BHAVIK ENTERPRISES IPO

BHAVIK ENTERPRISES IPO

IPO at a Glance

Key Dates for Investors

• Opening Date: 25 September 2025
• Closing Date: 30 September 2025
• UPI Payment Deadline: 30 September 2025 (5 PM)
• Allotment Announcement: 01 October 2025
• Refund Processing: 03 October 2025
• Demat Credit: 03 October 2025
• Stock Market Listing: 06 October 2025
• Mandate Validity End: 15 October 2025
• Anchor Investor Lock-in Release (50%): 30 October 2025
• Anchor Investor Lock-in Release (Remaining): 29 December 2025

*Dates may be revised as per official updates and final allotment. The anchor lock-in periods are calculated from the actual allotment date.

Understanding Bhavik Enterprises

Founded in 2025 (implied by prospectus date 20250425), Bhavik Enterprises operates dynamically in the polymer trading sector, specializing primarily in Polyethylene (PE) and Polypropylene (PP). These versatile polymers are fundamental to a vast array of industries, including critical sectors like packaging, infrastructure development, and agriculture, highlighting their wide usage and indispensable applications.

The company distinguishes itself by offering a comprehensive and diverse product portfolio that caters to a broad spectrum of customer requirements. Under Polyethylene (PE), Bhavik Enterprises provides Linear Low-Density Polyethylene (LLDPE), Low-Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), and Metallocene Linear Low-Density Polyethylene (MLLDPE). For Polypropylene (PP), their offerings include Homo polymer, Impact Co-polymer, and Random Co-polymer. This extensive range enables the company to meet various specifications and performance needs across different industrial applications.

Bhavik Enterprises operates on an established “Stock & Sale” business model, which is highly efficient for domestic B2B trading of polymers. This approach allows the company to maintain ready inventory and cater to the diverse needs of small, medium, and large-scale manufacturers and businesses, ensuring timely supply and operational flexibility. By stocking a wide range of polymers, the company positions itself as a reliable partner capable of fulfilling varied order sizes and specialized demands within the Indian market. This model not only streamlines the supply chain for its clients but also optimizes inventory management for Bhavik Enterprises, underpinning its market positioning as a responsive and agile supplier in the polymer distribution landscape.

IPO Funds and Structure

The total issue size for Bhavik Enterprises IPO is ₹77 Crores. This comprises a significant Fresh Issue component of ₹63 Crores, which indicates new capital being infused directly into the company’s balance sheet. This fresh capital is crucial for driving future growth initiatives and strengthening the company’s financial foundation. Additionally, there is an Offer for Sale (OFS) component amounting to ₹14 Crores. The proceeds from the OFS go to the selling shareholders, providing them with an exit or partial exit, and do not directly contribute to the company’s operational funds. The substantial fresh issue component suggests a strong intent to invest in and expand the company’s core business operations.

Strategic Utilization of IPO Proceeds

Bhavik Enterprises plans to strategically deploy the net proceeds from the Fresh Issue to fuel its business growth and operational efficiency. A substantial portion, approximately 75.4% or ₹47.50 Crores, is earmarked for funding the company’s working capital requirements. For a trading business like Bhavik Enterprises, robust working capital is essential to manage inventory, procure goods (especially imported raw materials), extend credit to customers, and ensure smooth day-to-day operations without liquidity constraints. Adequate working capital facilitates the ability to seize market opportunities, manage seasonal demand, and mitigate supply chain disruptions, thereby supporting sustained business growth.

The remaining 24.6%, totaling ₹15.50 Crores, has been allocated for general corporate purposes. This allocation provides the company with critical financial flexibility to address various operational and strategic needs. Such purposes typically include meeting ongoing operational expenses, investing in technology upgrades, exploring new market opportunities, strengthening marketing and brand-building activities, or handling unforeseen contingencies. This flexible capital ensures that Bhavik Enterprises can adapt to evolving market conditions and pursue strategic initiatives that contribute to its long-term stability and expansion.

