Devson Catalyst Limited

Devson Catalyst Limited operates a manufacturing facility at GIDC Wadhwan City Surendranagar Gujarat with an installed production capacity of 6,205 MT per annum, producing hydrotreating catalysts, sulphur guard catalysts, activated alumina, molecular sieves, ceramic balls and ceramic tower packings used for improving process efficiency, removing impurities and enhancing operational reliability.

The company operates entirely in the B2B segment serving oil and gas refineries, petrochemical plants, steel plants and fertilizer units domestically and exporting to more than 15 countries including the US, UAE, Kuwait, Qatar, Turkey and South Africa. Manufacturing contributes over 93% of total revenue reflecting a largely integrated production model. Its products serve as import substitutes supporting the Government of India's Make in India initiative in specialty chemicals. As of May 31, 2026, the company had 56 permanent employees and promoters Pratapbhai Devjibhai Siyania, Prahladbhai Devjibhai Siyaniya, Patel Savan Prahladbhai and Patel Krishna Savanbhai hold 100% pre-IPO stake.

The issue comprises a fresh issue of ₹39.39 Cr and OFS of ₹2.95 Cr at a price band of ₹112 to ₹118 per share, implying a post-issue market cap of ₹160.34 Cr, listing on BSE SME on July 16, 2026 with anchor allotment on July 8, 2026.

Proceeds will fund a new manufacturing unit capex (₹17.40 Cr), working capital (₹12 Cr) and general corporate purposes. At the upper band, the post-issue P/E of 12.81x FY26 earnings is attractive given EBITDA margins of 29.49% and near debt-free balance sheet (D/E of 0.07). Grey market premium of ₹45 (~38% above cap) signals strong investor appetite. Key strengths include import substitution positioning in high-entry-barrier specialty chemicals, exceptional PAT growth (63% in FY26), near debt-free status, strong EBITDA margins above peers, and reviewer noting "Make in India" catalyst; key risks include small scale (₹55 Cr revenue), customer concentration in industrial sectors, and sustainability of margin expansion from introduction of high-value products.