Chemco Plastic Industries Eyes ₹1,500 Crore IPO Amid Rising Investor Interest

Checmo Plastic Industries, a leading manufacturer of plastic packaging products for major consumer brands, is planning an initial public offering (IPO) worth around ₹1,500 crore. The proposed public issue will include both fresh equity issuance and a secondary share sale. Chemco plans to utilise the primary proceeds for capital expenditure and debt reduction.

The company operates across 23 locations in India and West Asia, with manufacturing facilities in India, the United Arab Emirates, Bahrain, and Saudi Arabia. It processes over 1.25 lakh tonnes of plastic polymers annually and has a diversified product portfolio that includes PET preforms, bottles, jars, containers, caps, shrink films, and stretch wraps.

Chemco supplies packaging solutions to several leading consumer companies, including Nestlé, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, Cipla, Johnson & Johnson, and Danone. The company's strong operational footprint and financial growth have made it an attractive investment opportunity.

Chemco Group reported operating income of ₹939 crore in FY25, registering a 22% rise from ₹768 crore in the previous year. Profit after tax increased to ₹61.9 crore from ₹52.3 crore during the same period. The proposed IPO is expected to provide Chemco with additional capital to support future growth while strengthening its balance sheet.

Investment banks Equirus, Axis Capital, and 360ONE are advising Chemco on the IPO process. The planned IPO comes amid rising investor interest in industrial companies as businesses seek capital to expand capacity and strengthen operations.