Technichem Organics is launching an IPO to raise ₹25.25 crore, entirely through a fresh issue of 45.90 lakh shares. The IPO will open for subscription on December 31, 2024, and close on January 2, 2025. Allotment will be finalised on January 3, 2025, and the shares are expected to list on the BSE SME on January 7, 2025.
The price band for the Technichem Organics IPO is set between ₹52 and ₹55 per share. Retail investors can apply for a minimum lot size of 2,000 shares, requiring an investment of ₹1,10,000. For High Net-Worth Individuals (HNIs), the minimum lot size is 4,000 shares, totaling ₹2,20,000.
Shreni Shares Limited is the book-running lead manager for this IPO, with Bigshare Services Pvt Ltd serving as the registrar. The market maker for this IPO is also Shreni Shares Limited, ensuring liquidity for the shares post-listing.
Investors interested in participating should carefully consider the price band and minimum investment requirements before applying for this public offering.
Industry Outlook
- The Indian manufacturing sector is poised for rapid growth, contributing 16-17% to the country’s GDP pre-pandemic, with expectations to become one of the fastest-growing sectors. The government aims for 25% of the economy’s output to come from manufacturing by 2025.
- India’s chemical industry, projected to grow from US$ 220 billion in 2022 to US$ 300 billion by 2025, offers significant opportunities for Technichem Organics Limited to expand its market share and benefit from increasing demand in both domestic and global markets.
Technichem Organics IPO Objectives
The company will use the proceeds of the issue for the following objects:
- The funds will be used for capital expenditure for setting up a new plant, "Plant – 4."
- A portion of the proceeds will be used to repay or prepay existing borrowings from banks, financial institutions, and non-banking financial companies.
- The remaining funds will be utilised for general corporate purposes.
About Technichem Organics Limited
Technichem Organics Limited is a leading chemical manufacturer specialising in a wide range of products, including pyrazoles, pyrazolones, specialty chemicals, pigment and dye intermediates, and air oxidation chemistry. The company serves multiple industries such as pharmaceuticals, agriculture, coatings, pigments, and dyes. This diverse product portfolio provides stability and resilience, as the company is not dependent on a single market.
With a global presence across 11 countries, Technichem has developed a strong foothold in international markets, particularly in China, where a significant portion of its exports are directed. The company’s R&D capabilities play a key role in delivering cost-effective, high-quality products that maintain competitiveness in the global market. The company's ability to adapt to changing market conditions further enhances its market reach.
The company is ISO 9001:2015 and ISO 14001:2015 certified, ensuring high-quality products across industries. Technichem's manufacturing facility in Gujarat, spanning 26,079 square meters, is equipped with state-of-the-art machinery, and stringent quality control measures are followed throughout the production process. The company’s commitment to environmental sustainability is reflected in its advanced treatment facilities and green technology initiatives.
The company’s expertise in chemical processes and its successful track record of scaling products from development to commercialisation further position it as a key player in the chemical manufacturing sector.
How To Check the Allotment Status of the Technichem Organics IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for an Technichem Organics IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Technichem Organics IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Technichem Organics Limited
Registered office: 5th Floor, Malak Complex, Behind Old Gujarat High Court,
Navrangpura, Ahmedabad – 380009, Gujarat, India.
Phone: : +91-79-27543722
E-mail: investors@technichemorganics.com
Technichem Organics IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the Net Issue |
|
Retail Shares Offered |
Not less than 35% of the Net Issue |
|
NII (HNI) Shares Offered |
Not less than 15% of the Net Issue |
Technichem Organics IPO Lot Size Details
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
2000 |
₹1,10,000 |
|
Retail (Max) |
1 |
2000 |
₹1,10,000 |
|
HNI (Min) |
2 |
4000 |
₹2,20,000 |
Technichem Organics IPO Promoter Holding
The company's Promoters are Mr. Bharat Jayantilal Pandya and Mr. Pandya Anilkumar Jayantilal.
|
Share Holding Pre Issue |
97.64% |
|
Share Holding Post Issue |
71.77% |
Key Performance Indicators for Technichem Organics IPO
As of March 31, 2024, the KPIs of Technichem Organics
|
KPI |
Values |
|
ROE |
27.39% |
|
ROCE |
22.57% |
|
Debt/Equity |
0.90 |
|
RoNW |
24.09% |
|
PAT Margin |
10.19 |
|
Price to Book Value |
3.57 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
P/E (x) |
14.81 |
20.15 |
|
EPS (₹) |
3.71 |
2.73 |
Note: The Pre-IPO EPS is calculated using the pre-issue shareholding as of the date of the Red Herring Prospectus (RHP) and the latest earnings for the fiscal year ending March 31, 2024. The Post-IPO EPS is determined by factoring in the post-issue shareholding along with the annualized earnings for FY 2024, as provided in the RHP.
Technichem Organics IPO Prospectus
Technichem Organics IPO Registrar and Lead Managers
Technichem Organics IPO Lead Managers
Shreni Shares Limited
Registrar for Technichem Organics IPO
Bigshare Services Private Limited
- Contact Number: +91-22-6263 8200
- Email Address: ipo@bigshareonline.com
Website: Technichem Organics IPO Registrar
Financial Performance of Technichem Organics Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 4,639.11 | 5,035.79 |
| Profit After Tax (PAT) (in ₹ lakh) | 472.68 | 172.93 |
| Return on Equity (“RoE”) (%) | 27.39 | 12.33 |
| Debt to Equity Ratio (x) | 0.90 | 1.05 |
| Current Ratio (x) | 1.06 | 0.68 |
| EBITDA (in ₹ lakh) | 952.88 | 435.78 |
| Earning Per Share (EPS)-in absolute ₹ | 3.71 | 1.36 |
Know before investing
Strengths
6Diverse product portfolio enables catering to multiple industries and markets.
Versatile facilities with 9,50,000 kg annual capacity for flexibility.
Integrated infrastructure supports cost efficiency and independent production processes.
Advanced R&D drives product innovation and cost-effective manufacturing.
Robust supply chain ensures timely delivery and customer satisfaction.
Strong domestic and global presence with sales in 11 countries.
Risks
6High reliance on top customers, contributing 47.67% to 36.19% revenue.
Absence of long-term contracts with key customers risks revenue stability.
Dependence on a single supplier for raw materials increases supply chain risks.
Lack of patents may expose proprietary processes to competitive replication.
Operational risks in manufacturing facilities, including equipment breakdowns.
Failure in R&D efforts may hamper cost efficiency and product innovation.
Technichem Organics Limited Peer Comparison
| Company Name | Debt to Equity (x) | Profit After Tax (PAT) (in ₹ lakh) | RoE (%) | Current Ratio (x) |
|---|---|---|---|---|
| Technichem Organics Limited | 0.90 | 472.68 | 27.39% | 1.06 |
| Ami Organics Limited | 0.30 | 4,368.49 | 6.92% | 1.76 |
| Anupam Rasayan India Limited | 0.37 | 11,729.30 | 4.60% | 1.61 |
| Chemcrux Enterprises Limited | 0.35 | 910.70 | 13.14% | 3.88 |
