Technichem Organics Limited has launched its initial public offering (IPO) on December 31, 2024, aiming to raise approximately ₹25.25 crores. The IPO is priced between ₹52 and ₹55 per share and consists entirely of a fresh issue of 45.9 lakh shares. This offering is expected to attract significant investor interest, especially from retail investors, as it addresses the growing demand for specialty chemicals used in various sectors such as agriculture, pharmaceuticals, and coatings.
₹15
₹55
₹57.25
Expert Opinions
Market sentiment for the Technichem Organics IPO is largely positive, reflecting strong investor interest in the specialty chemicals sector. Company strengths include its diverse product portfolio, which encompasses pyrazoles, specialty chemicals, and air oxidation chemistry, catering to various industries such as pharmaceuticals and agriculture. The company’s global presence across 11 countries enhances its market reach and competitiveness, supported by robust R&D capabilities that drive innovation and cost-effective production.
However, risks and challenges include reliance on a limited number of key customers and potential fluctuations in demand for its products. The valuation analysis reveals a projected return on net worth (RoNW) of 24.09%, highlighting effective management and strong profitability metrics that bolster investor confidence in the company’s financial health. From a long-term investment perspective, Technichem Organics is well-positioned to benefit from the growing demand in the chemical industry.
Investor Considerations
Company performance and fundamentals indicate a mixed financial outlook, with revenue showing a decline of 7.9% in FY2024, although there are signs of recovery based on Q1 FY2025 results. The sector outlook is promising, as the Indian chemicals market is projected to grow from $220 billion in 2022 to $300 billion by 2025, creating opportunities for companies like Technichem.
IPO valuation for this company is supported by a projected earnings per share (EPS) that is competitive, offering a solid basis for assessing its profitability in relation to the IPO price. Growth prospects are supported by the company’s plans to expand production capabilities with the establishment of a new facility. However, potential risk factors include reliance on specific geographies and fluctuating demand. A long-term investment horizon is advisable as Technichem Organics seeks to capitalize on industry growth while navigating inherent challenges effectively.
| Date | GMP | Trend |
|---|---|---|
| 06 Jan 2025 11.01 | ₹15 | --- |
| 05 Jan 2025 10.03 | ₹15 | --- |
| 04 Jan 2025 11.44 | ₹15 | --- |
| 03 Jan 2025 10.55 | ₹15 | --- |
| 02 Jan 2025 10.38 | ₹15 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Technichem Organics’ listing performance. While the GMP of ₹15 predicted a significant premium of 27.27% over the issue price, the stock delivered only a modest gain of 4.09%. With a substantial prediction error of 18.21%, the GMP correctly predicted the positive listing direction but significantly overestimated the magnitude of gains, demonstrating its limitations as a reliable price predictor in this case.
Technichem Organics IPO Current GMP is ₹15.
Technichem Organics IPO Expected Returns is 27.27%.
Technichem Organics IPO estimated listing price is ₹70.