Chemical Giant Ujin Pharma Files IPO DRHP; Stocks Signal Expansion into Specialty Markets

Chemical Giant Ujin Pharma Files IPO DRHP; Stocks Signal Expansion into Specialty Markets​

Mumbai-based chemical products supplier Ujin Pharma has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI. The filing, made on June 22, signals the company's intent to raise significant funds through an Initial Public Offering (IPO). These funds are earmarked for strategic investments and the repayment of existing borrowings.

The IPO proposal details a total offering of 1.91 crore equity shares. This structure comprises a fresh issue of 1.18 crore shares, alongside an Offer For Sale (OFS) comprising 72.82 lakh shares from the promoters. The filing positions Ujin Pharma as a major player in India's chemical distribution sector.

Strategic Investments and Corporate Objectives​

Ujin Pharma plans to utilize substantial portions of the net IPO proceeds for targeted investments in its associate companies. A commitment of Rs 61.7 crore is allocated for investment into Altra Agro-Chem, which will be elevated to a subsidiary through the subscription of equity shares. Similarly, Rs 21.6 crore will be used to convert Altra Pharma-Chem into a wholly owned subsidiary.

The corporate filing also details critical financial commitments. A sum of Rs 25 crore is designated for the repayment of certain borrowings. The remaining capital raised during the offering will be deployed for general corporate purposes, supporting sustained growth and operational excellence across its varied business segments.

Diverse Supply Chain Operations and Market Reach​

The company serves a highly diversified client base across multiple industries. Ujin Pharma’s extensive product portfolio includes specialty chemicals, solvents, acids, monomers, pharmaceutical raw materials, and nutraceuticals. These vital products cater to the pharmaceutical, agrochemical, petrochemical, industrial, and automotive sectors.

Operationally, Ujin Pharma maintains robust infrastructure to support its clients nationwide. The company manages various warehouses and storage facilities located in Bhiwandi, Maharashtra, and Kandla, Gujarat. This operational strength is supported by a vast sourcing network that encompasses 1,277 suppliers.

Expansion Through Value-Added Chemical Processing​

Beyond its core distribution model, Ujin Pharma has actively expanded into the value-added chemical processing space. This expansion is managed through its subsidiary, Shiv Shakti Oxalate. The manufacturing facility operated by this subsidiary is based in Pune, Maharashtra, allowing the parent company to integrate manufacturing with its extensive supply chain.

Financial Performance Snapshot for FY2025​

Financial disclosures reveal a complex performance trajectory for Ujin Pharma as of the financial year ended March 2025. For the fiscal year ending March 2025, the company generated revenue amounting to Rs 1,628.8 crore. This represents a notable increase of 9.3 percent compared to the prior period.

The profitability metrics also showed significant movement. While the revenue stream expanded, reported profit for FY2025 stood at Rs 25.4 crore on a base revenue of Rs 1,511.3 crore. This marks a decline of 10.7 percent in profit compared to the previous financial year’s earnings.

SMC Capitals and Marwadi Chandarana Intermediaries Brokers have been appointed as the merchant bankers for the Ujin Pharma IPO, overseeing this significant capital raising exercise.