Technichem Organics Ltd. is the manufacturer and exporter of the intermediates for multiple applications since 1996. The Company is mainly engaged in the business of manufacturing of a wide range of chemicals, Pyrazoles, Pyrazolones, Speciality Chemicals, Pigment & Dye Intermediates and Air Oxidation Chemistry that serves multiple industries, including pharmaceuticals, agriculture, coatings, pigments, dyes and others.

Technichem Organics, an Book Built Issue amounting to ₹25.25 Crores, consisting entirely an Fresh Issue of 45.90 Lakh Shares. The subscription period for the Technichem Organics IPO opens on December 31, 2024, and closes on January 02, 2025. The allotment is expected to be finalized on or about Friday, January 03, 2025, and the shares will be listed on the BSE SME with a tentative listing date set on or about Tuesday, January 7, 2025.

The Share price of Technichem Organics IPO is set at ₹52 to ₹55 per equity share. The Market Capitalisation of the Technichem Organics Limited at IPO price of ₹55 per equity share will be ₹95.26 Crores. The lot size of the IPO is 2,000 shares. Retail investors are required to invest a minimum of ₹1,10,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (4,000 shares), amounting to ₹2,20,000.

SHRENI SHARES LIMITED is the book-running lead manager while BIGSHARE SERVICES PVT LTD is the registrar for the Issue. Shreni Shares Limited is Marker Maker for the Technichem Organics IPO.

Technichem Organics Limited IPO GMP Today
The Grey Market Premium of Technichem Organics Limited IPO is expected to be ₹14 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Technichem Organics Limited Day Wise IPO GMP Trend 

Date	IPO Price	Expected Listing Price	GMP	Last Updated
30 December 2024	₹ 55	₹ 69	₹ 14 (25.45%)	03:50 PM; 30 Dec 2024

Technichem Organics Limited IPO Live Subscription Status Today: Real-Time Updates
As of 07:00 PM on 2nd January, 2025, the Technichem Organics IPO live subscription status shows that the IPO subscribed 392.62 times on its Final day of subscription period. Check the Technichem Organics IPO Live Subscription Status Today at BSE.

Technichem Organics IPO Anchor Investors Report
Technichem Organics has raised ₹7.13 Crores from Anchor Investors at a price of ₹55 per shares in consultation of the Book Running Lead Managers. The company allocated 12,98,000 equity shares to the Anchor Investors. Check Full List of Technichem Organics Anchor Investor List.

Note:- Equity Shares allotted to Anchor Investors (if any) are allotted from Qualified Institutional Buyers (QIBs) reservation portion.
Note:- The Number of shares offered shown IPO subscription section table is calculated at the lower end of the price band and Number of shares calculated in IPO details table section is calculated at upper end of the price band in case of Book Building Issue, so there can be difference. This is because we assume shares will be issued by the company at upper band as Anchor Investors also subscribe at upper band and shares will be issued at lower band only if in case of undersubscription of IPO.
Note:- Market Maker portion (if any) are not shown separately in subscription table and included in NIIs reservation portion

Technichem Organics Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online
Technichem Organics IPO allotment date is 03 January, 2025, Friday. Technichem Organics IPO Allotment will be out on 3rd January, 2025 and will be live on Registrar Website from the allotment date. Check Technichem Organics IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Technichem Organics Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Technichem Organics Limited IPO
Technichem Organics proposes to utilise the Net Proceeds towards the following objects: 
1. ₹703.82 Lakh is required for Funding of capital expenditure requirements of the Company towards setting up of a new plant named as “Plant –4”;
2. ₹1,023.51 Lakh is required for Repayment or prepayment, in full or in part, of certain borrowings availed by the Company from banks, financial institutions and non-banking financial companies;
3. General corporate purposes

Refer to Technichem Organics Limited RHP for more details about the Company.

Check latest IPO Review & analysis, Live IPO GMP today, Live IPO Subscription Status Today, Share Price, Financial Information and other details before applying in the IPO.

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About Technichem Organics Limited

BUSINESS OVERVIEW

Technichem Organics Limited manufactures a wide range of chemicals, including Pyrazoles, Pyrazolones, Specialty Chemicals, Pigment & Dye Intermediates, and Air Oxidation Chemistry, serving industries like pharma, agriculture, coatings, and dyes. Its diversified portfolio ensures market stability and resilience.

Operating in 11 countries, with key exports to China, the company leverages cost-effective R&D and advanced processes to deliver high-quality, competitively priced products. Its ISO certification reflects a strong commitment to quality and precision.

With in-house R&D expertise in processes like Halogenation, Esterification, and Hydrogenation, Technichem excels in scaling innovations to commercialization. The company is driven by a vision to lead in specialty chemicals through sustainability, innovation, and ethical practices. As of June 30, 2024, the registered office and manufacturing facility employs 72 personnel. The Banker to the Company is Standard Chartered Bank.

INDUSTRY ANALYSIS

INDIAN MANUFACTURING INDUSTRY
Manufacturing is emerging as an integral pillar in the country’s economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables. The Indian manufacturing industry generated 16-17% of India’s GDP pre-pandemic and is projected to be one of the fastest growing sectors.

