Technichem Organics Limited, established in 1996, is a chemical manufacturing company based in Ahmedabad, Gujarat, India. The company specializes in producing a diverse range of chemicals, including pyrazoles, pyrazolones, specialty chemicals, pigment and dye intermediates, and air oxidation chemistry products. These products cater to various industries such as pharmaceuticals, agriculture, coatings, pigments, and dyes.
The company operates a manufacturing facility in Gujarat, spanning 26,079 square meters, with a production capacity of 950,000 kg per annum. Technichem Organics has a global presence, exporting to 11 countries, with a significant market in China. The company emphasizes research and development to innovate and optimize its products and processes.
Technichem Organics IPO Details & Tentative Schedule
| IPO Date | December 31, 2024 to January 2, 2025 |
| Face Value | ₹10 per share |
| Issue Price | ₹52 to ₹55 per share |
| Lot Size | 2,000 Shares |
| Total Offer Size | 45,90,000 shares (aggregating up to ₹25.25 Cr) |
| Fresh Issue | 45,90,000 shares (aggregating up to ₹ 25.25 Cr) |
| Offer for Sale | |
| Share Holding Pre Issue | 1,27,31,250 shares |
| Share Holding Post Issue | 1,73,21,250 shares |
| Listing | BSE SME |
| Registrar | Bigshare Services Pvt Ltd |
| IPO Open Date | Tuesday, December 31, 2024 |
| IPO Close Date | Thursday, January 2, 2025 |
| Basis of Allotment | Friday, January 3, 2025 |
| Initiation of Refunds | Monday, January 6, 2025 |
| Credit of Shares to Demat | Monday, January 6, 2025 |
| Listing Date | Tuesday, January 7, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 2, 2025 |
Technichem Organics IPO Promoter Holdings
Mr. Bharat Jayantilal Pandya and Mr. Pandya Anilkumar Jayantilal are the promoters of the company.
| Share Holding Pre Issue | 97.64% |
| Share Holding Post Issue | 71.77% |
Technichem Organics IPO Reservation
IPO Reservation Table
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 2000 | ₹1,10,000 |
| Retail (Max) | 1 | 2000 | ₹1,10,000 |
| HNI (Min) | 2 | 4,000 | ₹2,20,000 |
About Technichem Organics Limited
Technichem Organics Limited is an Indian company that specializes in the production of high-quality chemical products, focusing on a wide range of industrial applications. Established in 1996, the company operates in key sectors such as pharmaceuticals, agriculture, coatings, pigments, and dyes.
Key Features and Offerings of Technichem Organics Limited
1. Diverse Product Portfolio:
- Pyrazoles and Pyrazolones: These are key intermediates used in pharmaceuticals and agrochemicals.
- Specialty Chemicals: A range of chemicals designed for specific industrial applications, ensuring high-performance in various sectors.
- Pigment and Dye Intermediates: Raw materials that are crucial in the production of pigments and dyes used in textiles, coatings, and other industries.
- Air Oxidation Chemistry: Specialty chemicals used in the air oxidation process, critical for different industrial operations.
2. Manufacturing Capabilities:
- State-of-the-Art Manufacturing Facility: Located in Gujarat, India, the facility has a robust annual production capacity of 950,000 kg, allowing the company to meet both domestic and international demand.
- Quality Control and Innovation: Technichem focuses on maintaining high standards in production, with continuous research and development to improve product quality and process efficiency.
3. Export Markets:
- Global Reach: Technichem Organics exports to over 11 countries, with significant markets in China and other regions, ensuring a strong international footprint.
- Sustainability in Operations: As part of its export strategy, the company emphasizes sustainability and eco-friendly practices in manufacturing.
4. Financial Stability:
- Technichem has shown consistent growth, with a reported revenue of ₹46.39 crore for the fiscal year ending March 31, 2024. The company maintains a strong profitability track record with a profit after tax of ₹4.73 crore and a Return on Equity (RoE) of 24.11%.
5. Future Growth and Expansion Plans:
- Capacity Expansion: The company aims to increase its manufacturing capacity to meet the growing global demand for its products.
- Debt Reduction: Funds raised through the IPO will be utilized to reduce existing debt, which will strengthen the company’s financial position and improve future profitability.
- Working Capital Support: To ensure smoother operations and cater to growing market demands, part of the funds will also go toward enhancing working capital.
Strategic Vision
Technichem Organics Limited envisions becoming a global leader in specialty chemicals, driven by innovation, sustainability, and operational excellence. The company aims to expand its manufacturing capacity to meet growing demand while maintaining high-quality standards. By focusing on debt reduction and enhancing working capital efficiency, it seeks to strengthen financial stability and profitability.
Products Offered by Technichem Organics Limited
1. Pyrazoles:
- Key intermediates used in pharmaceuticals and agrochemicals.
- Critical in the synthesis of advanced chemical compounds.
2. Pyrazolones:
- Widely used in dye and pigment industries.
