Ujin Pharma Limited IPO

01At a glance

What the company does — imports, distributes and supplies solvents, specialty chemicals, acids, monomers, pharmaceutical raw materials and nutraceuticals, and through its subsidiary Shiv Shakti Oxalate recycles solvents and makes printing chemicals (AP p.2).

Who pays it — pharmaceutical, agrochemical, specialty-chemical, petrochemical, paint, ink and packaging makers, and traders and distributors; indirect sales through traders and distributors were 67.50% of product revenue in the nine months to December 2025 (AP p.2, AP p.7). The top ten customers were 32.64% (AP p.7).

Why it is raising money — ₹617.23 million to subscribe to shares of Altra Agro-Chem and ₹216.43 million for Altra Pharma-Chem, making both associates into subsidiaries; ₹250 million to repay borrowings; and the rest for general purposes (DRHP p.62).

How fast it has grown — revenue from ₹14,258 million in FY23 to ₹16,288 million in FY25, and ₹15,113 million in the nine months to December 2025 (AP p.5).

The one thing to understand — a high-volume, thin-margin trader. EBITDA margin was between 0.92% and 2.64% in every period, while borrowings rose from ₹620 million in FY23 to ₹2,442 million and operating cash flow was negative in three of four periods (AP p.5, AP p.6, DRHP p.332).

02The business, in plain words

A chemicals distributor buys bulk solvents and intermediates from producers in India and abroad, stores them, and supplies smaller lots to manufacturers and traders, handling logistics and credit. It earns a narrow spread on large volumes, so working capital and borrowing costs matter a great deal.

A pharmaceutical maker in Gujarat needs toluene → it orders from Ujin or a trader that buys from Ujin → Ujin imports or buys it domestically, stores it and delivers → the buyer pays on credit terms.

The founders set up the partnership Ujin Pharma Chem in 2005, which later became the company (AP p.4). Imports were 26.56% of purchases in the nine months to December 2025 (AP p.7). Methanol and toluene together were 34.82% of product revenue (AP p.7).

Earnings equation: Profit ≈ tonnes × (selling price − purchase price − logistics) − interest − overheads. The company supplied 263,236 tonnes in the nine months to December 2025 (AP p.6).

03Where the money comes from

Source: AP p.2, AP p.7.

Domestic sales were 85.38% of product revenue in the nine months to December 2025, with Maharashtra and Gujarat the main states; the company exported to 14 countries (AP p.2, AP p.7).

04The growth record

Source: AP p.5, AP p.6, DRHP p.332. FY23 and FY24 are standalone; later periods include the subsidiary.

05What the growth is made of

Volumes rose from 197,609 tonnes in FY23 to 263,236 tonnes in the nine months to December 2025 (AP p.6). Margins widened slowly, from under 1% to 2.64% (AP p.6). Recycling and printing chemicals added 4.34% of revenue in the nine months after Shiv Shakti Oxalate became a subsidiary in FY25 (AP p.2).

06Earnings quality

In the nine months to December 2025 the company reported profit before tax of ₹301.06 million but used ₹307.36 million in operations (DRHP p.61). Over FY23 to the nine months, cumulative operating cash flow was about negative ₹1,132 million against cumulative profit of ₹658 million (our arithmetic, AP p.5, DRHP p.332). The auditors have expressed no qualification or emphasis of matter (AP p.8).

07The balance sheet

Source: AP p.5, AP p.6. The December 2025 ratio uses nine-month EBITDA.

There are 9,705,883 compulsorily convertible preference shares outstanding, converting into the same number of equity shares — about 15% of the fully diluted capital (DRHP p.128, AP p.5).

08What the money is for

Source: DRHP p.62.

Altra Agro is to use the money for working capital and machinery, and Altra Pharma for working capital, in FY27 and FY28 (DRHP p.62, DRHP p.148).

09Who is selling

Source: AP p.1, AP p.4.

10Promoters

The promoters are Jinesh Rasiklal Sheth, managing director, and Umang Ketan Mehta, chairman and whole-time director, who founded Ujin Pharma Chem in 2005 and each have over 20 years in chemicals and pharmaceuticals; and Neha Umang Mehta, non-executive director, who is also a director of Aegar Healthcare (AP p.4, AP p.8). The board has three independent directors (AP p.8).

11Who already owns it

Source: AP p.4, AP p.5.

12What changed just before the IPO

• Subsidiary — Shiv Shakti Oxalate acquired in FY25 (AP p.2).
• Preference shares — 0.01% CCPS placed, with a ₹20 shortfall at allotment now under a pending adjudication application (DRHP p.53).
• Borrowings — up almost fourfold since FY23 (AP p.5).
• Bonus shares — the founders received about 25 million shares each in the past year by bonus or gift (AP p.8).

13Capacity and expansion

The company plans to move from distribution towards manufacturing and value-added processing through Shiv Shakti Oxalate and the two Altra companies (AP p.7). Distribution itself needs little fixed capital: property purchases were ₹10.24 million in the nine months to December 2025 (DRHP p.332).

14Market size and industry structure

The D&B report cited in the offer document puts India's specialty-chemicals market at $64 billion in FY25 and projects $91 billion by FY30, and the chemical-solvent market at ₹426 billion in FY25 (AP p.3). Those projections are D&B's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Breadth of supply — 447 suppliers and 776 customers in the nine months to December 2025 (AP p.6).
• Procurement support for customers, including storage and logistics (AP p.2).

Against that: thin margins, reliance on traders, imports exposed to shipping and geopolitical disruption, and no long-term customer contracts (AP p.7).

16Peers the company named

The full peer table was not read for this study. The document's peer P/E range runs from 4.14 (Shiv Texchem) to 50.29 (Alkyl Amines Chemicals), averaging 21.95, at prices on 12 June 2026 (DRHP p.179). For Ujin it gives return on net worth of 11.87% for FY25 (DRHP p.179). No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Thin margins. EBITDA below 3% of revenue (AP p.6).
• Imports. About a quarter of purchases, exposed to shipping, sanctions and currency (AP p.7).
• Two products. Methanol and toluene are a third of revenue (AP p.7).
• Traders. Two-thirds of sales go through intermediaries, so end-use is hard to know (AP p.7).
• Debt and cash. Net debt at 3.55 times nine-month EBITDA (AP p.6).
• New strategy. Moving into manufacturing through companies it does not yet control (AP p.7).

18Litigation and regulatory matters

Source: AP p.8, AP p.9.

The company has filed an adjudication application over the CCPS allotment shortfall, and reports delayed RoC filings (DRHP p.53).

19Related-party transactions

The company has entered into related-party transactions in each period (AP p.7). The other shareholders of the two Altra associates were not identified in the pages read.

20What the offer document does not say

In the sections read for this study, the document does not give:

• Who else owns Altra Agro-Chem and Altra Pharma-Chem, in the pages read, and at what value the company will subscribe.
• Who holds the CCPS and at what price they were issued.
• The full peer comparison, in the pages read.
• An unresolved cross-reference — the abridged prospectus prints "Error! Bookmark not defined." in its eligibility note (AP p.1).
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Who owns the rest of Altra Agro-Chem and Altra Pharma-Chem, and are any of them promoters or their relatives?
2. At what valuation will the company subscribe to the Altra shares?
3. Why has operating cash flow been negative in three of four periods?
4. Who holds the CCPS, and at what conversion price?
5. What margin do the recycling and printing-chemical businesses earn compared with distribution?

2Sources and cited facts

This study was read from 2 documents the company filed. The 35 figures it cites are listed under the document each came from, with the page and the sentence as printed.