Mumbai-based chemical products supplier Ujin Pharma has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 22 to raise funds through an initial public offering (IPO) for investments in associate companies and debt repayment.

The company has proposed an IPO of 1.91 crore equity shares, comprising a fresh issue of 1.18 crore shares and an offer-for-sale (OFS) of 72.82 lakh shares by promoters.

Ujin Pharma supplies solvents, specialty chemicals, acids, monomers, pharmaceutical raw materials, and nutraceuticals to customers operating in the pharmaceutical, agrochemical, specialty chemical, petrochemical, industrial, and automotive sectors. It serves its customers through various warehouses and storage facilities located in Bhiwandi, Maharashtra, and Kandla, Gujarat, supported by a sourcing network of 1,277 suppliers.

In addition to its distribution operations, the company has expanded into value-added chemical processing activities through its subsidiary, Shiv Shakti Oxalate, which operates a manufacturing facility in Pune, Maharashtra.

Ujin Pharma plans to utilise Rs 61.7 crore and Rs 21.6 crore from the net proceeds of the fresh issue to invest in its associate companies, Altra Agro-Chem and Altra Pharma-Chem, respectively, through subscription to equity shares, thereby making them subsidiaries.