Shlokka Dyes Ltd (BSE SME)

Shlokka Dyes IPO Details

Company Financials In Crores

Company Overview

Established in 2021, Shlokka Dyes Limited is a specialized manufacturer of synthetic organic dyes and pigments, primarily serving the textile industry. The company produces a diverse range of dyes, including reactive, direct, basic, and digital printing dyes, which are also used in the leather and paper sectors.

Key Operational Details
The company operates from an integrated manufacturing facility in Gujarat, which spans 5,000 square meters and has a built-up area of 5,731.81 square meters. This plant has an annual production capacity of 9,000 metric tonnes (MT) and is ISO certified, underscoring its commitment to international quality standards.

Quality Assurance
A significant competitive strength is its rigorous quality control processes managed through an in-house laboratory. The lab conducts critical tests such as HPLC (High-Performance Liquid Chromatography), shade matching, and checks for fastness, stability, and compatibility to ensure all products meet stringent customer expectations.

Product Portfolio
The company's product range includes:

• M-X Dyes

• H&P Dyes

• HE Dyes

• VE Dyes

• RR Dyes

The Company Shlokka Dyes IPO proposes to utilise the Net Proceeds from the Issue towards the following objects:

The primary objective is to meet the company's Working Capital requirement, for which Rs. 28.00 crores is allocated. A significant portion of the proceeds, Rs. 11.50 crores, will be used for the Repayment of Debt. Furthermore, Rs. 6.13 crores is allocated for Capital Expenditure for plant and machineries. Additionally, a portion of the funds will be used for General Corporate Purposes

Strength

Stringent Quality Assurance: Ensures product reliability and consistency.

Experienced Management: Brings extensive market knowledge to guide company strategy.

Integrated Manufacturing Process: Allows for better control over production and cost-efficiency.

Weakness

Regulatory & Compliance Risk – Manufacturing units are subject to periodic inspections by the Gujarat Pollution Control Board (GPCB); any non-compliance could lead to penalties or operational disruptions. 

Capital Expenditure Delay – Delay in placing orders or vendor delays in delivering equipment/machinery may cause time and cost overruns.

Fundraising & Financing Risk – The company had to withdraw its DRHP due to pending NOC from SBI; inability to secure approvals or funding could affect future growth plans.