentum in its top and bottom lines, particularly after its consolidation:
Revenue Growth: Revenue jumped from ₹17.43 Cr (FY24) to ₹49.13 Cr (FY25). For the 9 months ending Dec 2025, they have already reported ₹48.97 Cr.
Profitability: Net Profit (PAT) rose from ₹2.96 Cr (FY24) to ₹4.33 Cr (FY25).
High Efficiency: The company boasts a ROE of 38.1% and a ROCE of 30.6% (FY25), indicating very strong returns on invested capital.
Valuation: At the upper price band, the post-issue P/E ratio is roughly 14.58x, which is relatively attractive compared to larger peers like Fineotex Chemical.
4. Objectives of the Issue
The capital raised (₹31.26 Cr) will be used for:
Acquisition of Industrial Land (₹12.26 Cr): To expand their manufacturing footprint and capacity.
Debt Repayment (₹11.10 Cr): To reduce interest burdens and move toward a leaner balance sheet.
General Corporate Purposes: For operational flexibility and growth.
5. Investment Analysis: Strengths vs. Risks
Strengths:
Diversified Portfolio: 66 specialized products reduce dependency on any single chemical formulation.
International Footprint: Proven track record in Bangladesh gives them a competitive edge in export margins.
Experienced Promoters: Led by Mr. Santanu Sarkar, who has over two decades of industry experience.
Risks:
Sector Concentration: Heavy reliance on the textile industry (~70% of use-cases) makes them vulnerable to textile market cycles.
Supplier Concentration: Dependence on a limited number of raw material suppliers could impact margins if supply chains are disrupted.
Geographic Risk: Significant revenue is concentrated in West Bengal, Gujarat, and Bangladesh.
6. Conclusion: A Growth Play with Fair Valuation
Biopol Chemicals enters the market with solid fundamentals and a clear roadmap for land acquisition. While the ticket size for retail investors is high (₹2.59 lakh), the company's high ROE and reasonable P/E ratio make it an interesting candidate for investors seeking exposure to the specialty chemicals boom.