CitiChem India Limited is a prominent Indian distributor and supplier of industrial chemicals. Established in 1987, the company has gained a strong reputation for providing high-quality chemical products to various industries across India.
The IPO aims to fund working capital requirements, strengthen the company’s market presence, and support its long-term growth strategy.
Citichem India Limited IPO Details & Tentative Schedule
| IPO Date | December 27, 2024 – December 31, 2024 |
| Face Value | ₹10 per equity share |
| Issue Price | ₹70 per share |
| Lot Size | 2000 Shares |
| Total Offer Size | 18,00,000 shares (aggregating up to ₹12.60 Cr) |
| Fresh Issue | 18,00,000 shares (aggregating up to ₹12.60 Cr) |
| Offer for Sale | |
| Share Holding Pre Issue | 50,00,000 shares |
| Share Holding Post Issue | 68,00,000 shares |
| Listing | SME BSE |
| Registrar | KFin Technologies Limited |
| IPO Open Date | Friday, December 27, 2024 |
| IPO Close Date | Tuesday, December 31, 2024 |
| Basis of Allotment | Wednesday, January 01, 2025 |
| Initiation of Refunds | Thursday, January 02, 2025 |
| Credit of Shares to Demat | Thursday, January 02, 2025 |
| Listing Date | Friday, January 03, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 31, 2024 |
Citichem India Limited IPO Promoter Holdings
Mr. Arif Esmail Merchant, Mr. Hashim Arif Merchant, Mrs. Fozia Arif Esmail Merchant and Mrs. Saima Hashim Merhant are the promoters of the company.
| Share Holding Pre Issue | 83.25% |
| Share Holding Post Issue | 61.21% |
Citichem India Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 2000 | ₹1,40,000 |
| Retail (Max) | 1 | 2000 | ₹1,40,000 |
| HNI (Min) | 2 | 4000 | ₹2,80,000 |
About Citichem India Limited
CitiChem India Limited, established in 1992, is a leading distributor of industrial chemicals in India, serving diverse industries such as manufacturing, agriculture, textiles, and food processing. CitiChem’s strengths lie in its experienced leadership, strong supplier and customer relationships, and commitment to operational excellence.
Strategic Vision
Under the leadership of Mr. Arif Merchant and Mr. Hashim Merchant, CitiChem India Limited aims to be the leading gateway for all chemical requirements, emphasizing quality, reliability, and customer satisfaction.
Products Offered by Unimech Aerospace
- Caustic Soda Flakes (NaOH 99% minimum): Used in various industries for processes like soap making and water treatment.
- Caustic Soda Lye (NaOH 47% minimum): Employed in chemical manufacturing and petroleum refining.
- Soda Ash Light (Na₂CO₃ 99% minimum): Utilized in glass manufacturing, detergents, and paper production.
- Caustic Potash Flakes (KOH): Applied in fertilizers, batteries, and soaps.
- Soda Bicarb (Sodium Bicarbonate): Commonly used in baking, fire extinguishers, and as a pH neutralizer.
- Sodium Nitrate (NaNOâ‚‚ 99% minimum): Used in food preservation, fertilizers, and explosives.
Strengths and Business Highlights
- Experienced Leadership: The company benefits from the extensive experience of its mentors, Mr. Arif Merchant and Mr. Hashim Merchant, who have been instrumental in guiding its operations and growth.
- Scalable Business Model: CitiChem’s customer-centric and order-driven approach ensures optimal utilization of resources, quality supply, and economies of scale.
- Focus on Quality: The company is committed to dealing only with quality products procured from credible suppliers, ensuring that all delivered products are quality certified.
- Strong Supplier and Customer Relationships: CitiChem maintains cordial relationships with both suppliers and customers, fostering trust and long-term collaboration.
- Dedicated After-Sales Network: The company offers dedicated after-sales support, enhancing customer satisfaction and loyalty.
