Citichem India Limited is set to open its Initial Public Offering (IPO) for subscription on Friday, December 27, and will close on Tuesday, December 31. The company has fixed the price band for its IPO at ₹70 per equity share with a face value of ₹10 each. Bids can be made for a minimum of 2,000 equity shares, and in multiples of 2,000 shares thereafter.
Company Overview
Founded in 1992, Citichem India specializes in the procurement and distribution of organic and inorganic chemicals, bulk drugs, and food chemicals, primarily catering to the pharmaceutical sector. The company also provides specialty chemicals and intermediates for diverse industries, including aluminum, steel, textiles, paper, dairy, paints, dyes, pharmaceuticals, food, and adhesives. Citichem India markets food preservatives and chemicals under its own brand through a dedicated distribution team.
IPO Details
The Citichem India IPO consists of a fresh issue of 18,00,000 equity shares, aggregating to ₹12.60 crore. There is no Offer For Sale (OFS) component in this offering. The funds raised from the issue will be used for capital expenditures, including the acquisition of property, purchasing transportation vehicles, general corporate purposes, and covering issue expenses.
Financial Performance
For the fiscal year 2024, Citichem India reported a revenue of ₹1,960.58 lakh, with an EBITDA of ₹179.29 lakh and a PAT of ₹111.83 lakh. As of June 24, the company generated revenue of ₹109.75 lakh, with an EBITDA of ₹28.38 lakh and a PAT of ₹19.95 lakh.
Grey Market Premium (GMP)
As of today, the Citichem India IPO is trading at a GMP of +30 in the grey market, indicating strong investor interest. With this premium, the estimated listing price of Citichem India shares could be around ₹100, which is 42.86% higher than the IPO price of ₹70.
Peer Comparison
Citichem India’s listed peers include Shankar Lal Rampal DyeChem Ltd (P/E of 91.33) and Vinyl Chemicals (I) Ltd (P/E of 361.05), providing a benchmark for investors evaluating the company’s growth potential.
IPO Team
Horizon Management Private Ltd is the book-running lead manager for the IPO, while Kfin Technologies Ltd acts as the registrar. Aftertrade Broking Pvt Ltd is designated as the market maker.
Investor Sentiment
The positive GMP and recent performance of similar IPOs suggest that Citichem India’s IPO may see a strong demand, making it an attractive investment for those looking to participate in a growing chemicals distribution company.
Disclaimer
The views and recommendations provided in this article are those of individual analysts and experts and may vary based on market conditions.
