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Technichem Organics IPO: Things Smart Investors Need to Know

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Technichem Organics Limited is a renowned chemical manufacturing company with a strong market presence in the specialty chemicals and intermediates sector. Established in 1996, the company offers products that cater to diverse industries, including pharmaceuticals, agrochemicals, coatings, dyes, and pigments. Its core strength lies in delivering high-quality, custom-made chemical solutions through advanced manufacturing techniques. The company operates across 11 countries, with a significant export base in China, and boasts an annual manufacturing capacity of 950,000 kg.

With a robust R&D foundation and a focus on sustainable practices, Technichem Organics positions itself as a leader in quality and innovation. Its long-standing relationships with clients across geographies and sectors further strengthen its market position.

For more details, visit the official Technichem Organics IPO page.

Technichem Organics IPO Details and Objectives

IPO Details

Particulars

Details

IPO Date

December 31, 2024 - January 2, 2025

Issue Type

Book Built Issue IPO

Price Band

₹52 to ₹55 per share

Lot Size

2,000 shares

Total Issue Size

₹25.25 crores (45.90 lakh shares)

Listing At

BSE SME

Purpose of the IPO

  • Funding capital expenditure for a new plant.
  • Repayment or prepayment of certain borrowings.
  • General corporate purposes.

Timeline of Technichem Organics IPO

Event

Date

IPO Open Date

December 31, 2024

IPO Close Date

January 2, 2025

Basis of Allotment

January 3, 2025

Initiation of Refunds

January 6, 2025

Credit of Shares

January 6, 2025

Listing Date

January 7, 2025

Pricing & Lot Size of Technichem Organics IPO

Price Band for the IPO

  • Set at ₹52 to ₹55 per share.

Minimum Lot Size and Application Details

  • Minimum application size: 2,000 shares.
  • Investment required for retail investors: ₹1,10,000.
  • HNI minimum lot size: 4,000 shares (2 lots).

How to Apply for the Technichem Organics IPO?

Online Application Process

  • Log in to Your Trading Account

    Access your trading account through the web platform or mobile app.

  • Navigate to the IPO Section

    Go to the IPO section to view ongoing public issues.

  • Select the Technichem Organics IPO

    Locate "Technichem Organics IPO" and click the ‘Apply’ button.

  • Enter Application Details

    Choose the number of lots (minimum lot size: 2,000 shares).

    Set your bid price within the ₹52 to ₹55 per share price band.

  • Provide Your UPI ID

    Enter your UPI ID for payment authorization.

    Ensure sufficient funds are available in your linked bank account.

  • Review and Submit

    Verify your application details carefully before submission.

    Approve the UPI mandate before 5 PM on January 2, 2025.

Financial Health and Performance

Key Financial Metrics

  • Total revenue (FY24): ₹4,696.84 lakhs.
  • Profit After Tax (FY24): ₹472.68 lakhs.
  • Assets: ₹5,743.17 lakhs (as of June 30, 2024).

Recent Performance and Growth Prospects

  • Revenue decline by -8% from FY23 to FY24.
  • PAT increased by 173% during the same period.
  • Focus on R&D and operational efficiency ensures long-term growth.

Investment Risks and Opportunities

Potential Risks of Investing in the IPO

  • Revenue decline in recent fiscal years.
  • Dependency on specific geographies for exports.
  • Market volatility and competition in specialty chemicals.

Opportunities and Growth Potential

  • Expansion with a new plant to boost production.
  • Global presence in 11 countries ensures market diversification.
  • Growing demand for specialty chemicals in pharmaceuticals and agrochemicals.

Key Performance Indicator (KPI)

KPI

Values

ROE

27.39%

ROCE

22.57%

Debt/Equity

0.90

PAT Margin

10.19%

P/E (Post IPO)

20.15

Technichem Organics IPO Registrar & Lead Managers

Registrar

Bigshare Services Pvt Ltd

Lead Manager

Shreni Shares Limited

Company Address of Technichem Organics Ltd

  • Address: 5th Floor, Malak Complex, Behind Old Gujarat High Court, Navrangpura, Ahmedabad 380009.
  • Phone: 079-27543722.
  • Email: investors@technichemorganics.com.
  • Website: www.technichemorganics.com.

Conclusion

The Technichem Organics IPO provides an opportunity for investors to participate in a company with a diverse product portfolio and presence across multiple industries. The IPO proceeds are aimed at supporting the company's expansion plans and improving financial flexibility, which may enhance its operational capacity. Investors are encouraged to review the company's financials, objectives of the IPO, and market position thoroughly before making any investment decisions.

 Interested in more opportunities? Check out our Upcoming IPO section for new listings and don’t forget to check your IPO allotment status for Technichem Organics IPO.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

Who is the CEO of Technichem Organics Ltd?

Answer Field

The CEO of Technichem Organics Ltd. is yet to be disclosed publicly in the IPO document. Stay tuned to the Technichem Organics IPO page for updates.

When will the Technichem Organics IPO open for subscription?

Answer Field

The Technichem Organics IPO will open for subscription on December 31, 2024, and close on January 2, 2025.

What is the company’s core business, and how sustainable is its business model in the long term?

Answer Field

Technichem Organics specializes in manufacturing specialty chemicals and intermediates, serving industries like pharmaceuticals, agrochemicals, and coatings. The business model emphasizes sustainability through in-house manufacturing and a focus on quality, environment, and safety.

What is the issue size of the Technichem Organics IPO?

Answer Field

The total issue size of the Technichem Organics IPO is ₹25.25 crores, comprising a fresh issue of 45.90 lakh shares.

What is pre-apply for the Technichem Organics IPO?

Answer Field

'Pre-apply' allows investors to submit their IPO application in advance through eligible trading platforms, ensuring timely participation once the IPO opens.

When will I know if my Technichem Organics IPO order is placed?

Answer Field

You will receive a confirmation once your application is successfully submitted and your UPI mandate is approved for the Technichem Organics IPO.

What is the lot size and minimum order quantity of the Technichem Organics IPO?

Answer Field

The minimum lot size for the Technichem Organics IPO is 2,000 shares, requiring a minimum investment of ₹1,10,000 for retail investors.

What is the allotment date for the Technichem Organics IPO?

Answer Field

The allotment for the Technichem Organics IPO is expected to be finalized on January 3, 2025.

Who is the registrar of Technichem Organics IPO?

Answer Field

The registrar for the Technichem Organics IPO is Bigshare Services Pvt Ltd. They will manage the allotment and refund processes.

Are there any governance issues or red flags in the company’s leadership or board structure?

Answer Field

As per the RHP, there are no reported governance concerns or red flags in the leadership or board structure of Technichem Organics Ltd. Investors should review the RHP for detailed insights.

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