Technichem Organics IPO opens on December 31, 2024, offering 45.90 lakh shares at a price range of ₹52 to ₹55 per share, raising a total of ₹25.25 Crores. The subscription period closes on January 2, 2025, with allotment finalized on January 3, 2025. The shares will be listed on the BSE SME, with a tentative listing date of January 7, 2025.

Overview of Technichem Organics

Technichem Organics is engaged in the manufacturing and exporting of chemical intermediates since 1996. The company produces Pyrazoles, Pyrazolones, Speciality Chemicals, Pigment & Dye Intermediates, and Air Oxidation Chemistry that cater to diverse industries, including pharmaceuticals, agriculture, coatings, pigments, dyes, and others.

Subscription and Investment Details

The Technichem Organics IPO offers shares in the price range of ₹52 to ₹55 per share. The market capitalization at the higher end of the price band is estimated to be ₹95.26 Crore. The lot size is set at 2,000 shares, with a minimum investment of ₹1,10,000 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (4,000 shares), totaling ₹2,20,000.

Subscription Status and Allotment

As of January 2, 2025, the Technichem Organics IPO was subscribed 392.62 times on its final day of subscription. The IPO allotment will be available on January 3, 2025. Investors can easily check the status by visiting the registrar’s website.

Objectives of Technichem Organics IPO

The net proceeds from the IPO will be utilized for the following objectives:

1. ₹703.82 Lakh for funding the capital expenditure requirements for the new plant, “Plant-4”.
2. ₹1,023.51 Lakh for the repayment or prepayment of certain borrowings availed by the company.
3. General corporate purposes.

Financial Performance and Valuation

Technichem Organics has shown steady growth in its financials, with revenues of ₹5,101.97 Lakh in FY2023 and a Profit After Tax (PAT) of ₹472.68 Lakh in FY2024. The EBITDA for FY2024 stood at ₹1,010.61 Lakh. The pre-issue EPS is ₹3.71, and the post-issue EPS is ₹2.73. The company’s P/E ratio of 14.82x (pre-issue) and 20.15x (post-issue) is lower than the industry P/E ratio of 93.50x, suggesting that the IPO is fairly priced.

Technichem Organics IPO Review

Based on the financial performance and valuation, the Technichem Organics IPO is reasonably priced. The Grey Market Premium (GMP) of ₹14, representing a potential 25.45% listing gain, is attractive for risky investors. Given the company’s performance and industry position in chemical manufacturing, it is a good opportunity for investors looking for potential listing gains, though the investment is considered risky.

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The Current active IPO is  Indo Farm, Technichem Organics, Leo Dry Fruits, Davin Sons, and Parmeshwar Metal.

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