Kolkata: A construction chemical manufacturing company headquartered in Howrah is eyeing to raise Rs 7.73-crore through its first-ever IPO of equity shares on the NSE Emerge listing.
Sanjay Goenka, managing director of Hindcon Chemicals Ltd, today told a news conference that the IPO will be opened on 26 February and close on 28 February.
“There will be 27,60,000 equity shares of face value Rs 10 each on offer at the cost of Rs 28 each. Our target is to raise Rs 7.73-crore that we will be utilising to meet the working capital requirement,” he said.
Hidcon Chemicals, which has been in operation since 1998, has its manufacturing unit at Domjur in Howrah and its permanent employee strength is 120. The company manufactures about 100 products that include waterproofing additives, sodium silicate, plasticisers, etc.
“Our installed capacity is 30,000 million ton per annum and at present, we are using 60 per cent of the capacity. In 2014-15 fiscal year our profit after tax was Rs 34.48-lakhs, in 2015-16 it rose to Rs 86.20-lakhs, in 2016-17 it was Rs 2.05-crore, and till September this fiscal year the net profit stood at Rs 2.18-crore,” Goenka said.
Hindcon, which exports about 32 per cent of its products to Nepal, Bhutan, and Bangladesh, is eyeing gross sales of Rs 39-crore this fiscal year ending March 2018. To meet the ever-growing production, the company is in need of working capital.