Technichem Organics IPO: Overview 

The Technichem Organics IPO is set to open on December 31, 2024, and will close on January 2, 2025. This initial public offering (IPO) aims to raise approximately INR 25.25 crores by offering 45,90,000 fresh equity shares priced between INR 52 and INR 55 per share. The shares will be listed on the BSE SME platform, targeting retail individual investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs) as per the guidelines set by SEBI.

Technichem Organics IPO: Company Background

Founded in 1996, Technichem Organics Limited specializes in the manufacturing of chemicals, particularly pyrazoles, pyrazolone, specialty chemicals, and pigments. The company serves various sectors including pharmaceuticals, agriculture, coatings, and dyes across 11 countries, leveraging its extensive experience to navigate market trends effectively. This IPO marks a significant step in expanding its operational capacity and enhancing its market presence.

Technichem Organics IPO: Objectives

The funds raised from the IPO will be allocated as follows:

• INR 7.03 crores for establishing a new production facility referred to as “Plant 4.”.
• INR 10.23 crores for repaying existing loans and borrowings.
• The remainder will be used for general corporate purposes, including enhancing research and development (R&D), manufacturing capabilities, and distribution channels

   

Important Dates

EventDateIPO Opening Date: December 31, 2024 IPO Closing DateJanuary 2, 2025Allotment Date: January 3, 2025 Initiation of RefundsJanuary 6, 2025Credit of Shares to Demat AccountsJanuary 6, 2025Listing Date: January 7, 2025

Pricing and Lot Size

The price band for the Technichem Organics IPO is set at INR 52-55 per share with a minimum lot size of 2000 shares. This translates to an investment of approximately INR 104,000 to INR 110,000 for retail investors wishing to participate in the offering

Allotment Structure

The allotment structure for the Technichem Organics IPO is defined as follows:

• 50% of the shares are reserved for Qualified Institutional Buyers (QIBs).
• 15% is allocated for non-institutional investors (NIIs).
• The remaining 35% is designated for Retail Individual Investors (RIIs).

Additionally, 2,52,000 shares are reserved specifically for market makers

How to Apply for the Technichem Organics IPO

Investors interested in applying for the Technichem Organics IPO can follow these steps:

1. Open a Demat and Trading Account:
   Ensure you have an active Demat and trading account with a registered broker.
2. Check IPO Details:
   Navigate to the IPO section on your broker’s platform to find details about the Technichem Organics IPO.
3. Place Your Bid:
   Enter the number of shares you wish to purchase within the specified price band.
4. Submit Your Application:
   Confirm your details and submit your application.
5. Check Allotment Status:
   After the allotment process concludes on January 3, investors can check their allotment status.

It’s essential to note that allotment is not guaranteed; it depends on overall demand during the subscription period

Market Sentiment and Grey Market Premium (GMP)

As of now, specific details regarding the Grey Market Premium (GMP) for Technichem Organics are not fully disclosed; however, monitoring this can provide insights into market sentiment surrounding the IPO. Typically, a positive GMP indicates strong demand from investors prior to listing.

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Conclusion

The Technichem Organics IPO presents an opportunity for investors looking to enter the SME segment of the stock market. With a clear plan for utilizing funds raised through this offering—focused on expansion and debt reduction—the company aims to strengthen its operational capabilities significantly. Given its established history in chemical manufacturing across various sectors and international markets, there may be considerable interest from both institutional and retail investors.Investors should conduct thorough research and consider their financial goals before participating in this IPO. The upcoming dates are crucial for those looking to invest early in what could be a promising addition to their portfolio.

Key Takeaways

• Technichem Organics is launching an IPO worth INR 25.25 crores.
• The price band is set between INR 52-55 per share.
• The IPO opens on December 31, 2024, and closes on January 2, 2025.
• Funds will primarily be used for setting up a new plant and repaying loans.
• Retail investors should be aware of the minimum lot size requirement of 2000 shares.

This comprehensive understanding of Technichem Organics’ upcoming IPO can help potential investors make informed decisions while navigating this investment opportunity in India’s growing SME sector.