Technichem Organics Lists at 4% Premium, Shows Steady Momentum on BSE SME

Technichem Organics Limited, a speciality chemicals manufacturer operating since 1996, marked a steady entry into the public markets on Tuesday, 7th January 2025. The company, which has established itself with a diverse portfolio of chemicals serving industries from pharmaceuticals to agriculture across 11 countries, commenced trading on the BSE SME platform amid positive investor response.

Technichem Organics Listing Details

The company's market debut reflected measured investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, Technichem Organics shares debuted at ₹57.25 on BSE SME, delivering a modest 4% premium to Technichem Organics IPO investors. This steady opening validates the market's recognition of the company's established manufacturing capabilities and global presence, particularly its significant exports to China.
• Issue Price Context: The moderate premium emerged after the company had strategically priced its IPO between ₹52 and ₹55 per share, ultimately fixing the final issue price at ₹55. This pricing approach successfully balanced retail investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:56 AM IST, investor enthusiasm continued to build, pushing the stock to ₹60, representing a gain of 9.09% over the issue price, demonstrating sustained buying interest throughout the early trading session.
   

Technichem Organics First-Day Trading Performance 

The trading activity showed robust participation and strong investor conviction:

• Volume and Value: Within just the first few hours, 15.52 lakh shares changed hands, generating a turnover of ₹9.01 crore. Notably, 100% of traded shares were marked for delivery, indicating genuine investment interest rather than speculative trading.
• Demand Dynamics: The stock's appeal was evident in the order book, which showed strong buying pressure with orders for 1.84 lakh shares against sell orders for 54,000 shares, reflecting continued investor interest at higher levels.

Technichem Organics Market Sentiment and Analysis

• Market Reaction: Steady opening followed by upward momentum
• Subscription Rate: The IPO was significantly oversubscribed by 425.09 times, with NIIs leading at 1,078.9 times subscription, followed by retail investors at 329.43 times, and QIBs at 101.49 times
• Pre-listing Interest: Anchor investors demonstrated confidence by investing ₹7.14 crore before the public issue
   

Technichem Organics Growth Drivers and Challenges

Expected drivers of future performance:

• Multi-product manufacturing capability
• Integrated production infrastructure
• Strong R&D focus
• Quality and safety emphasis
• Established customer relationships

Potential challenges:

• Recent revenue decline
• High debt-to-equity ratio of 0.90
• Competitive specialty chemicals market
• Raw material price volatility

Utilisation of IPO Proceeds 

The ₹25.25 crore raised will be used for:

• Setting up new Plant 4
• Debt repayment
• General corporate purposes

Technichem Organics Financial Performance 

The company has shown mixed results:

• Revenue decreased by 8% to ₹46.97 crore in FY2024 from ₹51.02 crore in FY2023
• Q1 FY2025 (ended June 2024) showed revenue of ₹14.88 crore with PAT of ₹1.40 crore
• Strong financial metrics with ROE of 27.39% and ROCE of 22.57%

As Technichem Organics begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and reverse revenue decline. The steady listing and subsequent momentum suggest measured investor confidence in the company's prospects in the specialty chemicals sector, particularly given its focus on high-margin value-added products and established global presence.