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Informist, Tuesday, Jun. 23, 2026

MUMBAI – Ujin Pharma Ltd. has filed a draft red herring prospectus with the Securities and Exchange Board of India on Monday for an initial public offering of a total offer size of up to 19.15 million shares. The offer comprises a fresh issue of up to 11.87 million shares and an offer for sale of up to 7.28 million shares with a face value of INR 10 per share.

Promoters Jinesh Rasiklal Sheth and Umang Ketan Mehta will offload up to 3.64 million shares each under the offer for sale. The public offer, to be made through the book-building process, is being managed by two book-running lead managers – SMC Capitals Ltd. and Marwadi Chandarana Intermediaries Brokers Pvt. Ltd. KFin Technologies Ltd. is the registrar for the offer. Shares of the company are proposed to be listed on both the National Stock Exchange and BSE.

Ujin Pharma is engaged in the distribution and supply of a diversified portfolio of solvents, specialty chemicals, acids, monomers, pharmaceutical raw materials, and nutraceuticals, according to the draft papers. The company's products are supplied to customers in the pharmaceutical, agrochemical, specialty chemical, petrochemical, industrial, and automotive sectors, among others. During the last three fiscal years and the period ended December 2025, the company supplied an aggregate of 852,765.25 tonnes of chemical products to 3,034 customers. The company has warehouses and storage facilities across Bhiwandi in Maharashtra and Kandla in Gujarat, and a sourcing network of 1,277 suppliers.

The company will use INR 617.23 million of the total funds raised to acquire shares of its associate company Altra Agro-Chem Pvt. Ltd., making it a subsidiary. Similarly, INR 216.43 million will be used by Ujin Pharma to buy shares in another associate company, Altra Pharma-Chem Pvt. Ltd. to convert it into a subsidiary.  

Ujin Pharma will use INR 250 million of the funds raised to repay or pre-pay its debt obligations to financial institutions in part or full. The company's contingent liabilities stood at INR 1.86 billion as of Dec. 31. They primarily relate to income tax demands, sales tax, or goods and services tax matters and are currently under rectification or appeal proceedings.

Speaking about the risk factors related to the company, Ujin Pharma said its strategy to transition from a primarily distribution-led business to a more integrated manufacturing and value-added chemical processing business depends on the successful integration and scaling of Shiv Shakti Oxalate Pvt. Ltd. and the proposed investments in associates Altra Agro-Chem and Altra Pharma-Chem. The two associates are currently working capital-intensive and any inability on their part to manage related requirements could risk the benefits foreseen from Ujin Pharma's proposed investment in them. 

Additionally, Ujin Pharma's revenue is concentrated in certain end-use industries, including multi-industry customers, which contributed INR 10 billion or over 66% of the company's revenue from product sales for the nine months ended Dec. 31, 2025. Any adverse developments affecting these end-use industries poses risk to Ujin Pharma's operations.

Further, legal proceedings relating to the company, its subsidiary, and promoters are pending at different levels of adjudication before various courts and tribunals. The company also had certain instances of delays and noncompliance with respect to statutory corporate filings, compliances, and payment of statutory dues, the company said in its draft papers.

For the nine months ended December, the company reported a consolidated net profit of INR 241.26 million on consolidated revenues of INR 15.11 billion. For the financial year 2024-25 (Apr-Mar), the company's consolidated bottom line came in at INR 139.15 million, down 13% on year, while its revenues were at INR 16.29 billion, up over 9%. (Shruti Nair)  End

Edited by Avishek Dutta

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