Technichem Organics IPO Subscribed Over 400 Times On Final Day; Check GMP, Subscription Status And More

Technichem Organics Ltd., a company engaged in the business of manufacturing chemicals, launched its initial public offering on Dec. 31. The SME IPO was fully booked on Tuesday and was subscribed over 38 times on Wednesday.

On its final day, Technichem Organics IPO has been subscribed over 400 times so far on Thursday.

The public issue of Technichem Organics was among the last IPOs to open for subscription in 2024, a year which saw stellar market debuts for various companies. The BSE SME issue aims to mop up Rs 25.25 crore from the market by issuing 45.9 lakh shares.

Here's all you need to know about Technichem Organics IPO.

A book-built issue, Technichem Organics IPO is an entirely fresh issuance of shares with no offer-for-sale component.

The IPO price band has been set in the range of Rs 52 to 55 at a face value of Rs 10 per share. Retail investors may bid in Technichem Organics IPO with a minimum lot size of 2,000 shares, resulting in an investment of Rs 1,10,000 at the upper price band.

As per the company's prospectus, of the 45,90,000 shares offered -- 8,68,000 (18.91%) is reserved for Qualified Institutions, 6,52,000 (14.2%) to Non-Institutional Buyers, 15,20,000 (33.12%) for Retail Investors and 12,98,000 (28.28%) for Anchor investors.

The chemical manufacturing company has appointed Shreni Shares Ltd. as the sole book-running lead manager and the market maker for the issue. Bigshare Services Pvt. is Technichem Organics IPO registrar.

The Technichem Organics IPO has been subscribed 425.08 times as of 5:24 p.m. on Thursday, as per Chittorgarh.

• Qualified Institutions: 101.49 times

• Non-Institutional Buyers: 1,078.89 times

• Retail Investors: 329.43 times

The subscription status will be updated at regular intervals.

The grey market premium of Technichem Organics IPO was Rs 15 as of 3:27 p.m. on Jan. 2. This implies a listing gain of 27.27% over the issue price. As per InvestorsGain, shares of Technichem Organics are likely to list at Rs 70 apiece on BSE SME if the current trends are sustained.

The GMP climbed from Rs 11 to Rs 15 as the SME issue got fully subscribed on Day 1.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Technichem Organics Ltd. is a manufacturer of a wide range of chemicals including speciality chemicals, pigment and dye intermediates, and air oxidation chemistry.

Its clientele includes companies operating in various industries including pharmaceuticals, agriculture, coatings, pigments and dyes.

Technichem Organics Ltd. has an annual production capacity of over 9.5 lakh kgs from three manufacturing units.

Technichem Organics Ltd., in its red herring prospectus, has proposed to use the net proceeds from the IPO to fund its capex towards the setting up of a new plant and settling debts. A part of the proceeds will also be used towards general corporate purposes.

Technichem Organics Ltd. posted a revenue of Rs 14.87 crore in the first quarter of the ongoing financial year with a net profit of Rs 1.4 crore. In FY24, the company's revenue slipped over 8% to Rs 46.96 crore from Rs 51.01 crore in the previous fiscal. Despite the drop in revenue, Technichem Organics’ profit jumped 173% to Rs 4.72 crore in FY24 from Rs 1.72 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.