The machine tool industry was literally the nuts and bolts of the manufacturing industry in India. Today, technology has stimulated innovation with digital transformation a key aspect in gaining an edge in this highly competitive market. Technology has today encouraged creativity, with digital transformation being a critical element in gaining an advantage in this increasingly competitive industry. The Indian manufacturing sector is steadily moving toward more automated and process-driven manufacturing, which is projected to improve efficiency and enhance productivity.

India has the capacity to export goods worth US$ 1 trillion by 2030 and is on the road to becoming a major global manufacturing hub. With 17% of the nation’s GDP and over 27.3 million workers, the manufacturing sector plays a significant role in the Indian economy. Through the implementation of different programmes and policies, the Indian government hopes to have 25% of the economy’s output come from manufacturing by 2025. India now has the physical and digital infrastructure to raise the share of the manufacturing sector in the economy and make a realistic bid to be an important player in global supply chains.

A globally competitive manufacturing sector is India's greatest potential to drive economic growth and job creation this decade. Due to factors like power growth, long-term employment prospects, and skill routes for millions of people, India has a significant potential to engage in international markets. Several factors contribute to their potential. First off, these value chains are well positioned to benefit from India's advantages in terms of raw materials, industrial expertise, and entrepreneurship.

Second, they can take advantage of four market opportunities: expanding exports, localising imports, internal demand, and contract manufacturing. With digital transformation being a crucial component in achieving an advantage in this fiercely competitive industry, technology has today sparked creativity. Manufacturing sector in India is gradually shifting to a more automated and process driven manufacturing which is expected to increase the efficiency and boost production of the manufacturing industry.

India is gradually progressing on the road to Industry 4.0 through the Government of India’s initiatives like the National Manufacturing Policy which aims to increase the share of manufacturing in GDP to 25 percent by 2025 and the PLI scheme for manufacturing which was launched in 2022 to develop the core manufacturing sector at par with global manufacturing standards. Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of India, Mr Narendra Modi, launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. Government aimed to create 100 million new jobs in the sector by 2022.

Manufacturing exports have registered highest ever annual exports of US$ 447.46 billion with 6.03% growth during FY23 surpassing the previous year (FY22) record exports of US$ 422 billion. By 2030, Indian middle class is expected to have the second-largest share in global consumption at 17%.

India’s gross value added (GVA) at current prices was estimated at US$ 626.5 billion as per the quarterly estimates of the first quarter of FY22. India has potential to become a global manufacturing hub and by 2030, it can add more than US$ 500 billion annually to the global economy. As per the economic survey reports, estimated employment in manufacturing sector in India was 5.7 crore in 2017-18, 6.12 crore in 2018-19 which was further increased to 6.24 crore in 2019-20. India's display panel market is estimated to grow from ~US$ 7 billion in 2021 to US$ 15 billion in 2025. As per the survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI), capacity utilisation in India’s manufacturing sector stood at 72.0% in the second quarter of FY22, indicating significant recovery in the sector. The manufacturing GVA at current prices was estimated at US$ 110.48 billion in the first quarter of FY24.

India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country. The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 3.4 trillion along with a population of 1.48 billion people, which will be a big draw for investors. The Indian Cellular and Electronics Association (ICEA) predicts that India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to US$ 100 billion by 2025 through policy interventions.

One of the initiatives by the Government of India's Ministry for Heavy Industries & Public Enterprises is SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced Manufacturing and Rapid Transformation Hubs. This is expected to increase competitiveness of the manufacturing sector in the capital goods market. With impetus on developing industrial corridors and smart cities, the Government aims to ensure holistic development of the nation. The corridors would further assist in integrating, monitoring and developing a conducive environment for the industrial development and will promote advance practices in manufacturing.

INDIAN CHEMICAL INDUSTRY
Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India's chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040.

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world's production of dyestuffs and dye intermediates. India’s agrochemicals export was estimated to be at US$ 3.12 billion from April 2023 to December 2023. Indian colourants industry has emerged as a key player with a global market share of ~15%. The country’s chemicals industry is de-licensed, except for a few hazardous chemicals. India has traditionally been a world leader in generics and biosimilars and a major. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at the global level (excluding pharmaceuticals).

From April 2023 to December 2023, India's dye exports (Dyes and Dye Intermediates) totalled US$ 1.69 billion. India’s proximity to the Middle East, the world’s source of petrochemicals feedstock, enables it to benefit on economies of scale.

India's chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 383 billion to India’s GDP by 2030.

An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025.

Specialty chemicals account for 20% of the global chemicals industry's US$ 4 trillion, with India's market expected to increase at a CAGR of 12% to US$ 64 billion by 2025. This gain would be driven by a healthy demand growth (CAGR of 10-20%) in the export/end-user industries. The Department of Chemicals & Petrochemicals intends to bring PLI in the chemical & petrochemical sector and will redraft the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) guidelines.

The Indian chemical industry is expected to further grow with a CAGR of 11-12% by 2027, increasing India’s share in the global specialty chemicals market to 4% from 3%. A shift in the global supply chain brought on by the China+1 strategy and a resurgence in domestic end-user demand was expected to fuel significant revenue growth of 18–20% in 2022 and 14–15% in 2023.

