Technichem Organics Ltd. is a leading manufacturer and exporter of intermediates for multiple applications. Founded in 1996, the company specializes in producing chemicals such as Pyrazoles, Pyrazolones, Specialty Chemicals, Pigment & Dye Intermediates, and Air Oxidation Chemistry, which serve a variety of industries, including pharmaceuticals, agriculture, coatings, pigments, dyes, and more. The company is now looking to expand its operations through its IPO, set to raise ₹25.25 crores, with 45.90 lakh shares being offered at a price range of ₹52 to ₹55 per share.

IPO Subscription and Market Premium

As of January 2, 2025, the Technichem Organics IPO has been oversubscribed 63.58 times, reflecting significant investor interest. The Grey Market Premium (GMP) for the IPO is ₹14, which translates to an expected listing gain of 25.45%. However, the GMP should be viewed with caution, as it is not an official indicator of the final listing price and depends on the demand and supply dynamics in the unregulated grey market.

The subscription for the Technichem Organics IPO is open till January 2, 2025. It is expected to be finalized on January 3, with the shares to be listed on BSE SME on January 7, 2025.

Technichem Organics IPO Financials and Valuation

Technichem Organics has shown steady financial growth, with revenues of ₹1,487.89 lakh for the period ending June 30, 2024, and a consistent upward trend in its profits over the past few years. The company's EBITDA for FY24 is ₹272.00 lakh, and the Profit After Tax (PAT) for FY24 is ₹140.46 lakh, demonstrating its strong financial performance. The P/E ratio of 14.82x pre-issue and 20.15x post-issue is relatively attractive when compared to the industry P/E of 93.50x.

IPO Objectives and Utilization of Funds

The company intends to use the funds raised from the IPO for several purposes:

1. To fund the capital expenditure for setting up a new plant, “Plant – 4,” with an estimated requirement of ₹703.82 lakh.
2. To repay or prepay outstanding loans, with ₹1,023.51 lakh allocated for this purpose.
3. For general corporate purposes, enabling further business expansion and growth.

Technichem Organics IPO Allotment Process

The allotment of shares for the Technichem Organics IPO is expected to be finalized on January 3, 2025. Investors can check the status of their allotment by visiting the registrar’s website, entering the application number, PAN, or DP Client ID. To stay updated on the allotment process, investors can visit the Technichem Organics IPO page for the latest details.

For retail investors, the minimum investment requirement is ₹1,10,000, while high-net-worth individuals (HNIs) must invest in a minimum of 2 lots (₹2,20,000). The lot size is 2,000 shares, and investors are required to carefully assess the company's financials and market position before applying.

Why You Should Consider Investing in Technichem Organics IPO

Given the steady growth in revenues and profits, a reasonably attractive valuation, and strong financial metrics, the Technichem Organics IPO offers a promising opportunity for risky investors looking for listing gains. The Grey Market Premium further boosts confidence, but it's important to consider the inherent risks associated with investing in small-cap IPOs.

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

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

For those interested in exploring more IPO opportunities, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

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