Technichem Organics Limited is engaged in the business of manufacturing a various range of chemicals, Speciality Chemicals, Pigment & Dye Intermediates and Air Oxidation Chemistry. Technichem Organics IPO is set to garner of Rs 25.25 crores. The issue is entirely a fresh issue of shares.
IPO opens
December 31, 2024
IPO Closes
January 2, 2025
IPO Size (Rs.)
₹25.25 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹52 to ₹55 per share
Minimum Lot
2,000 Shares
Listing At
BSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Shreni Shares Limited.
Registrar
Bigshare Services Pvt Ltd
Market maker
Shreni Shares Limited.
About: Technichem Organics IPO
Technichem Organics Limited is into the manufacturing of a diverse range of specialty chemicals, including Pyrazoles, Pyrazolones, Pigment and Dye Intermediates, and Air Oxidation Chemistr hat serves multiple industries.
The company has an annual manufacturing capacity of 950,000 kg.
They operate three plants at its facility, located at Khambhat-Golana Road, District – Anand, Gujarat – 388620, Gujarat, India.
The company has a global presence, operating in approximately 11 countries, with significant exports directed to China.
Mr. Bharat Jayantilal Pandya and Mr. Pandya Anilkumar Jayantilal are the promoters of the company.
Financials: Technichem Organics
Particulars/ Rs. Lacs
3m FY25
2024
2023
2022
Total Revenue
1,487.89
4,696.84
5,101.97
6,778.63
Profit after Tax
140.46
472.68
172.93
342.06
Share Capital
1,273.13
254.63
254.63
254.63
Net worth
2,102.50
1,962.04
1,489.36
1,316.43
Net Asset Value (₹)
16.51
15.41
11.7
11.46
Total borrowings
1,658.31
1,763.94
1,562.15
1,017.26
Post issue Share Capital
1732
FV
10.0
IPO price
55.0
EPS Fy24
2.7
PE
20.2
EPS Fy25 (annualized)
3.2
PE (annualized)
17.0
Market cap in cr.
9,526
Market cap / Sales
2.03
Anchors
Technichem Organics IPO: Salient Points
India’s chemical industry, projected to grow from US$ 220 billion in 2022 to US$ 300 billion by 2025.
Use of Net proceeds:
Sr. No
Particulars
Amount
1.
Funding of capital expenditure requirements of our Company towards setting up of a new plant named as “Plant –4”
703.82
2.
Repayment or prepayment, in full or in part, of certain borrowings availed by our Company from banks, financial institutions and non-banking financial companies
1,023.51
3.
General corporate purposes
[●]
They have a well-equipped R & D facility capable of carrying out most of the “Unit Processes” such as Sulfonation, Nitration, Halogenations, Esterification, Friedle-Craft reactions, Grignard reactions, Suzuki-coupling, Amination, Condensations hydrogenation etc. and majority of “Unit operations”.
Export Revenue is 38.14% of total revenue.
Product Bifurcation
3mFY25
FY24
FY23
Rs.Lacs
Revenue
%
Revenue
%
Revenue
%
Manufacturing of own specialty chemicals & Intermediaries
1,227.00
83.48%
4,240.20
91.40%
4,798.41
95.29
Custom manufacturing
242.77
16.52%
135.24
2.92%
237.38
4.71%
contract manufacturing/exclusi ve manufacturing
Nil
Nil
263.67
5.68%
Nil
Nil
Total
1469.77
100
4639.11
100%
5035.79
100%
Technichem Organics has a global presence, operating in around 11 countries.
Peers:
Company/ Rs. Lacs
Revenue
EBITDA
EBITDA%
PAT
NPM %)
PE
ROE
Debt /Equity
Mcap/sales
Technichem
4,639.11
952.88
20.54%
472.68
10.19%
20.2 (17)
27.39%
0.9
2.03
Ami Organics
68,758.29
10,766.54
15.66%
4,368.49
6.35%
91.70
6.92%
0.3
10.5
Anupam Rasayan
1,12,870.00
30,700.90
27.20%
11,729.30
10.39%
114
4.60%
0.37
6.39
Chemcrux
7,846.53
1,321.36
16.84%
910.7
11.61%
35
13.14%
0.35
3.37
PE FY25 (annualized) 17x ; PE Fy24: 20.2x
I intend to apply in Technichem Organics IPO. Valuation look OK. Two third of the exports are to China. Difficult to judge so only a candidate for listing gains.
GMP as reported on social media is around Rs. 15 (27%)
Lead Manager Shreni Shares Limited.is market maker as well and has fair record in both of these segments.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
