Technichem Organics is coming up with an IPO offering 45,90,000 fresh equity shares of the company, aggregating to INR 25.25 crores. The company intends to use the funds raised to set up a new plant named “Plant 4”, repay the existing loans and borrowings and for general corporate purposes.

Technichem Organics IPO – Important Dates

Read more about Technichem Organics Limited IPO GMP

Technichem Organics Limited IPO – Company Profile

Technichem Organics is mainly engaged in the business of manufacturing a wide range of chemicals, Pyrazoles, Pyrazolones, Speciality Chemicals, Pigment & Dye Intermediates and Air Oxidation Chemistry that serves multiple industries, including pharmaceuticals, agriculture, coatings, pigments, dyes and others. 

The Company boasts a global presence, operating in around 11 countries. This extensive international footprint gives them a broad perspective on market dynamics, enabling them to make informed decisions and better judge market trends. A significant portion of its exports is directed to China, highlighting the exceptional capabilities of its R&D team in synthesising molecules cost-effectively. 

They have a manufacturing capacity of 9,50,000 kg per annum as of the date of the Red Herring Prospectus, and they have three plants at the factory. The factory area is spread out over 26,079 square meters.

Technichem Organics Ltd IPO Fundamental Analysis 

1. Revenue: The company’s revenue declined by 7.9% in FY2024, signalling challenges in maintaining sales growth. Annualizing Q1 FY2025 revenue suggests a possible recovery if the growth is sustained in subsequent quarters. 

2. Equity and Liabilities: Equity has grown steadily, reflecting retained earnings and strengthening of the capital base. The growth indicates an improvement in the company’s financial stability. Liabilities have increased, but the debt-equity ratio remains on a downward trend, reflecting better management of leverage.

3. Profitability: While FY2024 profitability is impressive, Q1 FY2025 performance requires careful monitoring.

4. Return on Net Worth (RoNW): The RONW has more than doubled in FY2024, reflecting improved utilisation of equity.

5. Earnings Per Share (EPS): The FY2024 EPS growth is strong, but the Q1 FY2025 trend indicates potential headwinds.

6. Asset management: The increase in total assets indicates expansion and potential investment in operations, supporting future growth. 

Technichem Organics IPO Financial Analysis

Technichem Organics Limited IPO Peer Comparison

Technichem Organics Ltd reports a strong RoNW of 24.09% and ₹15.41 NAV per share. Ami Organics excels with ₹183.05 NAV but has a high P/E of 178.25. Anupam Rasayan balances with ₹249.26 NAV and a 4.29% RoNW, while Chemcrux Enterprises shows moderate metrics with a P/E of 32.60 and a 12.60% RoNW.

Technichem Organics Ltd IPO Objective

Technichem Organics plans to allocate INR 7.03 crores to establish a new plant, INR 10.23 crores to repay borrowings, and balance funds for general corporate purposes, enhancing R&D, manufacturing, and distribution.

1. Set up a new plant- ‘Plant 4’: To meet the escalating demand in the chemical industry, the company intends to establish a new manufacturing facility named Plant-4 for the new formulations, which will increase the present capacity and subsequently boost sales and profitability. The company plans to utilise INR 7.03 crores for the said purpose. 

2. To repay the existing borrowings: The outstanding loan facilities entered into by the Company include borrowing in the form of a Loan against both movable and immovable property of the Company, against personal properties of its promoters cum directors and personal guarantees of them. The company proposes to utilise an estimated amount of INR 10.23 crores from the net proceeds towards part or full repayment and/or pre-payment of borrowings availed by them.

3. General corporate purposes:  The company will deploy funds for general corporate purposes and target synergies benefiting from management expertise, R&D, manufacturing, and distribution network.

 Technichem Organics IPO Risks And Challenges

Technichem Organics has experienced negative cash flows in past years, which could hinder growth if sustained. A significant portion of revenue depends on Pharma chemicals, pigments, and speciality chemicals, making demand fluctuations a key business risk.

1. The company has had negative cash flows in the past few years. Sustained negative cash flow could impact the growth and business.

2. A significant proportion of the revenues are derived from Pharma chemicals, High-Performance Pigment and Speciality chemicals, Specialty Chemicals, and Coating chemicals, and any reduction in the demand for such products could have an adverse effect on the business, results of operations and financial condition.

Technichem Organics Ltd IPO – Industry & Market Potential

Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, speciality chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. 

India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India’s chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. 

India’s chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 383 billion to India’s GDP by 2030. 

Technichem Organics Limited IPO – Type of Offer

Technichem Organics is launching an IPO of 45,90,000 fresh equity shares worth INR 25.25 crores. The funds will be utilised for setting up “Plant 4,” repaying loans, and general corporate purposes.

Technichem Organics IPO Offer Size

The offer size is INR 25.25 crores, comprising 45,90,000 fresh equity shares. Technichem Organics plans to use the proceeds to set up a new facility, “Plant 4,” repay loans, and for general corporate purposes.

Technichem Organics Limited IPO Allotment Structure

Technichem Organics Limited allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 2,52,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 2,52,000 shares, are reserved for market makers.

Read more about Technichem Organics IPO Allotment Status

How to apply for the Technichem Organics IPO?

To apply for the Technichem Organics 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.

1. Check for IPO Details: Once your account is active, you can check for the Technichem Organics IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for Technichem Organics IPO at Alice Blue in just a few clicks!

Check Allotment Status: After 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 Technichem Organics IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. 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.
3. 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.
4. Select the Technichem Organics 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 Technichem Organics IPO.
5. 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, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Technichem Organics IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Technichem Organics IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, 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.

Technichem Organics Ltd IPO Offer Registrar

The registrar for the Technichem Organics Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Bigshare Services Private Limited

Office No. S6-2, 6th Floor, 

Pinnacle Business Park,

Next to Ahura Centre, Mahakali CavesRoad, 

Andheri East, Mumbai – 400 093, Maharashtra, India 

Tel: 022 – 6263 8200

E-mail: [email protected] 

Website: www.bigshareonline.com

Technichem Organics Ltd IPO FAQs