Citichem India
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Dec 2024 – 31 Dec 2024
- Listing date
- 03 Jan 2025
- Face value
- ₹1 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Listing at
- BSE
- Total issue size
- ₹12.60 Cr
- Market cap at offer price
- ₹47.60 Cr
- Promoter holding
- 83.25% → 61.21% pre-issue → post-issue
- ISIN
- INE0A8401016
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Horizon Management Pvt.Ltd.
- Registered office
- 7, Floor-1, Plot-96, Dharam Jyoti, Kazi Sayed Street, Khand Bazar, Masjid Station, Mandvi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 92,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.24 | 1.17 |
| P/E (×) | 31.25 | 59.83 |
| Market cap | — | ₹47.60 Cr |
Key performance indicators
- Return on net worth
- 15.42%
- ROCE
- 21.47%
- Debt / equity
- 0.15
- PAT margin
- 5.70%
- NAV per share
- ₹14.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Citichem India
Citichem India Limited was incorporated as 'Citichem Alkalies (Bombay) Private Limited' on March 18, 1992, and converted to a public limited company in 1999, subsequently renamed to 'Citichem India Ltd'. The company is engaged in buying, procuring, and supplying organic and inorganic chemicals, bulk drugs, and food chemicals to the pharmaceutical industry. The traded specialty chemicals and intermediates have wide applications across multiple sectors including aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food and adhesive industries. The company supplies food preventives and chemicals under its own brand name through a distribution team ensuring safe delivery of bulk supplies. Operations are primarily sourced from the leased registered office in Mumbai.
Company Analysis
from RHPCitichem India Limited is a trading company of organic and inorganic chemicals, bulk drugs, and food chemicals primarily for the pharmaceutical, aluminium, steel, textiles, paper, dairy, paints, dyes, soap, food and adhesive industries.
Citichem India Limited was incorporated as 'Citichem Alkalies (Bombay) Private Limited' on March 18, 1992, and converted to a public limited company in 1999, subsequently renamed to 'Citichem India Ltd'. The company is engaged in buying, procuring, and supplying organic and inorganic chemicals, bulk drugs, and food chemicals to the pharmaceutical industry. The traded specialty chemicals and intermediates have wide applications across multiple sectors including aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food and adhesive industries. The company supplies food preventives and chemicals under its own brand name through a distribution team ensuring safe delivery of bulk supplies. Operations are primarily sourced from the leased registered office in Mumbai.
Objects of the Issue
- Capital expenditure for acquisition of Property ₹ 360.00 Lakhs p.22
- Purchase of Transportation Vehicles and Accessories ₹ 469.10 Lakhs p.22
- General Corporate Purposes ₹ 279.70 Lakhs p.22
- Capital expenditure for acquisition of Property ₹360.00 Lakhs p.78
- Purchase of Transportation Vehicles and Accessories ₹469.10 Lakhs p.80
- General Corporate Purposes ₹279.70 Lakhs p.81
- To meet Issue expenses ₹151.20 Lakhs p.81
Issue Structure
- Total Issue
- ₹ 1,260.00 Lakhs
- Fresh Issue
- 18,00,000 Equity Shares of Rs. 10/- aggregating to Rs. 1,260.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹ 70/- per Equity Share (including share premium of ₹ 60/-)
- Lot Size
- 2,000 Equity Shares
- Face Value
- ₹ 10/-
Business Model
The company generates revenue through the buying, procuring, and supplying of organic and inorganic chemicals, bulk drugs, and food chemicals. Products are sold to various industries including pharmaceuticals, aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food and adhesive sectors. The company also supplies food preventives and chemicals under its own brand name.
