Chemco Plastic Industries Sets ₹1,500 Crore IPO Amid Rising Investor Interest
Chemco Plastic Industries, a leading manufacturer of plastic packaging products for major consumer brands including Coca-Cola and PepsiCo, is planning to launch an initial public offering (IPO) worth around ₹1,500 crore. The company, which also supplies to Nestlé, Procter & Gamble, and Hindustan Unilever, among others, plans to utilise the primary proceeds from the IPO for capital expenditure and debt reduction.
Chemco's proposed public issue will include both fresh equity issuance and a secondary share sale. The company is currently led by managing director Vaibhav Saraogi and operates across 23 locations in India and West Asia. It processes more than 1.25 lakh tonnes of plastic polymers annually, with operating income of ₹939 crore in FY25, registering a 22% rise from the previous year.
According to Crisil Ratings, Chemco Group's profit after tax increased to ₹61.9 crore from ₹52.3 crore during the same period, with its operating margins remaining stable between 16% and 18%. 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 reportedly advising Chemco on the IPO process. With rising investor interest in industrial companies, Chemco's planned IPO comes amid a wave of expansion and consolidation in the packaging industry.