- Also serve as intermediates in pharmaceutical manufacturing.
3. Specialty Chemicals:
- Tailored solutions for specific industrial applications.
- Includes a wide range of chemicals designed for high performance in niche markets.
4. Pigment and Dye Intermediates:
- Essential raw materials for manufacturing pigments and dyes.
- Used in industries like textiles, coatings, and plastics.
5. Air Oxidation Chemistry Products:
- Specialty chemicals employed in air oxidation processes.
- Used in diverse industrial and chemical synthesis applications.
These offerings highlight Technichem Organics’ focus on high-quality chemical manufacturing for a variety of global industries.
Strengths and Business Highlights of Technichem Organics Limited
1. Strong Product Portfolio:
- Diverse range of high-quality chemicals, including Pyrazoles, Pyrazolones, Specialty Chemicals, and Pigment & Dye Intermediates.
- Products cater to multiple industries like pharmaceuticals, agriculture, pigments, and coatings, ensuring diversified revenue streams.
2. Advanced Manufacturing Capabilities:
- State-of-the-art facility in Gujarat, India, with a significant production capacity of 950,000 kg annually.
- Focus on quality control and operational efficiency to maintain global standards.
3. Global Market Presence:
- Exports to over 11 countries, including China, showcasing a robust international footprint.
- Positioned as a reliable supplier in competitive global markets.
4. Financial Stability and Growth:
- Strong financial performance with consistent revenue growth and profitability.
- Healthy Return on Equity (RoE) of 24.11%, demonstrating efficient capital utilization.
5. Innovation and R&D Focus:
- Continuous investment in research and development to improve product quality and develop new offerings.
- Adapts to industry trends, ensuring relevance and competitiveness.
Objectives of the Technichem Organics IPO
1. Capacity Expansion: Increase manufacturing capabilities to meet growing market demand.
2. Debt Reduction: Strengthen financial health by reducing existing liabilities.
3. Working Capital Enhancement: Support smooth operations and manage growing business needs.
4. Corporate Growth: Fund general corporate purposes to drive sustainable development.
The IPO will enable Technichem Organics to drive growth, improve financial health, and solidify its market position.
Risks Involved
1. Market Dependency: Heavy reliance on specific industries (e.g., pharmaceuticals and agriculture) makes the company vulnerable to sector-specific downturns or regulatory changes.
2. Raw Material Costs: Fluctuations in the prices and availability of raw materials can impact profitability.
3. Foreign Exchange Risks: With significant exports, currency volatility may affect revenue and earnings.
4. Geopolitical Risks: Export dependence on specific countries like China exposes the company to geopolitical tensions or trade restrictions.
5. Operational Risks: Dependence on a single manufacturing facility increases vulnerability to disruptions like natural disasters or operational failures.
6. IPO Risk: Post-IPO market volatility may affect the company’s valuation and investor sentiment.
Investors should carefully evaluate these risks alongside the company’s growth potential before making investment decisions.
Market Potential and Industry Overview
1. Growing Chemical Industry: The global chemical industry is expanding, driven by increasing demand in pharmaceuticals, agriculture, textiles, and coatings, which benefits companies like Technichem Organics.
2. Rising Demand for Specialty Chemicals: Industries are increasingly relying on high-performance specialty chemicals, presenting growth opportunities for manufacturers of niche products like Pyrazoles and Pigment Intermediates.
3. Export Potential: With a strong export market, particularly in China and other emerging economies, Technichem is well-positioned to capitalize on international demand.
4. Sustainability Trends: The growing focus on environmentally friendly and sustainable production methods offers a competitive advantage to companies that prioritize eco-conscious practices in their operations.
Company Financials
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Jun 2024 |
| Assets | 4,416.56 Lakhs | 4,424.63 Lakhs | 5,247.32 Lakhs | 5,743.17 Lakhs |
| Revenue | 6,778.63 Lakhs | 5,101.97 Lakhs | 4,696.84 Lakhs | 1,487.89 Lakhs |
| Profit After Tax | 342.06 Lakhs | 172.93 Lakhs | 472.68 Lakhs | 140.46 Lakhs |
| Net Worth | 1,316.43 Lakhs | 1,489.36 Lakhs | 1,962.04 Lakhs | 2,102.5 Lakhs |
| Reserves and Surplus | 1,061.81 Lakhs | 1,234.74 Lakhs | 1,707.42 Lakhs | 829.37 Lakhs |
| Total Borrowing | 1,017.26 Lakhs | 1,562.15 Lakhs | 1,763.94 Lakhs | 1,658.31 Lakhs |
Key Performance Indicators
The market capitalization of Technichem Organics IPO is Rs 95.27 Cr.
