Upcoming IPO: Citichem India IPO opens on December 27; issue price band set at ₹70 apiece; check GMP

Upcoming IPO: Citichem India IPO will open for subscription on Friday, December 27, and close on Tuesday, December 31. Citichem India IPO price band has been fixed at 70 per equity share of face value of ₹10 each. Bids can be made for a minimum of 2,000 equity shares and in multiples of 2,000 equity shares thereafter.

Founded in 1992, Citichem India Limited specializes in purchasing and distributing organic and inorganic chemicals, bulk drugs, and food chemicals for the pharmaceutical sector. The company concentrates on the direct provision of specialty chemicals, bulk drugs, and intermediate products. It deals in specialty chemicals and intermediates that find diverse applications in various industries, including aluminum, steel, textiles, paper, dairy, paints, dyes and intermediates, soap production, pharmaceuticals, food, and adhesives.

Additionally, the company offers food preservatives and chemicals under its own brand, which are marketed through its distribution team to guarantee the secure delivery of bulk products.

As per red herring prospectus (RHP), the company's listed peer is Shankar Lal Rampal DyeChem Ltd (with a P/E of 91.33), and Vinyl Chemicals (I) Ltd (with a P/E of 361.05).

In the fiscal year 2024, the company recorded a revenue of ₹1,960.58 Lakhs, with an EBITDA of ₹179.29 lakhs, and a PAT of ₹111.83 lakhs. As of June 24, the company has generated a revenue of ₹109.75 lakhs, an EBITDA of ₹28.38 Lakhs, and a PAT of ₹19.95 lakhs.

Citichem India IPO details

Citichem India IPO consists of a fresh issue of 18,00,000 equity shares, aggregating to ₹12.60 crore. There's no offer for sale (OFS) component.

The firm plans to use the net funds raised from the new issue for various objectives, including capital expenditures to acquire property, purchasing transportation vehicles and related accessories, general corporate purposes, and covering the expenses associated with the issue.

Horizon Management Private Ltd serves as the book running lead manager for the Citichem India IPO, whereas Kfin Technologies Ltd acts as the registrar for this offering. Aftertrade Broking Pvt Ltd is designated as the market maker for the Citichem India IPO.

Citichem India IPO GMP today

Citichem India IPO GMP today is +30. This indicates Citichem India share price was trading at a premium of ₹30 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Citichem India share price is indicated at ₹100 apiece, which is 42.86% higher than the IPO price of ₹70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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