Considering the upper price band of Rs 70, the stock is expected to list with a premium of 21% over the issue price.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The net proceeds from the public offer will be used for funding capital expenditure for acquisition of property, purchase of transportation vehicles and general corporate purposes.
The Rs 12 crore IPO of Citichem India, which was completely a fresh equity sale of 18 lakh shares, received robust response from investors with an overall subscription of 414 times at close.
Citichem India is mainly engaged in the business of buying, procuring, and supplying, of organic and inorganic chemicals, bulk drugs, and food chemicals to the pharmaceutical industry.The traded speciality chemicals and intermediates have a wide application in aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food and adhesive Industry.Also Read: At 229x, Indo Farm Equipment IPO gets 2nd highest subscription among 2024 issues
The company also supplies food preventives and chemicals under its own brand name which is thereafter converted into sales in their own books by the distribution team who ensures safe delivery of bulk supply.
Globally, India is the fourth-largest producer of agrochemicals after the US, Japan and China. India accounts for 16% of the world production of dyestuffs and dye intermediates. The Indian colorants industry has emerged as a key player with a global market share of 15%.
For the period ended June 2024, the company clocked total revenues of Rs 1.09 crore and net profit of Rs 19 crore.
