The Issue includes a fresh Issue of up to 18,00,000 Equity Shares of the Company. The company intends to use the funds raised to meet its working capital requirement and to purchase vehicles to improve its transportation.
Citichem India Ltd IPO – Important Details
| Citichem India IPO Date | NA |
| Citichem India IPO Listing Date | NA |
| Citichem India IPO Price | NA |
| Citichem India IPO Lot Size | NA |
| Citichem India IPO Total Issue Size | NA |
| Citichem India IPO Basis of Allotment | NA |
| Citichem India IPO Initiation of Refunds | NA |
| Citichem India IPO Credit of Shares to Demat | NA |
| Citichem India IPO Issue Type | Fixed Price Issue |
| Citichem India IPO Listing At | BSE SME |
Citichem India Ltd IPO – Company Profile
Citichem India Limited is mainly engaged in the buying, procuring, and supplying of organic and inorganic chemicals, bulk drugs, and food chemicals to the pharmaceutical industry. The traded specialty chemicals and intermediates have a wide application in aluminum, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food, and adhesive Industry.
With the combined experience of its Promoters for over 25 years with their expertise in sourcing, negotiating, procuring, and supplying organic and inorganic chemicals to the pharmaceutical industry, and with the existing long-standing clientele, the Company aims to expand further, and diversify its procurement sources and achieve growth by multiplying the supply chain of the chemicals to the said industry.
Citichem India Ltd IPO – Fundamental Analysis
Revenue Growth:
Citichem India Ltd has experienced fluctuating revenue over the past three years. Revenue was ₹18,016.73 lakhs in 2021, but it significantly dropped to ₹8,521.64 lakhs in 2022 and further to ₹1,236.85 lakhs in December 2022.
Profitability:
The company’s profitability, measured by profit after tax, has been inconsistent. It was ₹21.96 lakhs in 2021, increased to ₹23.93 lakhs in 2022, and significantly improved to ₹35.56 lakhs in December 2022.
Return on Net Worth (RoNW):
RoNW has shown variability. It was 5.81% in 2021, dropped to 4.15% in 2022, and spiked to 36.68% in December 2022.
Earnings Per Share (EPS):
Diluted EPS has experienced substantial fluctuations, declining from ₹32.29 in 2021 to ₹2.14 in 2022 and further to ₹0.79 in December 2022.
Net Asset Value (NAV) per Equity Share:
NAV per equity share has increased moderately from ₹91 in 2021 to ₹11.54 in 2022 and ₹12.25 in December 2022.
Asset and Liability Management:
Total assets have grown from ₹7,321.54 lakhs in 2021 to ₹8,408.70 lakhs in December 2022, indicating an expanding asset base. Liabilities have also increased, reflecting a balance between assets and liabilities.
Summary:
Citichem India Ltd has experienced significant revenue fluctuations, and while profitability improved in December 2022, EPS saw a substantial decline. RoNW exhibited sharp variations. Investors should carefully evaluate the company’s financial stability and future growth prospects before considering this IPO.
Citichem India Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 December 2022 |
| Revenue (₹ in lakhs) | 18,016.73 | 8,521.64 | 1,236.85 |
| Equity (₹ in lakhs) | 59.86 | 576.98 | 612.54 |
| Expenses (₹ in Million) | 17,998.46 | 8,495.82 | 1,188.80 |
| Profit and Loss After Tax (₹ in Million) | 21.96 | 23.93 | 35.56 |
| RoNW (%) | 5.81% | 4.15% | 36.68% |
| Diluted EPS only (₹) | 32.29 | 2.14 | 0.79 |
| NAV per Equity Share (₹) | 91 | 11.54 | 12.25 |
| Total Assets (in lakhs) | 7,321.54 | 9,142.68 | 8,408.70 |
| Total Liabilities (in lakhs) | 7,261.68 | 8,565.70 | 7,796.16 |
Citichem India Ltd IPO Peer Comparison
Citichem India Limited reports lower revenue income at ₹85.22 crore with a modest RoNW of 4.15%. Shankar Lal Rampal Dye-Chem Limited shows stronger profitability with a P/E of 13.08 and a RoNW of 36%. Vinyl Chemicals Limited exhibits high revenue and robust RoNW at 51.90%.
