Technichem Organics IPO fully subscribed within hours of launch on high retail demand; check price band, key dates and more

The initial public offering (IPO) of Technichem Organics Ltd opened to a strong demand across investor categories on Tuesday, December 31. The BSE SME IPO was fully subscribed within hours of launch driven by the retail investors.

The ₹25.25-crore IPO of the chemicals producer is open for subscription till Thursday, January 2, 2025.

As per the BSE data till 3:10 pm, the public offer was booked 5.53 times with bids for 1.82 crore shares against 30.4 lakh shares on offer.

The retail portion of the IPO saw the highest demand with bids for more than 1.48 crore shares against 15.20 lakh shares reserved for the category. The retail investors booked their quota 9.74 times on the first day.

The Non-Institutional Investors (NIIs) applied for 34.04 lakh shares against the allocation of 6.52 lakh shares, leading to a subscription of 3.77 times in the category.

In the Qualified Institutional Buyers’ (QIBs) category, the company did not receive any bid against the reserved portion of 8.68 lakh shares.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Technichem Organics Ltd.

Technichem Organics raises ₹7.14 crore from anchor investors

Ahead of the launch of its IPO, Technichem Organics raised a total of ₹7.14 crore from anchor investors. Its anchor round was held on December 30.

The company allotted 12.98 lakh equity shares to six anchor investors at an allocation price of ₹55 apiece, including a share premium of ₹45 per share. Pink Oak Global Fund is the leading anchor investor, securing the highest percentage of anchor investor portion of 28.04%.

Technichem Organics IPO price band and other details

Technichem Organics IPO consists of an exclusively fresh issue of 45.9 lakh shares worth ₹25.25 crore, and no offer-for-sale (OFS) component.

The company has fixed the price band at ₹52 to ₹55 per share for the IPO. The minimum lot size is 2,000 shares for retail investors, aggregating to an investment of ₹1,10,000.

Shreni Shares Ltd is the book-running lead manager of the Technichem Organics IPO, while Bigshare Services Private Ltd is the registrar for the issue.

Technichem Organics IPO key dates

The IPO allotment status is expected to be finalised on Friday, January 3, 2025. Refunds will be issued on Monday, January 6, 2025, and the allottees will also receive shares in the Demat accounts on the same day.

The company has proposed to list its shares on BSE SME platform on Tuesday, January 7, 2025.

About Technichem Organics and use of IPO proceeds

The net proceeds from the fresh issue will be used to fund capital expenditure requirements for setting up a new plant, debt repayment, and general corporate purposes.

The company reported 7.86% decline in its revenue from operations to ₹46.39 crore in the financial year 2023-24. In the preceding financial year its revenue from operations stood at ₹50.35 crore. The profit after tax increased 174.41% to ₹4.72 crore in FY24 as against ₹1.72 crore in FY23.

For the first quarter of FY24, revenue and net profit stood at ₹14.87 crore and ₹1.4 crore, respectively.