Technichem Organics Ltd
Technichem Organics Limited, a prominent player in the specialty chemicals sector, is set to launch its Initial Public Offering (IPO) on December 31, 2024. This offering presents a significant opportunity for investors interested in the chemical manufacturing industry.
Company Overview
Established in 1996, Technichem Organics Limited specializes in manufacturing a diverse range of chemicals, including pyrazoles, pyrazolones, specialty chemicals, pigment and dye intermediates, and air oxidation chemistry products. These products cater to multiple industries such as pharmaceuticals, agriculture, coatings, pigments, and dyes, highlighting the company’s versatile product offerings. With a global presence spanning 11 countries, significant exports are directed to China. The company’s manufacturing facility in Gujarat covers 26,079 square meters and boasts an annual production capacity of 950,000 kg.
IPO Timeline
- IPO Opening Date: December 31, 2024
- IPO Closing Date: January 2, 2025
- Basis of Allotment Finalization: January 3, 2025
- Initiation of Refunds: January 6, 2025
- Credit of Shares to Demat Accounts: January 6, 2025
- Listing Date: January 7, 2025
Price Band and Lot Size
- Price Band: ₹52 to ₹55 per share
- Face Value: ₹10 per share
- Minimum Lot Size: 2,000 shares
- Minimum Investment Amount: ₹110,000
Key Dates
- IPO Opening Date: December 31, 2024
- IPO Closing Date: January 2, 2025
- Allotment Date: January 3, 2025
- Listing Date: January 7, 2025
Financials
The company’s financial performance over the past three years is as follows:
| Financial Year | Revenue (₹ Crores) | Profit After Tax (₹ Crores) |
|---|---|---|
| FY 2022 | 67.79 | 3.42 |
| FY 2023 | 51.02 | 1.73 |
| FY 2024 | 46.97 | 4.73 |
Strengths
- Diverse Product Portfolio: Offers a wide range of chemicals catering to multiple industries, reducing dependence on a single sector.
- Global Presence: Exports to 11 countries, with significant exports to China, enhancing international reach.
- In-House Manufacturing: All products are manufactured in-house, ensuring quality control and customization.
- Experienced Management: Led by a team with extensive industry experience, driving growth and innovation.
Risks
- Market Volatility: Fluctuations in demand across various industries can impact revenue.
- Regulatory Compliance: Subject to stringent environmental and safety regulations, which may affect operations.
- Foreign Exchange Exposure: Significant exports expose the company to currency exchange risks.
IPO Promoter Holding
| Promoter Name | Pre-Issue Holding | Post-Issue Holding |
|---|---|---|
| Mr. Bharat Jayantilal Pandya | 97.64% | 71.77% |
| Mr. Pandya Anilkumar Jayantilal |
IPO Grey Market Premium (GMP)
As of December 26, 2024, the Grey Market Premium for Technichem Organics Limited is ₹11 per share, indicating an estimated listing price of ₹66, which is a 20% premium over the upper price band.
Final Thoughts
Technichem Organics Limited’s upcoming IPO offers investors an opportunity to participate in a company with a diverse product portfolio and a strong global presence. However, potential investors should carefully consider the associated risks, including market volatility and regulatory compliance, before making investment decisions.