Core Strengths of the Company

• Established “Stock & Sale” Business Model: Bhavik Enterprises operates on a well-honed “Stock & Sale” approach, which is particularly effective in the polymer trading industry. This model allows the company to maintain readily available inventory, ensuring quick fulfillment of orders across diverse customer segments, from small manufacturers to large industrial clients. This operational efficiency fosters strong customer relationships and enhances market responsiveness.
• Comprehensive Product Portfolio: The company boasts an extensive range of polymer products, covering both Polyethylene (PE) and Polypropylene (PP) categories. This includes various grades like LLDPE, LDPE, HDPE, MLLDPE, Homo polymer, Impact Co-polymer, and Random Co-polymer. This broad portfolio enables Bhavik Enterprises to cater to a wide array of industrial applications and customer specifications, reducing reliance on single product lines and expanding its market reach.
• Strong Presence in High-Demand Sectors: Bhavik Enterprises strategically serves high-growth sectors such as packaging, infrastructure, and agriculture. These industries exhibit consistent demand for polymers, providing a stable and expanding market for the company’s products. Its embedded presence in these critical sectors ensures a robust demand pipeline and resilience against economic fluctuations in other areas.
• Strategic Import-Based Sourcing Model and Efficient Logistics: The company leverages a strategic import-based sourcing model, allowing access to a wider range of high-quality polymers and competitive pricing from global markets. This is complemented by an efficient warehouse and depot network across India, which optimizes supply chain logistics. This infrastructure ensures timely and cost-effective distribution, enhancing operational capabilities and customer satisfaction.
• Diversified Customer Base: Bhavik Enterprises caters to a diversified customer base, spanning small, medium, and large manufacturers. This broad client engagement minimizes concentration risk associated with any single customer segment. By serving a varied clientele, the company strengthens its market position, builds long-term relationships, and ensures a more stable revenue stream.

Navigating Potential Business Risks

• Dependence on Imported Raw Materials and Foreign Exchange Fluctuations: The company’s business model relies heavily on imported raw materials. This exposes Bhavik Enterprises to the volatility of foreign exchange rates. Significant adverse movements in currency values could increase procurement costs, impacting profitability and requiring careful hedging strategies to mitigate financial exposure.
• Risk of Termination or Non-Renewal of Distribution Agreements: Bhavik Enterprises’ operations are significantly tied to distribution agreements with key suppliers, such as Borouge. The termination or non-renewal of such critical agreements could severely disrupt the company’s sourcing capabilities, product availability, and overall business operations, potentially impacting revenue and market share.
• Geographical Revenue Concentration: A substantial portion of the company’s revenue is generated from the western region of India. This geographical dependency creates a concentrated risk, as economic downturns, increased competition, or adverse policy changes specific to this region could disproportionately affect Bhavik Enterprises’ financial performance and growth prospects.
• Impact of Import Restrictions or Policy Changes: As an import-based trader, Bhavik Enterprises is vulnerable to changes in government policies, import restrictions, tariffs, or trade regulations. Any adverse policy shifts or increased regulatory hurdles could significantly impact the cost, availability, and ease of importing polymers, thereby affecting business operations and cash flows.
• Intense Competition in the Polymer Trading Segment: The polymer trading industry is competitive, with the presence of both established players and new entrants. Bhavik Enterprises faces continuous pressure on pricing, market share, and the need for differentiation. Intense competition could lead to reduced margins, loss of market share, and the necessity for ongoing investment in competitive advantages.

Investor Interest: Latest Subscription Status

Subscription statistics provide insight into investor interest in the Bhavik Enterprises IPO based on the latest available information:

As of 5:00 PM on September 30, 2025, the IPO witnessed an overall subscription of 1.07 times. The Non-Institutional Investors (NII) category showed strong interest, subscribing 1.30 times their reserved portion. However, the Retail Individual Investors (RII) category was undersubscribed at 0.67 times, indicating moderate interest from retail investors. These figures reflect the market’s response to the IPO and are crucial for understanding demand across different investor segments. It is important to note that Grey Market Premium (GMP) figures are unofficial and may vary; exchange data and official subscription numbers are considered more reliable indicators of investor sentiment.

How to Participate in the IPO

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes on September 30, 2025.