| Company | Revenue Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Citichem India Limited | 8521.64 | 10 | NA | 2.14 | 2.14 | 4.15% | 11.54 |
| Shankar Lal Rampal Dye-Chem Limited | 30,332.59 | 10 | 13.08 | 12.69 | 12.69 | 36% | 36 |
| Vinyl Chemicals Limited | 86,507.15 | 1 | 13.78 | 19.01 | 19.01 | 51.90% | 52.36 |
Citichem India Ltd IPO Objective
Citichem India Limited’s IPO aims to raise funds for two primary objectives: funding the working capital requirements of the company and purchasing transportation vehicles and accessories to support its business operations.
- Funding working capital requirement: The company’s business is working capital intensive. The company plans to utilize a portion of the net proceeds of the company to meet the working capital requirement of the company.
- Purchase of Transportation Vehicles and Accessories: For the smooth functioning of the business, the company intends to purchase transportation vehicles and accessories. The company plans to utilize INR 4.38 crores towards the purchase.
Citichem India Ltd IPO Risks And Challenges
Citichem India Limited’s IPO faces significant risks and challenges, including pending litigation involving approximately INR 190 crores and a history of negative operating cash flows that could impact its financial condition and operations.
- Pending litigation: Various cases are pending against or by the company, directors, promoters, or group company. The amount involved is approximately INR 190 crores. Any adverse outcome in such proceedings may hurt our reputation, business, financial condition, results of operations, and cash flows.
- Negative operating cash flows: The company has had negative cash flows in the past. Sustained negative cash flow could adversely impact our business, financial condition, and results of operations.
Citichem India Ltd IPO – Industry & Market Potential
Covering over 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers.
Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan, and China. India accounts for ~16% of the world’s production of dyestuffs and dye intermediates. Indian colorant industry has emerged as a key player with a global market share of ~15%. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at a global level.
The domestic chemicals sector’s small and medium enterprises are expected to showcase 18-23% revenue growth in FY22, owing to an improvement in domestic demand and higher realization due to high prices of chemicals.
An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. The specialty chemicals constitute 22% of the total chemicals and petrochemicals market in India. The demand for specialty chemicals is expected to rise at a 12% CAGR in 2019-22
Citichem India Ltd IPO – Type of Offer
The company will issue 18,00,000 new shares to raise capital. This fund will be used to improve the transportation network by purchasing vehicles and also fund the future working capital requirement.
Citichem India Ltd IPO Offer Size
The Issue includes a fresh Issue of up to 18,00,000 Equity Shares of the Company. The price details are not yet announced by the company.
Citichem India Ltd IPO Allotment Structure
Citichem India Limited’s IPO allotment structure includes categories for retail individual investors (RII), non-RIIs with application values exceeding INR 2 lakhs, and a reservation for market makers, with specific details pending announcement.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The details of the same is not yet announced by the company.
How to apply for a Citichem India IPO through Alice Blue?
To apply for the Citichem India IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Citichem India IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Citichem India IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Citichem India IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Citichem India IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Citichem India IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Citichem India IPO:
- Registrar’s Website: Visit the website of KFIN Technologies Limited, the registrar of the Citichem India IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Citichem India Ltd IPO Offer Registrar
The registrar for the Citichem India Limited IPO is KFIN Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN Technologies Limited
Selenium, Tower-B, Plot 31& 32,
Gachibowli Financial District
Nanakramguda, Hyderabad – 500032,
Telangana, India
Telephone: +91-40-6716-2222
Email: [email protected]
Website: www.kfintech.com
Citichem India Ltd IPO FAQs
The allotment date has not yet been announced by the company.
The price band has not yet been announced by the company.
The Issue includes a fresh Issue of up to 18,00,000 Equity Shares of the Company. The company intends to use the funds raised to meet its working capital requirement and to purchase vehicles to improve its transportation.
The listing date has not yet been announced by the company.
