Citichem India IPO Day 1: Issue booked over 16 times so far on high retail demand; check offer size, price band and other key details

The initial public offering (IPO) of Citichem India Ltd opened to a strong demand on Friday, December 27, as the issue was fully subscribed within hours of launch.

The BSE SME IPO was booked 16.5 times on the back of high retail demand. Citichem India IPO received bids for nearly 2.82 crore shares against 17.08 lakh shares on offer, the BSE data till 1:45 pm showed.

The chemicals supplier aims to raise ₹12.6 crore from the primary market through its maiden share sale. The BSE SME issue is open for subscription till Tuesday, December 31.

The retail portion of the IPO was booked 28.13 times with bids for over 2.4 crore shares against 8.54 lakh shares on offer. The Non-Institutional Investors (NIIs) booked their quota 4.87 times with bids for 41.62 lakh shares compared to the allocation of 8.54 lakh shares.

Here’s a look at all the key details about the issue for the investors interested in participating in the Citichem India IPO subscription.

Citichem India IPO price band, lot size and other details

Citichem India IPO consists entirely of a fresh issue of 18 lakh shares worth ₹12.6 crore, and no offer-for-sale (OFS) component. The IPO price band has been fixed at ₹70 per share.

The minimum lot size is 2,000 shares. A retail investor can bid for at least a single lot size, which requires an investment of ₹1,40,000. For high-net-worth individuals, the minimum investment is ₹2,80,000.

Horizon Management Private Ltd is the book-running lead manager of the Citichem India IPO, while Kfin Technologies Ltd is the registrar for the issue. The IPO’s market maker is Aftertrade Broking Private Ltd.

Citichem India IPO dates

The IPO allotment status is expected to be finalised on Wednesday, January 1, 2025. Refunds will be issued on Thursday, January 2, 2025, and the allottees will also receive shares in their Demat accounts on the same day.

The company has proposed to list its shares on the BSE SME platform on Friday, January 3, 2025.

About Citichem India and use of IPO proceeds

Citichem India is primarily engaged in buying, procurement and supply of inorganic and organic chemicals, food chemicals and bulk drugs to the pharmaceutical industry. The speciality chemicals supplied by the company are used in the aluminium, steel, paper, textiles, dairy, paints, dyes, pharma, food, soap-making and adhesive industries.

The net proceeds from the fresh issuance of shares will be used for capital expenditure for the acquisition of property, purchase of transportation vehicles and accessories, corporate general purposes and meeting issue expenses.

Citichem India reported a 6.3% decline in its revenue from operations to ₹19.6 crore in the financial year 2023-24. In the preceding financial year, the revenue stood at ₹20.94 crore. The company's profit after tax (PAT) surged 208.3% to ₹1.11 crore in FY24, compared to ₹36 lakh in FY23.

The revenue and net profit stood at ₹1.09 crore and ₹19 lakh, respectively, till June 2, 2024, in the current fiscal year.