Objectives of the IPO
1. Funding Working Capital Requirements: The company plans to use a portion of the proceeds to strengthen its working capital, enabling it to manage day-to-day operations effectively and support business expansion.
2. Business Expansion: The funds will assist in scaling up operations, increasing product offerings, and enhancing its market presence.
3. Enhancing Brand Visibility: Listing on the SME platform of BSE will improve the company’s visibility, credibility, and trust among customers, suppliers, and investors.
4. Meeting General Corporate Purposes: The IPO proceeds will also be used for general corporate purposes, including administrative and operational improvements.
Risks Involved
1. Market Risk: As this is the company’s first public offering, there is no assurance of active or sustained trading of its shares post-listing.
2. Dependence on Raw Materials: Fluctuations in the prices or availability of raw materials can impact profitability.
3. Regulatory Compliance: The company operates in a highly regulated industry, and any failure to comply with environmental or industrial safety standards may result in penalties.
4. Economic Volatility: Demand for industrial chemicals is closely linked to the economic environment, making the company vulnerable to market downturns.
5. Industry Competition: The chemical distribution sector is competitive, and the company may face challenges from both domestic and international players.
Market Potential and Industry Overview
1. Growing Demand for Industrial Chemicals: The industrial chemicals market in India is expected to witness consistent growth, driven by increasing demand from end-user industries such as textiles, food processing, agriculture, and manufacturing.
2. Rising Infrastructure Development: Expanding infrastructure and industrialization in India create opportunities for growth in the chemicals sector, particularly for companies catering to essential applications like water treatment, glass manufacturing, and soap production.
3. Government Initiatives: Policies promoting “Make in India” and industrial growth, along with subsidies for the agriculture and manufacturing sectors, support the demand for industrial chemicals.
4. Specialty Chemicals Demand: Increasing use of specialty chemicals in high-growth sectors such as electronics, automotive, and pharmaceuticals further enhances market potential.
5. Growth Drivers: Key drivers include technological advancements, urbanization, and the shift toward eco-friendly products.
6. Challenges: The industry faces challenges such as volatile raw material prices, stringent environmental regulations, and supply chain disruptions.
Company Financials
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 June 2024 |
| Assets | 9,142.69 Lakhs | 7,972.53 Lakhs | 6,932.79 Lakhs | 6,851.56 Lakhs |
| Revenue | 8,528 Lakhs | 2,094.07 Lakhs | 1,960.58 Lakhs | 149.07 Lakhs |
| Profit After Tax | 23.94 Lakhs | 36.26 Lakhs | 111.83 Lakhs | 19.95 Lakhs |
| Net Worth | 577.0 1Lakhs | 613.27 Lakhs | 725.11 Lakhs | 745.06 Lakhs |
| Reserves and Surplus | 77.01 Lakhs | 113.27 Lakhs | 225.11 Lakhs | 245.06 Lakhs |
| Total Borrowing | 110.62 Lakhs | 109.65 Lakhs | 108.21 Lakhs | 108.21 Lakhs |
Key Performance Indicators
Revenue Growth
| Financial Year | Value |
| FY 2021-22 | ₹8,521.64​ Lakhs |
| FY 2022-23 | ₹92,094.07 Lakhs |
| FY 2023-24 | ₹1,960.58 Lakhs |
