A BSE SME issue, Technichem Organics IPO is set to open its three-days bidding window on December 31, 2024 with a price band set between Rs 52 to Rs 55 per share. The IPO is scheduled to close its subscription window on January 2, 2025.
Here is everything you need to know about the Technichem Organics IPO before investing.
IPO Details: What’s on Offer?
Technichem Organics IPO will feature a fresh issue of 45,90,000 equity shares, amounting to a sum of Rs 25.25 crore. Furthermore, it is also important to note that in this SME issue, there is no offer for sale (OFS) component, meaning the entire issue consists of newly issued shares.
The price band for the issue has been set between RS 52 to Rs 55 per share, each with a face value of Rs 10. Interested investors can bid for a minimum of 2,000 shares, and bids can only be placed in multiples of 2,000 thereafter.
Investment Breakdown
Retail investors will need to invest a minimum of Rs 1,10,000 (for 2,000 shares), while HNI investors must invest for 4,000 shares (Rs 2,20,000).
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Technichem Organics IPO – GMP
Ahead of the IPO opening, the Grey Market Premium (GMP) stands at Rs 11, suggesting a 20 per cent surge from the upper price band of Rs 55. This indicates the expected listing price hovering around Rs 66 per share, as per the latest trend.
Financial Use: Where the Funds Will Go
The funds raised through this IPO will primarily be used for capital expenditure for setting up a new facility, settling outstanding obligations and general corporate purposes.
The Risks: What Investors Should Know
As per the DRHP filed by the company, some of the risk factors noted by the company in the filing include:
“We are highly dependent on certain key customers for a substantial portion of our revenues, and we do not have long-term contracts with all of these customers. Loss of relationship with any of these customers may have a material adverse effect on our profitability and results of operations.”
“We depend on a certain supplier for our raw materials required for our operations, and we do not have long-term agreements with suppliers for our raw materials. An increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on our business, financial condition, and results of operations,” it added.
“We have certain outstanding litigation against us, an adverse outcome of which may adversely affect our business, reputation, and results of operations,” noted the company in the filing.
About the company
Technichem Organics, founded in 1996 is a leading manufacturer of a diverse range of chemicals. These include speciality chemicals, pigment & dye intermediates, and air oxidation chemicals, serving industries like pharmaceuticals, agriculture, coatings, and pigments.
Anchor Investors and Listing
Technichem Organics IPO is being managed by Shreni Shares, which serves as the book-running lead manager for the issue. The registrar, responsible for handling share allocation and other administrative tasks, is Bigshare Services. Additionally, Shreni Shares also takes on the role of the market maker for this IPO.
After the subscription closes, the allotment of shares is scheduled for January 3, 2025, with the listing date on the BSE SME set for January 7, 2025.
