The proposed IPO will comprise a mix of fresh shares and an offer for sale, the sources said. Proceeds from the fresh issue are expected to be used for capital expenditure and debt reduction.
Equirus, Axis Capital and 360ONE are advising on the transaction, they added.
Packaging business spans consumer and industrial products
Chemco manufactures rigid and flexible plastic packaging products, including polyethylene terephthalate (PET) preforms, bottles, jars, containers, caps, shrink films and stretch wraps. Its products are used in beverages, food, personal care, healthcare, confectionery, lubricants and household products.
According to its website, the company’s clients include Nestlé, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, Cipla, Johnson & Johnson and Danone, besides Coca-Cola, PepsiCo and Bisleri.
Founded in 1996 by polymer engineer Ramawatar Saraogi, the company has expanded into products for baby care, technical textiles, geotextiles, feminine hygiene and houseware. Managing director Vaibhav Saraogi leads the business.
Chemco says it has operations across 23 locations in India and West Asia and processes more than 1.25 lakh tonnes of plastic polymers a year. Its manufacturing facilities include sites in Silvassa, Vadodara, Daman, Halol and Sanand, as well as facilities in the UAE, Bahrain and Saudi Arabia.
The Chemco Group reported operating income of ₹939 crore in FY25, up 22% from ₹768 crore a year earlier, according to Crisil Ratings. Profit after tax rose to ₹61.9 crore from ₹52.3 crore. Operating margins were in the 16-18% range.
Also read: Why Adani Energy fell 10% despite expected MSCI inflows: GQG sold nearly 20 million shares
Industrial companies turn to IPOs as demand rises
Chemco’s plans come as manufacturing and industrial companies attract investor demand in India’s IPO market.
Tempsens Instruments, which makes thermal-engineering products, raised ₹650 crore in an August IPO that was subscribed more than 184 times. Hydraulic fittings maker Hy-Tech Engineers’ ₹136-crore issue received bids for more than 244 times the shares on offer.
Lumino Industries, which makes conductors and power cables and undertakes engineering projects, raised ₹700 crore. Its IPO was subscribed about 124 times, while its shares listed on September 3 at more than 30% above the issue price.
The response to these offerings has prompted other industrial companies to advance their listing plans, as India’s IPO market picks up after a slower start to 2026.
