Technichem Organics Ltd., a key player in the chemicals sector since 1996, is set to go public through its Book Built Issue IPO, which aims to raise ₹25.25 Crores. The company manufactures a wide range of chemicals, including Pyrazoles, Pyrazolones, and specialty chemicals used in industries such as pharmaceuticals, agriculture, and coatings. This IPO, set for a subscription period from December 31, 2024, to January 2, 2025, offers an opportunity for investors to participate in the company’s growth trajectory.

Subscription and GMP Details: The IPO is priced in the range of ₹52 to ₹55 per share, with a market capitalization of ₹95.26 Crores at the higher end of the price band. The IPO has garnered significant attention, with a live subscription status showing 392.62 times oversubscription by the final day, January 2, 2025. The Grey Market Premium (GMP) as of December 30, 2024, stands at ₹14, indicating an expected listing price of ₹69, a potential gain of 25.45% for investors. The IPO is available for a lot size of 2,000 shares, requiring a minimum investment of ₹1,10,000 for retail investors.

Anchor Investors and IPO Details: Technichem Organics has raised ₹7.13 Crores from anchor investors at ₹55 per share, allocating 12,98,000 equity shares. The IPO's book-running lead manager is Shreni Shares Limited, and Bigshare Services Pvt. Ltd. is the registrar. Market Maker services are provided by Shreni Shares Limited. The shares are expected to list on the BSE SME segment on January 7, 2025.

Objectives of the IPO: The net proceeds from this issue will be utilized for:

• Setting up a new plant, "Plant-4," with capital expenditure of ₹703.82 Lakh.
• Repayment of loans availed from banks and financial institutions, amounting to ₹1,023.51 Lakh.
• General corporate purposes.

Financial Performance: Technichem Organics has shown steady growth over the years. In FY24, the company reported a revenue of ₹4,696.84 Lakh with an EBITDA of ₹1,010.61 Lakh and a profit after tax of ₹472.68 Lakh. This steady growth reflects strong fundamentals and a promising outlook for the IPO. The company has a pre-issue EPS of ₹3.71, and the post-issue EPS is ₹2.73. The pre-issue P/E ratio stands at 14.82x, which is significantly lower than the industry P/E ratio of 93.50x, indicating the IPO is attractively priced.

IPO Review: Given the steady financial performance, attractive P/E ratio, and strong market interest, the Technichem Organics IPO presents an opportunity for risk-tolerant investors looking for listing gains. The company’s solid track record in the chemicals industry, along with a reasonable valuation, makes it an appealing proposition for both retail and high-net-worth investors.

How to Check Technichem Organics IPO Allotment Status: To check the IPO allotment status, follow these simple steps:

• Visit the IPO allotment status page.
• Select "Technichem Organics Ltd." from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to view your allotment status.

Investors can check their allotment status from January 3, 2025, on the registrar's website.

Conclusion: With a robust business model and promising growth prospects, Technichem Organics Ltd.'s IPO is an enticing opportunity for investors. However, given the volatility in the market, it is important for investors to carefully assess their risk tolerance before applying.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, B R Goyal.

The Current active IPO is   Fabtech Technologies, Leo Dry Fruits, Davin Sons, and Parmeshwar Metal.

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