Despite the pandemic situation, the Indian chemical industry has numerous opportunities considering the supply chain disruption in China and the trade conflict between the US, Europe and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments.

Additional support, in terms of fiscal incentives, such as tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units will enhance production and development of the industry. The dedicated integrated manufacturing hubs under the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to attract an investment of Rs. 20 lakh crore (US$ 276.46 billion) by 2035.

To bring about structural changes in the working of the domestic chemical industry, future investments should not only focus on the transportation of fuels such as petrol and diesel but also on crude-to-chemicals complexes or refineries set up to cater to the production of chemicals.

BUSINESS STRENGTHS

1. Multi-Product Capability : Technichem Organics specializes in chemical intermediates with complex and differentiated processes. Its versatile manufacturing infrastructure allows for the production of multiple products, catering to industries like agrochemicals, coatings, pharmaceuticals, dyes, and pigments. Flexible facilities enable swift adaptation to market demands, minimizing customer concentration risks while maintaining a well-balanced product portfolio.

2. Established Infrastructure and Integrated Production : The company operates an ISO-certified production facility in Khambhat, Gujarat, spanning 26,079 square meters, with a total installed capacity of 950,000 kg annually. The facility includes advanced systems such as high-temperature reactions up to 220°C and low-temperature reactions up to -100°C, supported by an in-house quality department, effluent treatment, and R&D laboratories.

3. Focus on R&D and Technology : Extensive R&D initiatives focus on upgrading process technology, reducing costs, and developing new products. Capabilities include multi-step synthesis, complex chemistries, and advanced equipment like HPLC and gas chromatography, enabling efficient customization and cost optimization.

4. Quality, Environment, Health, and Safety Standards : Comprehensive quality systems cover all manufacturing and supply chain processes to ensure consistent product quality and adherence to regulatory standards. A well-equipped laboratory and rigorous testing maintain high standards of safety and efficacy.

5. Experienced Leadership Team : Led by seasoned industry experts, the management team has extensive experience in the chemical sector, enabling effective strategy formulation, market adaptation, and client relationship management.

6. Efficient Supply Chain : Streamlined supply chain operations reduce lead times, minimize inventory costs, and enhance responsiveness to market changes. This efficiency provides a competitive edge in meeting precise, time-sensitive industry demands.

7. Long-Standing Customer Relationships : Diverse and long-term customer relationships span 11 countries and 9 Indian states, reducing dependency on specific geographies or industries. Consistent engagement supports product expansion, economies of scale, and a lower cost base, with the top 10 customers contributing significantly to revenue

BUSINESS STRATEGIES

1. Expansion and Upgradation of Manufacturing Facility : Enhance manufacturing capacities for existing and new products by scaling up production from pilot to plant level. Increase production capacity through new machinery and fund capital expenditure for facility expansion.

2. Geographical Expansion : Diversify the customer base domestically and globally by expanding market presence, implementing region-specific strategies, and targeting developed markets to address growing demand in key industries like pharmaceuticals, agrochemicals, and pigments.

3. Shift to High-Value Products : Transition from high-volume, low-value products to low-volume, high-value offerings, focusing on air oxidation chemistry and specialty benzoic acids for higher profit margins and improved competitiveness.

4. Operational Efficiency and Productivity : Maintain low operating costs by enhancing efficiency, increasing production volumes, optimizing inventory, and adopting sustainable cost-reduction methods. Strengthen manufacturing integration to achieve economies of scale and improve profitability.

5. Customer and Supplier Relationships : Build and maintain long-term relationships with suppliers and customers through consistent participation in trade exhibitions and reliable, timely product delivery to support market expansion.

BUSINESS RISK FACTORS

1. Geographical Concentration Risk : A significant portion of sales is generated from operations in regions like Gujarat, Maharashtra, Telangana, and Haryana. This concentration increases exposure to adverse economic, demographic, and competitive changes in these areas, potentially hindering expansion into other markets and impacting financial performance.

2. Dependence on Specific Product Categories : Revenue is heavily reliant on products like pharma chemicals, high-performance pigments, and specialty chemicals. Any reduction in demand due to factors such as customer market failure, increased competition, pricing pressures, or regulatory actions could adversely affect financial performance.

3. Export Dependency and Trade Risks : Exports contribute significantly to revenue, with 45.03% in FY2024. Risks include global trade disruptions, tariffs, sanctions, and geopolitical conflicts, which can lead to delays, payment issues, and restricted market access, adversely impacting financial results.

4. Single Manufacturing Facility Risk : The sole manufacturing unit in Khambhat, Gujarat, is vulnerable to localized disruptions, such as natural disasters, civil unrest, or policy changes. Any operational suspension or inefficiency in this region could severely affect production, customer commitments, and business reputation.

NOTE : Technichem Organics faces significant risks due to geographical concentration, dependence on specific product lines, reliance on exports, and a single manufacturing facility. These factors expose the company to competition, economic fluctuations, trade restrictions, and operational disruptions.