Revenue Growth
| Financial Year | Value |
| FY 2021-22 | ₹6,702.06 Lakhs |
| FY 2022-23 | ₹5,035.79 Lakhs |
| FY 2023-24 | ₹4,639.11 Lakhs |
Profit After Tax (PAT)
| Financial Year | Value |
| FY 2021-22 | ₹342.06 Lakhs |
| FY 2022-23 | ₹172.93 Lakhs |
| FY 2023-24 | ₹472.68 Lakhs |
Earnings Per Share (EPS)
| Financial Year | Value |
| FY 2021-22 | ₹7.73 |
| FY 2022-23 | ₹3.91 |
| FY 2023-24 | ₹10.69 |
Return on Equity (ROE)
| Financial Year | Value |
| FY 2021-22 | 32.44% |
| FY 2022-23 | 12.33% |
| FY 2023-24 | 27.39% |
Return on Capital Employed (ROCE)
| Financial Year | Value |
| FY 2021-22 | 22.25% |
| FY 2022-23 | 11.84% |
| FY 2023-24 | 22.57% |
Debt-to-Equity Ratio
| Financial Year | Value |
| FY 2021-22 | 0.77 |
| FY 2022-23 | 1.05 |
| FY 2023-24 | 0.90 |
These metrics indicate robust financial health, with substantial improvements in profitability, operational efficiency, and a strengthened balance sheet over the analyzed period.
Technichem Organics IPO Peer Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) | P/E(x) | RoNW (%) | P/BV Ratio | Financial Statements |
| Technichem Organics Limited | 3.71 | 15.41 | 24.09 | 3.67 | |||
| Ami Organics Limited | 11.91 | 183.05 | 178.25 | 6.47 | 11.6 | Standalone | |
| Anupam Rasayan India Limited | 10.84 | 249.26 | 69.66 | 4.29 | 3.03 | Standalone | |
| Chemcrux Enterprises Ltd | 5.7 | 48.79 | 32.6 | 12.6 | 3.85 | Standalone |
Technichem Organics IPO Prospectus
› Technichem Organics IPO DRHP
Technichem Organics Limited Contact Details
Technichem Organics Limited
5th Floor, Malak Complex,
Behind Old Gujarat High Court,
Navrangpura, Ahmedabad 380009
Phone: 079-27543722
Email: investors@technichemorganics.com
Website: http://www.technichemorganics.com/
Technichem Organics IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
Technichem Organics IPO Lead Manager(s)
1. Shreni Shares Limited
Technichem Organics Day-wise IPO GMP Trend
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 07-01-2025 | ₹55.00 | ₹17 | 25800 | ₹72 (30.91%) | 07-01-2025 |
| 06-01-2025 | ₹55.00 | ₹17 | 25800 | ₹72 (30.91%) | 06-01-2025 |
| 05-01-2025 | ₹55.00 | ₹15 | 22800 | ₹70 (27.27%) | 05-01-2025 |
| 04-01-2025 | ₹55.00 | ₹15 | 22800 | ₹70 (27.27%) | 04-01-2025 |
| 03-01-2025 | ₹55.00 | ₹15 | 22800 | ₹70 (27.27%) | 03-01-2025 |
| 02-01-2025 | ₹55.00 | ₹15 | 22800 | ₹70 (27.27%) | 02-01-2025 |
| 01-01-2025 | ₹55.00 | ₹15 | 22800 | ₹70 (27.27%) | 01-01-2025 |
| 31-12-2024 | ₹55.00 | ₹15 | 22800 | ₹70 (27.27%) | 31-12-2024 |
| 30-12-2024 | ₹55.00 | ₹11 | 16700 | ₹66 (20%) | 30-12-2024 |
| 29-12-2024 | ₹55.00 | ₹11 | 16700 | ₹66 (20%) | 29-12-2024 |
| 28-12-2024 | ₹55.00 | ₹11 | 16700 | ₹66 (20%) | 28-12-2024 |
| 27-12-2024 | ₹55.00 | ₹11 | 16700 | ₹66 (20%) | 27-12-2024 |
| 26-12-2024 | ₹55.00 | ₹11 | 16700 | ₹66 (20%) | 26-12-2024 |
| 25-12-2024 | ₹55.00 | ₹11 | 16700 | ₹66 (20%) | 25-12-2024 |
| 24-12-2024 | ₹55.00 | ₹0 | — | ₹55 (0%) | 24-12-2024 |
Frequently Asked Questions (FAQs)
1. What is Technichem Organics?
Technichem Organics Ltd., formerly known as Technichem Organics Pvt. Ltd., is an ISO 9001:2015 and ISO 14001:2015 certified company based in Ahmedabad, Gujarat, India. The company specializes in manufacturing and supplying a wide range of chemical products, including pyrazoles, pyrazolones, specialty chemicals, pigment and dye intermediates, air oxidation chemistry products, and ethers.
2. What are the key details of the Technichem Organics IPO?
IPO Opening Date: December 31, 2024
IPO Closing Date: January 2, 2025
Price Band: ₹52 to ₹55 per share
Lot Size: 2,000 shares
Issue Size: ₹25.25 crore
3. How can I apply for the Technichem Organics IPO?
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 7 working days after the IPO closes.