Profit After Tax (PAT)
| Financial Year | Value |
| FY 2021-22 | ₹23.94 Lakhs |
| FY 2022-23 | ₹36.26 Lakhs |
| FY 2023-24 | ₹111.83 Lakhs |
Earnings Per Share (EPS)
| Financial Year | Value |
| FY 2021-22 | ₹2.15 |
| FY 2022-23 | ₹0.81 |
| FY 2023-24 | ₹2.24 |
Return on Equity (ROE)
| Financial Year | Value |
| FY 2021-22 | 4.15% |
| FY 2022-23 | 5.91% |
| FY 2023-24 | 15.42% |
Return on Capital Employed (ROCE)
| Financial Year | Value |
| FY 2021-22 | 5.97% |
| FY 2022-23 | 7.89% |
| FY 2023-24 | 21.47% |
Debt-to-Equity Ratio
| Financial Year | Value |
| FY 2021-22 | 0.19 |
| FY 2022-23 | 0.18 |
| FY 2023-24 | 0.15 |
Citichem India Limited IPO Peer Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) | P/E(x) | RoNW (%) | P/BV Ratio | Financial Statements |
| Citichem India Limited | 2.24 | 2.24 | 31.3 | 15.42 | 14.5 | ||
| Shankar Lal Rampal Dye-chem Ltd | 1.02 | 1.02 | 91.33 | 6.59 | 15.4 | ||
| Vinyl Chemicals (india) Ltd. | 11.91 | 11.91 | 30.31 | 18.71 | 63.66 |
Citichem India Limited IPO Prospectus
Citichem India Limited Contact Details
Citichem India Limited
7, Floor-1, Plot-96,
Dharam Jyoti, Kazi Sayed Street, Khand Bazar,
Masjid Station, Mandvi, Mumbai 400003
Phone: 91- 9223278100
Email: cs@citichemindia.com
Website: https://www.citichemindia.com/
Citichem India Limited IPO Registrar
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: citichemindia.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Citichem India IPO Lead Manager(s)
1. Horizon Management Private Limited
Citichem India Day-wise IPO GMP Trend
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 03-01-2025 | ₹70.00 | ₹15 | 22800 | ₹85 (21.43%) | 03-01-2025 |
| 02-01-2025 | ₹70.00 | ₹15 | 22800 | ₹85 (21.43%) | 02-01-2025 |
| 01-01-2025 | ₹70.00 | ₹20 | 30400 | ₹90 (28.57%) | 01-01-2025 |
| 31-12-2024 | ₹70.00 | ₹20 | 30400 | ₹90 (28.57%) | 31-12-2024 |
| 30-12-2024 | ₹70.00 | ₹30 | 45600 | ₹100 (42.86%) | 30-12-2024 |
| 29-12-2024 | ₹70.00 | ₹30 | 45600 | ₹100 (42.86%) | 29-12-2024 |
| 28-12-2024 | ₹70.00 | ₹30 | 45600 | ₹100 (42.86%) | 28-12-2024 |
| 27-12-2024 | ₹70.00 | ₹30 | 45600 | ₹100 (42.86%) | 27-12-2024 |
| 26-12-2024 | ₹70.00 | ₹30 | 45600 | ₹100 (42.86%) | 26-12-2024 |
| 25-12-2024 | ₹70.00 | ₹30 | 45600 | ₹100 (42.86%) | 25-12-2024 |
| 24-12-2024 | ₹70.00 | 0 | ₹70 (0%) | 24-12-2024 | |
| 23-12-2024 | ₹70.00 | 0 | ₹70 (0%) | 23-Dec-2024 |
Frequently Asked Questions (FAQs)
1. What is CitiChem India Limited?
CitiChem India Limited is a well-established Indian company specializing in the distribution of industrial and specialty chemicals. Founded in 1992, the company plays a significant role in supplying essential chemical products to various industries, including agriculture, manufacturing, textiles, and food processing.
2. What are the key details of the CitiChem India IPO?
IPO Opening Date: December 27, 2024
IPO Closing Date: December 31, 2024
Price Band: ₹70 per share
Lot Size: 2000 shares
Issue Size: 18,00,000 shares (aggregating up to ₹12.60 Cr)
3. How can I apply for the CitiChem India?
You can apply through:
ASBA (Applications Supported by Blocked Amount): via your bank’s net banking portal.
UPI (Unified Payments Interface): using stockbroking platforms such as Zerodha, Upstox, Groww, or Paytm Money.
4. When will the IPO allotment status be announced?
The allotment status will be available on the registrar’s website, usually within 3-5 working days after the IPO closes.
