Technichem Organics IPO

Technichem Organics IPO will open on 31st December, 2024. The IPO will close on January 2nd, 2025. Price band of the IPO is Rs 52 – 55 per share.  This is an SME (Small and Medium Enterprise) IPO. It will get listed on BSE SME platform. Minimum bid lot size of the IPO is 2000 shares. Minimum investment required is therefore Rs 1,10,000. For High Net Worth Individual (HNI) investors, minimum bid lot size is 4000 shares. Minimum investment required is 2,20,000 for HNI investors. Issue size of the IPO is Rs 25.25 crore. The entire issue is a fresh issue with no offer for sale component. 

The Company 

Technichem Organics is a manufacturer of chemicals. The company’s products include Pyrazoles, Pyrazolones, pigment & dye intermediates, specialty chemicals etc. The products of the company are used as raw material in a wide range of industries. These industries include pharmaceutical industry, coating industry, pigment & dye industry etc. The company is present in 11 countries. China is a major export destination of the company.  

Financial Performance 

Net profit of the company in FY 22 stood at Rs 3.42 crore; in FY 23 it stood at Rs 1.72 crore; in FY 24  at Rs 4.72 crore. Net profit margin of the company in FY 22 was 5.10%; in FY 23 it was 3.43%; in FY 24 it was 10.19%. Return on Equity (ROE) of the company in FY 22 was 32.44%; in FY 23 was 12.33%; in FY 24 was 27.39%. Debt-to-equity ratio of the company in FY 22 was 0.77; in FY 23 was 1.05; in FY 24 was 0.90. The company did not pay any dividend in FY 22, FY 23 and FY 24. 

Valuation 

Diluted Earnings per share (EPS) of the company in FY 22 was Rs 2.98 per share; in FY 23 it was Rs 1.36 per share; in FY 24 it was Rs 3.71 per share. Average P/E ratio of this 3-year period is Rs 2.68 per share. Price-to-Earnings (P/E) ratio, at this average EPS, at which the IPO has been valued (at the upper end of the IPO price band) is 20.52. 

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest.