 "Citichem India shares post muted debut; list at Rs 70 apiece on BSE SME")
Citichem India IPO listing: Shares of Citichem India made a lacklustre debut on the BSE SME platform on Friday, January 3, 2025, following the completion of its initial public offering (IPO). Citichem India shares began trading on the BSE SME at Rs 70 apiece, the same as the issue price.
Citichem India IPO listing performance fell short of grey market expectations. Ahead of the listing, Citichem India shares were quoted at Rs 85 per share in the grey market, reflecting a premium of Rs 15 or 21.43 per cent over the issue price of Rs 70, revealed the sources tracking grey market activities.
The Citichem India IPO is a book-built issue of Rs 12.60 crore, comprising an entirely fresh issue of 18,00,000 equity shares. The SME offering was available at Rs 70 per share with a lot size of 2,000 shares. The SME offering received an overwhelming response from investors, getting oversubscribed by approximately 414 times on Tuesday, December 31, 2024.
The basis of allotment of Citichem India IPO shares was finalised on Wednesday, January 1, 2025.
KFin Technologies served as the registrar for the Citichem India IPO, while Horizon Management acted as the sole book-running lead manager for the issue.
Citichem India, in its Red Herring Prospectus (RHP), said that the proceeds would be used for capital expenditure to acquire property and purchase transportation vehicles and accessories. The company will further use the proceeds from the IPO for general corporate purposes and to cover issue-related expenses.
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About Citichem India
Citichem India primarily engages in buying, procuring, and supplying organic and inorganic chemicals, bulk drugs, and food chemicals to the pharmaceutical industry. The traded speciality chemicals and intermediates have wide applications in the aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap-making, pharmaceutical, food, and adhesive industries.