Citichem India IPO to Open on December 27: All You Need to Know
The Citichem India IPO is set to open for subscription on December 27 with a price band of ₹70 per share. Investors can bid in lots of 2,000 shares, with the grey market indicating a strong premium ahead of the listing.
The eagerly anticipated Citichem India IPO will launch on Friday, December 27, 2024, and remain open for subscription until Tuesday, December 31, 2024. Priced at ₹70 per equity share with a face value of ₹10, bids can be made for a minimum of 2,000 shares and in multiples thereafter.
Company Overview
Founded in 1992, Citichem India Limited specializes in sourcing and distributing a wide range of organic and inorganic chemicals, bulk drugs, and food chemicals, primarily catering to the pharmaceutical sector. The company has established itself as a key player in the direct supply of specialty chemicals and intermediate products, which find applications in a diverse array of industries, including:
- Aluminum and Steel
- Textiles and Paper
- Dairy and Pharmaceuticals
- Paints, Dyes, and Adhesives
- Food and Soap Production
In addition to chemicals, Citichem markets food preservatives under its proprietary brand, ensuring safe and reliable delivery through its dedicated distribution network.
Financial Performance
According to the company’s Red Herring Prospectus (RHP):
- FY2024 Revenue: ₹1,960.58 Lakhs
- FY2024 EBITDA: ₹179.29 Lakhs
- FY2024 PAT: ₹111.83 Lakhs
- Q1 FY2025 Revenue (as of June 24): ₹109.75 Lakhs
- Q1 FY2025 EBITDA: ₹28.38 Lakhs
- Q1 FY2025 PAT: ₹19.95 Lakhs
Listed peers include Shankar Lal Rampal DyeChem Ltd (P/E: 91.33) and Vinyl Chemicals (I) Ltd (P/E: 361.05).
IPO Details
The Citichem India IPO will consist of a fresh issue of 18,00,000 equity shares, amounting to ₹12.60 crore. There is no Offer for Sale (OFS) component.
Use of Funds
Proceeds from the IPO will be used for:
- Capital expenditures, including property acquisition.
- Purchasing transportation vehicles and related equipment.
- General corporate purposes.
- Covering IPO-related expenses.
Key Participants
- Book Running Lead Manager: Horizon Management Private Ltd
- Registrar: Kfin Technologies Ltd
- Market Maker: Aftertrade Broking Pvt Ltd
Grey Market Premium (GMP)
As of today, the Citichem India IPO GMP stands at ₹30, suggesting a premium of 42.86% over the issue price. Based on the IPO price of ₹70 and the current GMP, the expected listing price is estimated at ₹100 per share.
The Citichem India IPO presents an exciting opportunity for investors, driven by the company’s strong presence in the specialty chemicals sector and its diverse product portfolio. With positive sentiment in the grey market and solid fundamentals, the IPO is likely to attract significant interest ahead of its listing.
Stay tuned for updates on subscription status, allotment, and the listing performance of Citichem India.
