An Ahmedabad-based B2B manufacturer of unsaturated polyester resins and complementary products opens its Rs 17.88 crore BSE SME issue on September 9
Amtech Esters Ltd (AEL), a manufacturer of Unsaturated Polyester Resins (UPRs) and complementary products, is looking to raise Rs 17.88 crore through its maiden SME IPO and list on the BSE SME platform.
The company operates primarily in the B2B segment and manufactures UPRs, while also trading in complementary products such as fiberglass, hardeners, silicones and other ancillary products used across the resin and FRP value chain.
The business model is built around offering customers a broader sourcing basket rather than a single resin product. By supplying UPRs alongside curing agents, reinforcement materials, finishing products and other application-specific consumables, AEL aims to provide an integrated sourcing solution to customers.
Its product portfolio spans polyester resins, fiberglass of different variants, hardeners, silicones and pigments, with these products finding applications across paints, varnishes, dyes, glue and allied chemical and industrial applications.
The company also has exposure to pigments through its wholly owned subsidiary, Croda Pigments Private Limited (CPPL), which manufactures pigments used as colourants and additives in industrial and household products.
AEL’s operations therefore extend beyond a standalone resin manufacturing business, with the subsidiary providing an additional vertical that is aligned with the broader chemicals and industrial-products space.
The company says its production processes are designed around prescribed quality standards and customer requirements. It has dedicated Research & Development and Quality Control functions and is ISO 9001:2015 certified.
As of March 31, 2026, the company had 60 employees.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 9, 2026 |
| Issue Closes | September 11, 2026 |
| Listing | BSE SME |
| Issue Type | Fixed Price |
| Price Band | Rs 71 – Rs 75 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 17.88 crore (23,84,000 shares) |
| Minimum Application | 3,200 shares |
| Minimum Investment at Upper Band | Rs 2,40,000 |
| Post-IPO Market Cap | Rs 66.22 crore |
| IPO as % of Post-IPO Capital | 27.00% |
| Lead Manager | Credora Partners Pvt. Ltd. |
| Registrar | Maashitla Securities Pvt. Ltd. |
| Market Maker | Nikunj Stock Brokers Ltd. |
The issue consists entirely of a fresh issue of 23.84 lakh equity shares. At the upper price band of Rs 75, the company is seeking to mobilise Rs 17.88 crore.
The proceeds are largely earmarked for strengthening the subsidiary and reducing debt. AEL plans to invest Rs 8.81 crore in its wholly owned subsidiary Croda Pigments Private Limited, while Rs 4.20 crore will be used towards repayment or prepayment of certain borrowings.
The balance will be utilised for inorganic growth and general corporate purposes.
The use of proceeds towards the subsidiary is an important aspect of the issue, as it indicates that part of the IPO capital is intended to support expansion beyond the company’s existing UPR operations.
Post-IPO, the company’s paid-up equity capital will rise from Rs 6.45 crore, comprising 64,45,168 shares, to Rs 8.83 crore, comprising 88,29,168 shares.
At the upper price band, this translates into an implied post-issue market capitalisation of approximately Rs 66.22 crore.
GMP Watch
Amtech Esters IPO is currently commanding a grey market premium (GMP) of around ₹7–8 per share against the upper issue price of ₹75. This implies an indicative listing price of around ₹82–83, or a premium of roughly 9–11% over the issue price.
GMP remains an unofficial and unregulated indicator and can change quickly.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 27.24 | 36.97 | 40.75 |
| Net Profit (PAT) | 2.85 | 3.79 | 4.28 |
| PAT Margin (%) | 11.53 | 10.09 | 10.38 |
| RoCE (%) | 30.77 | 35.10 | 30.16 |
AEL has reported consistent growth in both revenue and profit over the three reported financial years.
Total income increased from Rs 27.24 crore in FY24 to Rs 36.97 crore in FY25 and further to Rs 40.75 crore in FY26. Net profit rose from Rs 2.85 crore to Rs 3.79 crore and Rs 4.28 crore over the same period.
The numbers indicate a steadily expanding business, although the rate of profit growth has moderated compared with the sharp increase seen in revenue between FY24 and FY25.
One factor to note is that FY24 earnings received a boost from other income of Rs 2.64 crore. This makes the underlying quality and sustainability of operating earnings an important consideration when assessing the company’s valuation.
AEL reported an average EPS of approximately Rs 5.94 and an average RoNW of 25.94% for the last three fiscals.
At the upper IPO price of Rs 75, the issue is valued at approximately 15.46 times FY26 earnings on the post-IPO fully diluted equity base. On FY25 earnings, the P/E works out to around 17.44 times.
The issue is also priced at a P/BV of approximately 2.47 times based on the March 31, 2026 NAV of Rs 30.38 per share. Based on the post-issue NAV of Rs 42.43, the P/BV works out to approximately 1.77 times.
Analysts believe the issue appears fully priced when assessed against the company’s recent average earnings, leaving relatively limited room for valuation comfort at the IPO price.
At the same time, the company’s RoCE has remained above 30% in each of the three reported years, which is a positive indicator of capital efficiency and deserves to be monitored as the business scales.
AEL is a relatively small company with a post-IPO market capitalisation of around Rs 66.22 crore. While a smaller base can provide room for growth, it also means that the company is more vulnerable to customer concentration, working-capital pressures, raw-material fluctuations and business-cycle volatility.
Analysts consider the IPO fully priced based on recent average earnings. Any slowdown in revenue or profitability after listing could therefore put pressure on the valuation.
The company’s manufacturing business is exposed to fluctuations in the prices and availability of chemical and other raw materials. The ability to pass on increases to B2B customers will be important for maintaining margins.
The relatively small post-IPO equity base and market capitalisation could result in lower liquidity compared with mainboard stocks. Investors should be prepared for potentially sharp price movements and a longer holding period.
A significant portion of the IPO proceeds is being invested in Croda Pigments Private Limited. The success of this deployment will depend on the subsidiary’s ability to scale operations and generate adequate returns from the additional capital.