New Delhi: The initial public offering (IPO) of Jammu-based packaging company Phytochem Remedies (India) has opened for subscription today, Thursday. The IPO has come on the BSE SME platform. In the grey market, the premium (GMP) is currently zero, which means investors are not expecting big listing gains at the moment. The company wants to raise Rs 38.22 crore through this IPO at a fixed price of Rs 98 per share.
Fresh Issue and Important Dates
This IPO consists entirely of a fresh issue of 39 lakh shares. Investors can apply from today, and the subscription window will close on December 22. The company’s shares are expected to be listed on the BSE SME platform on December 26, if all goes as planned.
What Grey Market Premium Shows
In the unofficial grey market, the shares are trading at a premium equal to the issue price, which effectively means no premium. This suggests that investors are expecting a flat or neutral listing. Market experts say that the lack of GMP reflects a cautious mood toward SME IPOs. This is because regulations for SME listings have become stricter and investors are now more selective.
Investment Requirement for Retail Investors
At the issue price, Phytochem Remedies’ pre-IPO market capitalization is around Rs 115 crore. The minimum investment for retail investors is quite high at around Rs 2.35 lakh. This is because investors must apply for at least 2,400 shares. About 47.5 percent of the issue is reserved for retail and non-institutional investors. Around 5 percent of the issue is set aside for the market maker, Aftertrade Broking.
About the Company’s Business
Phytochem Remedies manufactures corrugated boxes and boards used in industries such as FMCG, food and beverages, pharmaceuticals, pesticides, and automobiles. The company has two manufacturing units located at Bari Brahmana in Jammu. As of September 2025, the company employed 51 people.
Financial Performance and Use of IPO Funds
The company’s financial performance has improved over the last two years. In FY25, revenue grew by 12 percent, while profit after tax nearly doubled to Rs 4.48 crore. In the first half of FY26, the company reported a profit of Rs 3.75 crore. The IPO proceeds will mainly be used for buying machinery, civil construction, repayment of some debt, and general corporate purposes.
