Chemco Plans ₹1,500-Cr IPO As Manufacturing Firms Turn To Markets

Chemco Plastic Industries, a manufacturer of plastic packaging products for companies including Coca-Cola, PepsiCo and Bisleri, is planning an initial public offering (IPO) of around ₹1,500 crore, according to a Moneycontrol report.

The proposed issue will comprise a combination of fresh shares and an offer for sale by existing shareholders. Money raised through the fresh issue is expected to be used for capital expenditure and debt reduction. Investment banks Equirus, Axis Capital and 360ONE are advising on the proposed share sale, the report said.

Chemco Has A Diverse Packaging Business

Chemco makes rigid and flexible plastic packaging products such as PET preforms, bottles, jars, containers, caps, shrink films and stretch wraps. These products are supplied to businesses across beverages, food, personal care, healthcare, confectionery, lubricants and household goods.

The company has several major consumer brands in its client base. Besides Coca-Cola, PepsiCo and Bisleri, Chemco’s customers include Nestlé, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, Cipla, Johnson & Johnson and Danone, according to its website.

Founded in 1996 by polymer engineer Ramawatar Saraogi, Chemco has expanded into areas including baby-care products, technical textiles, geotextiles, feminine-hygiene products and houseware. The business is currently headed by managing director Vaibhav Saraogi

Revenue Crosses ₹900 Crore

Chemco has operations across 23 locations in India and West Asia and processes more than 1.25 lakh tonnes of plastic polymers annually. Its manufacturing footprint includes facilities in Silvassa, Vadodara, Daman, Halol and Sanand, along with operations in the UAE, Bahrain and Saudi Arabia.

The Chemco Group recorded operating income of ₹939 crore in FY25, up 22% from ₹768 crore in the previous year, according to Crisil Ratings. Profit after tax increased to ₹61.9 crore from ₹52.3 crore, while operating margins stayed between 16% and 18%.

Chemco’s proposed IPO comes against a backdrop of strong demand for industrial offerings. Tempsens Instruments’ ₹650-crore IPO was subscribed more than 184 times in August, while Hy-Tech Engineers’ ₹136-crore issue received bids for more than 244 times the shares on offer.

Lumino Industries’ ₹700-crore IPO was also subscribed around 124 times. Its shares listed on September 3 at a premium of more than 30% over the issue price. The strong response to such offerings has encouraged more industrial companies to speed up their listing plans as India’s IPO market gains momentum after a slower start to 2026.