Citichem India IPO : Price, Date, GMP and Key Details

Citichem India IPO-Complete Overview

Citichem India IPO under the SME IPO category is a fixed price issue of Rs.12.60 crore (18 lac Shares) by Citichem India Limited, incorporated in 1992. The company focuses on independent specialty chemicals for bulk drugs, intermediates, and actual end material direct selling.

Organic Import and Supply of Inorganic Chemicals: Bulk Drugs and Food Chemicals to the Pharmaceutical Industry.

Bulk Supply Operations: Supply and Specimen Collection of Specialty Chemicals-The specialty chemicals and intermediates are traded with the application in metal, textile processing, paper, dairy, paint, dyes and intermediates, soap making, pharmaceuticals, food, and adhesives.

The factory packages only food preservatives and food chemicals under its brand name and distributes the same via its distribution team so that bulk supply can be safely delivered.

Caustic Soda Flakes, Caustic Soda Lye, Citric Acid Monohydrate, Hydrogen Peroxide, etc.

Specialty Chemicals, Intermediates, And Active Pharmaceutical Ingredients (APIs): The company divides its activities into several instructions- specializing in indent, sourcing, make-to-order outsourcing, and supply of specialty chemicals, bulk drugs, and APIs for domestic as well as international customers in the pharmaceutical, paint, and food industries.

Food Chemicals: This company conducts most of its business on behalf of end-user customers taking the trade-off with repackaging, retail distribution, and marketing of food chemicals.

Laboratory Chemicals: Businesses offering single-window solutions to all types of laboratory chemicals.

Citichem IPO Overview

This Citichem India IPO date is 27 December, and its ‘initial public offering’ will end on 31 December 2024. 

The Rs.12.60 crore new SME IPO comprises a wholly fresh issue of 18 lac Shares.

This upcoming IPO date is on 27 December 2024. The Citichem India IPO Price is Rs.70 for each Share. 

The expected IPO listing date is Friday, 03 January 2024, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue fell by -6% and PAT increased by 208% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

State-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• For capital expenditures related to property acquisition.

• For the acquisition of vehicles and accessories for transportation.

• To cover the costs of the issue.

• General corporate purposes.

Peers of Citichem India IPO Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The Citichem India Limited IPO share price is Rs.70 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.2.24 from the last year, the resulting P/E ratio is 31.25x.

Considering the weighted EPS of Rs.1.74 for the last three years, the P/E ratio is 40.23x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 60.82x.

 

In simple words, the P/E ratio of this IPO (31.25x), compared with the industry’s average P/E of 60.82x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Proficient Promoters and management team.

• Adaptable Business model.

• Concentrate on quality and innovation.

• Location Advantage.

• Cordial relationships with suppliers &customers dedicated after-sales network.

 

IPO’s Weaknesses

• Heavy requirement of working capital.

• Some employees have lack of expertise.

• Family business.

• Reliance on suppliers.

• Tough competition.

• Low margin business

 

Citichem India IPO GMP

Citichem India IPO GMP today has not started yet as of 24 December 2024.

IPO Timetable (Tentative)

The IPO opening date is from December 27 to December 31, 2024, with allotment on January 01, 2025, refund initiation on January 02, 2025, and listing on January 03, 2025.

Citichem India IPO Details 

The Citichem IPO with a Face Value of Rs.10 per share offers a total issue size of 18,00,000 Shares (Rs.12.60 Cr).

 

Citichem India IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.140000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.280000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Citichem India Ltd.

• Mr. Arif Esmail Merchant

• Mr. Hashim Arif Merchant

• Mrs. Fozia Arif Esmail Merchant

• Mrs. Saima Hashim Merchant.

IPO Lead Managers

Horizon Management Private Limited.

 

Dividend Policy

The company has not paid dividends in the last three FYs.

 

Conclusion

The Citichem India IPO looks to be promising for investors in specialty chemicals, APIs, and food chemicals. Although it has competitive pricing, promising promoter background, high working capital requirements, and competition, these factors do not make it less attractive. P/E is a measure that indicates undervaluation in comparison to industry peers. Nevertheless, potential investors should consider the analysis of the financial trends and risks before taking the plunge.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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