Citichem India Set to Launch Initial Public Offering on December 27
Citichem India, a prominent player in the chemicals and pharmaceutical supply chain sector, has announced its plans to launch an initial public offering (IPO) on December 27, 2023. The company aims to raise ₹12.60 crore through a fresh issue of 18,00,000 equity shares, priced at ₹70 per share with a face value of ₹10 each. The shares will be listed on the BSE SME platform, providing an exciting opportunity for investors looking to participate in the growth of a well-established company.
IPO Details and Structure
The IPO will open for public bidding on December 27 and will close on December 31, 2023. Investors can participate in the offering with a minimum lot size of 2,000 equity shares. Under the equity share allocation, 8.54 lakh shares will be allotted to non-institutional and retail individual investors, while 92,000 equity shares will be reserved for market makers. The lead manager for this issue is Horizon Management, and Kfin Technologies will serve as the registrar.
Utilization of Proceeds
The net proceeds from the IPO are earmarked for several strategic initiatives aimed at enhancing Citichem India’s operational capabilities. The funds will be utilized to meet capital expenditure for the acquisition of property, purchase transportation vehicles and accessories, and for general corporate purposes. This financial infusion is expected to bolster the company’s infrastructure, enabling it to meet the growing demands of its diverse clientele.
A Legacy of Excellence
Arif Esmail Merchant, the promoter and managing director of Citichem India, emphasized the company’s commitment to quality and reliability over its 25-year journey in the industry. "Our journey has been defined by a commitment to quality, reliability, and customer-centric solutions," he stated. Citichem India has built a strong reputation for delivering excellence across various sectors, including pharmaceuticals, food, adhesives, and more.
Merchant further elaborated on the company’s strategic plans, stating, "To address the growing demand and diversify our product portfolio, we are taking strategic steps to enhance our infrastructure." This includes acquiring new property, strengthening transportation capabilities, and expanding the distribution network. Such measures are designed to not only support current operations but also to prepare the company for future challenges.
Growth and Financial Performance
Citichem India specializes in the procurement, supply, and distribution of organic and inorganic chemicals, bulk drugs, and food chemicals, primarily catering to the pharmaceutical industry. The company’s product portfolio also includes specialty chemicals and intermediates that find applications across various industries, such as aluminum, steel, textiles, paper, dairy, paints, dyes, soap making, food, and adhesives.
In terms of financial performance, Citichem India has shown promising growth. For the fiscal year 2024, the company reported a revenue of ₹1,960.58 lakh, an EBITDA of ₹179.29 lakh, and a PAT of ₹111.83 lakh. As of June 2024, the company achieved a revenue of ₹109.75 lakh, with an EBITDA of ₹28.38 lakh and a PAT of ₹19.95 lakh. These figures reflect the company’s robust operational framework and its ability to generate consistent revenue streams.
Support from Horizon Management
Narendra Bajaj, Managing Director of Horizon Management Private, expressed enthusiasm about supporting Citichem India in its IPO journey. He highlighted the company’s consistent growth and strong commitment to quality in the chemicals and pharmaceutical supply chain sector. "The funds raised through this IPO will play an instrumental role in fueling the company’s growth strategy," he noted. The capital raised will enhance operational efficiency, expand distribution capabilities, and cater to the rising demand from both existing and new customers.
Conclusion
Citichem India’s upcoming IPO represents a significant opportunity for investors to engage with a company that has a proven track record in the chemicals and pharmaceutical supply chain sector. With a strategic focus on enhancing infrastructure and expanding its product portfolio, Citichem India is well-positioned to capitalize on future growth opportunities. As the IPO date approaches, market participants will be keenly observing how this offering unfolds and the potential it holds for both the company and its investors.