Business Segments
SWOT Analysis
- • Experienced promoter with 25+ years in chemical sourcing and supply(p.108)
- • Scalable business model based on customer-centric, order-driven operations(p.108)
- • Focus on quality and innovation in product procurement(p.108)
- • Location advantage reducing transportation costs(p.108)
- • Strong supplier relationships enabling timely sourcing(p.109)
- • Established customer base with repeat orders(p.109)
- • Strategic location advantage with proximity to suppliers, customers, and transportation networks(p.111)
- • Long-established market presence with 30+ years of operations and strong customer/supplier relationships(p.114)
- • Dedicated marketing team with deep market knowledge and customer understanding(p.114)
- • Strong customer and supplier relationships built over promoter's 30+ years in the industry(p.114)
- • 25+ years of combined promoter experience in chemicals trading(p.180)
- • Strategic shift to high-margin specialty chemicals improving profitability(p.184)
- • Significant improvement in EBITDA margin within two years(p.175)
- • Low leverage ratio well below industry thresholds(p.175)
- • Established long-standing client relationships in pharmaceutical industry(p.180)
- • Majority revenue from few customers creates concentration risk(p.31)
- • Significant reliance on few suppliers for raw materials(p.33)
- • High litigation exposure with material financial implications(p.29)
- • Negative operating cash flows in recent periods(p.32)
- • No insurance coverage for business risks(p.32)
- • Rented premises with no ownership of key offices(p.32)
- • No registered trademarks for the business(p.31)
- • Delayed statutory filings with RoC(p.30)
- • High working capital requirement(p.110)
- • Lack of employee knowledge(p.110)
- • Family business structure(p.110)
- • Heavy dependence on suppliers(p.110)
- • Significant concentration in top customer revenues(p.105)
- • High working capital requirement straining liquidity and cash flow(p.111)
- • Lack of industry-specific knowledge and expertise among employees(p.111)
- • Family business structure creating governance and succession planning risks(p.111)
- • Heavy dependence on limited number of suppliers for key raw materials(p.111)
- • No insurance coverage against business risks and hazards(p.115)
- • Severe liquidity management issues with extreme receivables and payables cycles(p.175)
- • High concentration of trade payables with related party entities(p.176)
- • Massive contingent liabilities from bank guarantees(p.190)
- • Significant outstanding income tax demands across multiple years(p.197)
- • Extensive litigation with significant credit defaults and cheque dishonor cases(p.197)
- • Expanding chemical industry in India with diverse applications(p.21)
- • India's strong global position in chemical production and exports(p.21)
- • Diversified end-market applications for specialty chemicals(p.21)
- • Utilization of IPO proceeds for capacity expansion(p.22)
- • Expand product composition and range(p.110)
- • Increase operational efficiency(p.110)
- • Target unexplored and new markets(p.109)
- • Scale branding and digital activities(p.110)
- • Implement asset-light warehousing model(p.110)
- • Growing Indian chemical industry with CAGR of 11-12% by 2027(p.101)
- • Development of new product compositions to address emerging market needs(p.111)
- • Enhancement of operational efficiency through advanced technologies and supply chain streamlining(p.111)
- • Expansion of market share in unorganized chemical industry sector(p.114)
- • Expand market presence across Indian chemical trading industry(p.180)
- • Diversify procurement sources for supply chain resilience(p.180)
- • Capitalize on pharmaceutical industry growth with specialty chemical focus(p.180)
- • High competition from established players with greater resources(p.36)
- • Dependence on availability and pricing of raw materials(p.33)
- • Vulnerability to economic downturns affecting demand(p.38)
- • Regulatory and compliance risks in evolving environment(p.41)
- • Currency exchange rate fluctuations affecting operations(p.40)
- • India's economic and political uncertainties(p.43)
- • Hazardous nature of chemicals requiring expert handling(p.31)
- • Tough competition in chemicals sector(p.110)
- • Low margin business environment(p.110)
- • Significant customer concentration risk(p.105)
- • Dependence on external suppliers for inventory(p.106)
- • Intense competition with pricing pressures and need for continuous innovation(p.111)
- • Low-margin nature of business limiting profitability and growth investment capacity(p.111)
- • Stringent chemical industry regulations and compliance requirements(p.116)
- • Income tax demand of Rs. 21.33 crores from assessment authorities(p.171)
- • Extensive criminal litigation involving directors and promoters for fraud and cheating(p.200)
- • GST investigation alleging Rs. 34.38 crore inadmissible ITC fraud(p.202)
- • Regulatory action under SARFAESI Act with asset possession on loan default(p.192)
- • Sector-wide competition from existing and potential market players(p.189)
- • Industry cyclicality and commodity price volatility affecting margins(p.181)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Arif Esmail Merchant | Promoter | 37.85% | 27.83% |
| Mr. Hashim Arif Merchant | Promoter | 20.40% | 15.00% |
| Mrs. Fozia Arif Esmail Merchant | Promoter | 10.00% | 7.35% |
| Mrs. Saima Hashim Merchant | Promoter | 10.00% | 7.35% |
| Mr. Arif Esmail Merchant | Promoter | 37.85% | 27.83% |
| Mrs. Fozia Arif Esmail Merchant | Promoter | 10.00% | 7.35% |
| Mr. Hashim Arif Merchant | Promoter | 20.40% | 15.00% |
| Mrs. Saima Hashim Merchant | Promoter | 10.00% | 7.35% |
| Mr. Nadeem Ismail Rokadia | Promoter Group | 2.50% | 1.84% |
| Mr. Fairoz Rokadia Ismail | Promoter Group | 2.50% | 1.84% |
| Mr. Arif Esmail Merchant | Promoter | 37.85% | 27.83% |
| Mr. Hashim Arif Merchant | Promoter | 20.40% | 15.00% |
| Mrs. Fozia Arif Merchant | Promoter | 10.00% | — |
| Mrs. Saima Hashim Merchant | Promoter | 10.00% | — |
| Arif Esmail Merchant | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.