Citichem India IPO: Key Details and Investor Insights

The Citichem India Ltd IPO opened to an overwhelming response on Friday, December 27, 2024, with the issue fully subscribed within hours of its launch. The IPO, listed on the BSE SME platform, has garnered significant interest, particularly among retail investors. Here’s everything you need to know about the IPO.

IPO Subscription Overview

The IPO was subscribed 16.5 times by 1:45 PM on the first day, reflecting strong demand. It received bids for 2.82 crore shares against an offer of 17.08 lakh shares.

• Retail Quota: Subscribed 28.13 times, with bids for over 2.4 crore shares against 8.54 lakh shares on offer.
• Non-Institutional Investors (NIIs): Subscribed 4.87 times, receiving bids for 41.62 lakh shares compared to the allocated 8.54 lakh shares.

Key Details of the IPO

Price Band and Lot Size

• Price Per Share: ₹70
• Minimum Lot Size: 2,000 shares
• Minimum Investment for Retail Investors: ₹1,40,000 (one lot)
• Minimum Investment for High-Net-Worth Individuals: ₹2,80,000

Issue Structure

• Fresh Issue: Entirely a fresh issue of 18 lakh shares, raising ₹12.6 crore.
• No Offer-for-Sale (OFS) component.

IPO Dates

• Subscription Close: Tuesday, December 31, 2024
• Allotment Finalisation: Wednesday, January 1, 2025
• Refunds Issued: Thursday, January 2, 2025
• Shares Credited to Demat Accounts: Thursday, January 2, 2025
• Listing Date: Friday, January 3, 2025

IPO Managers

• Lead Manager: Horizon Management Private Ltd
• Registrar: Kfin Technologies Ltd
• Market Maker: Aftertrade Broking Private Ltd

About Citichem India Ltd

Business Overview

Citichem India specializes in the procurement and supply of chemicals catering to industries such as pharmaceuticals, aluminium, steel, paper, textiles, paints, adhesives, and more. Their portfolio includes inorganic and organic chemicals, food chemicals, and bulk drugs.

Use of Proceeds

The funds raised will be allocated for:

1. Capital expenditure, including property acquisition.
2. Purchase of transportation vehicles and accessories.
3. General corporate purposes.
4. Issue-related expenses.

Financial Performance

• Revenue FY24: ₹19.6 crore, down 6.3% from ₹20.94 crore in FY23.
• Profit After Tax (PAT) FY24: ₹1.11 crore, a surge of 208.3% from ₹36 lakh in FY23.
• Current FY Performance (till June 2, 2024): Revenue of ₹1.09 crore and PAT of ₹19 lakh.

Investor Insights

Citichem India’s IPO has generated considerable excitement among retail and NII investors, reflecting confidence in its growth potential despite a slight dip in revenue. With its focus on specialty chemicals and plans for expansion, the company appears poised for further growth.

Investors should, however, evaluate the financials and long-term growth prospects before subscribing. The strong retail demand and planned listing on the BSE SME platform indicate a promising debut.