7 Powerful Insights About Technichem Organics’ ₹25 Crore IPO: GMP, Subscription Status & Key Details

Technichem Organics IPO allotment and listing dates as announced by the company.
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Technichem Organics Limited, a manufacturer of specialty chemicals, pigment and dye intermediates, and air oxidation chemistry products, has launched its Initial Public Offering (IPO). The IPO is a fresh issue aimed at raising ₹25.25 crore, with no offer-for-sale component. This article delves into the IPO’s details, financials, allotment status, and subscription dates.

Technichem Organics IPO Details

  • ₹52 to ₹55 per share is the price range.
  • IPO Size: ₹25.25 crore, or 45.90 lakh shares.
  • Lot Size: 2,000 shares is the minimum bid size (minimum investment of ₹1,10,000).
  • Allocation to Retail Investors: 35%.
  • BSE SME is the listing exchange.
  • Time Frame for Subscription: December 31, 2024, through January 2, 2025.
  • The establishment of a new production facility, called “Plant 4,” and the repayment of current debts will be the main uses of the IPO earnings.

Company Overview

Technichem Organics specialises in producing chemicals for a range of markets, including coatings, dyes, medicines, and agriculture. With significant exports of ₹17.69 crore in FY24, 20.58% of which went to China, the firm works in 11 countries. For the same time frame, its domestic sales totalled ₹28.70 crore.

As of June 30, 2024, the firm employs 72 people and has a plant in Anand, Gujarat, which supports its 950-ton annual manufacturing capacity.

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Financial Performance

Technichem Organics has demonstrated stable financial growth, particularly in profitability:

Fiscal YearRevenue (₹ Cr)Net Profit (₹ Cr)EBITDA Margin (%)
FY2267.023.428.17
FY2350.361.738.65
FY2446.394.7320.54

Net profit increased by 175% in FY24 despite an 8% drop in sales, demonstrating increased operational efficiency.

IPO Grey Market Premium (GMP)

With a stated opening-day premium of ₹11 per share, the grey market’s stance towards Technichem Organics’ IPO is encouraging. This suggests that the IPO is receiving positive investor interest.

  • IPO Allotment Finalization: January 3, 2025.
  • Refunds Initiation: January 6, 2025.
  • Shares Credited to Demat Accounts: January 6, 2025.
  • Listing Date: January 7, 2025.

Valuations and Margins

The company’s FY24 valuation metrics are as follows:

  • Earnings Per Share (EPS): ₹3.71.
  • Price-to-Earnings (P/E) Ratio: 14.02–14.82.
  • Return on Net Worth (RONW): 24.09%.
  • Debt-to-Equity Ratio: 0.90.

Conclusion

For investors looking to get exposure to the speciality chemicals industry, Technichem Organics’ initial public offering (IPO) presents a strong opportunity. Strong financial results, a clear expansion plan, and optimistic market mood all point to a high level of interest in the IPO. Before deciding to invest, potential investors should examine the company‘s goals and performance.

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