Citichem India IPO itemizing: Citichem India shares made a totally flat debut on Friday, January 3, itemizing at ₹70 on BSE SME, identical because the IPO value.
Citichem India’s preliminary public providing (IPO), valued at ₹12.60 crore, was open for subscription from December 27 to December 31. The Citichem India’s IPO value band stood at ₹70 per fairness share.
Following the three days of bidding, Citichem India IPO closed with exemplary demand, garnering 414.35 instances bids. The IPO acquired bids for 70.77 crore shares in opposition to 17.08 lakh shares on provide. The retail investor section was booked 543.18 instances, whereas the non-institutional buyers (NII) class was subscribed 277.88 instances.
Concerning the IPO
Citichem India IPO was fully a recent situation of 18 lakh shares aggregating to ₹12.6 crore. Submit the problem, promoter shareholding within the firm will scale back to 61.21 p.c from 83.25 p.c earlier than the IPO. Retail buyers might apply with a minimal lot measurement of two,000 shares, requiring a minimal funding of ₹1.4 lakh.
The corporate plans to allocate the online proceeds from the recent situation towards a number of strategic targets. These embody funding capital expenditures for buying property, buying transportation autos and equipment, and addressing common company functions. Moreover, a portion of the proceeds will likely be used to cowl bills associated to the problem.
“The corporate is principally engaged in supplying third celebration merchandise in natural/inorganic chemical compounds, bulk medication, meals chemical compounds, Prescribed drugs, and many others. It marked drastic de-growth in its prime strains for the reported intervals, however internet margin surged from FY24 onwards that increase eyebrows and concern over its sustainability going ahead as it’s working in a extremely aggressive and fragmented section. Increased spending for IPO course of hints at structured and managed funding. Small fairness base post-IPO signifies longer gestation for migration. Primarily based on its current tremendous earnings, the problem seems aggressively priced. There isn’t a hurt in skipping this “Excessive Danger/Low Return” wager,” mentioned Dilip Davda of Chittorgarh.com, recommending an keep away from ranking for the problem.
Horizon Administration Personal Restricted is the e-book working lead supervisor of the Citichem India IPO, whereas Kfin Applied sciences Restricted is the registrar for the problem.The market maker for Citichem India IPO is Aftertrade Broking Pvt Ltd.
Concerning the Firm
Established in 1992, Citichem India Restricted operates as a provider of natural and inorganic chemical compounds, bulk medication, and meals chemical compounds, primarily catering to the pharmaceutical sector. The corporate emphasizes direct provide of specialty chemical compounds, bulk medication, and intermediate merchandise tailor-made to business necessities.
Citichem India trades a various vary of specialty chemical compounds and intermediates that discover purposes throughout numerous sectors, together with aluminum, metal, textiles, paper, dairy, paints, dyes, cleaning soap making, prescribed drugs, meals, and adhesives. Its portfolio additionally contains meals preservatives and chemical compounds marketed underneath its personal model, that are distributed by means of a longtime community, making certain the protected supply of bulk orders to shoppers.
In its monetary efficiency, Citichem India reported a 6 p.c decline in income for the fiscal 12 months ending March 31, 2024, in comparison with the earlier 12 months. Nonetheless, the corporate showcased a exceptional 208 p.c year-on-year surge in revenue after tax (PAT) throughout the identical interval, reflecting improved profitability regardless of income contraction.
