December 24, 2024
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SME IPO Guidance Review Advice at a Glance
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Technichem Organics IPO Review by Paresh Gordhandas, CA & Research Analyst.
The Company is mainly engaged in the business of manufacturing of a wide range of chemicals, Pyrazoles, Pyrazolones, Speciality Chemicals, Pigment & Dye Intermediates and Air Oxidation Chemistry that serves multiple industries, including pharmaceuticals, agriculture, coatings, pigments, dyes and others. The company has made strong profits and consistent turnover during last 3 years. It is good to see a SME IPO where you feel there is no accouting manipulation. The shares are offered at very reasonable valuation.
Thelead manager has strong track record of providing decent listings. From fundamental angle, the IPO has positive features. If the IPO can command premium in the grey market, then there are all chances of huge oversubscription and bumper listings.
IPO opens on 31 Dec. 2024, Closes on 3 Jan. 2025, Price Rs. 55, Lot of 2000 Shares
+ from fundamental angle: Apply
+ from grey market angle:
Citichem India IPO Review
Citichem India is engaged in the trading of organic and inorganic chemicals, bulk drugs, and, food chemicals to pharmaceutical industry. The traded specialty chemicals and intermediates have a wide application in aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food and adhesive Industry. The business (trading of various chemicals) has very low entry barrier and huge competition. Uptil 20222-23, the company has made negligible profits, which during the year 2023-24 shot up to Rs. 1.12 crore on turnover of Rs. 19.61 crore. Such sharp rise in the net profits during the year prior to the IPO is astonishing.
From fundamental angle, the IPO has low attraction. If the IPO can command premium in the grey market, it may get subscriptions, for which we cannot comment.
IPO opens on 27 Dec. 2024, Closes on 31 Dec. 2024, Price Rs. 70, Lot of 2000 Shares
+ from fundamental angle: May avoid
+ from grey market angle:
Newmalayalam Steel IPO Review
The company specializes in the manufacturing of galvanized pipes, tubes, and sheets, and has successfully established a strong brand presence in Kerala under the name ‘Demac Steel.’ Its products are widely used in households across the region. Galvanized pipes and tubes are particularly popular for roofing, as they help reduce heat and prevent leakage. Additionally, the galvanization process enhances the longevity and quality of the products by making them rust-resistant.
The IPO, with a net size of Rs. 39.66 crore, is modest and not excessively large. The HNI portion is relatively small at Rs. 2.99 crore, which suggests a strong potential for oversubscription. Khandwala Securities, the lead manager for the IPO, has built a reputation for delivering successful SME IPOs, with a notable track record of positive listings. The shares are priced at a price-to-earnings (PE) ratio of 26.67, which is considered reasonable and offers potential for listing gains as well as post-listing returns. While there is no current premium in the grey market for this IPO, a surge in subscription levels could drive prices higher following the listing.
IPO opens on 19 Dec. 2024, Closes on 23 Dec. 2024, Price Rs. 90, Lot of 1600 Shares
+ from fundamental angle: Apply
+ from grey market angle: So.So.
Identical Brains Studio IPO Review
Identical Brains Studios Limited is a leading provider of high-quality computer-generated visual effects (VFX) services. Specializing in enhancing the visual storytelling of films, web series, TV series, documentaries, and commercials, the company is dedicated to delivering exceptional VFX that captivate audiences and elevate content.
Over the years, Identical Brains Studios has contributed VFX services to a range of critically acclaimed projects. Some of these films have received multiple prestigious nominations, including two Filmfare OTT Awards nominations, one Filmfare Awards nomination, and a nomination for the Dadasaheb Phalke Awards, all in the category of Best Visual Effects.
The net size of the IPO is Rs. 19.95 crore, which is relatively small. The HNI portion stands at Rs. 2.99 crore, and significant oversubscription is expected in this category. The company has demonstrated a sharp increase in net profits for the year 2023-24, just before the IPO. However, assuming the projects were completed within the year, the profit surge appears to be genuine rather than inflated. The shares are offered at a reasonable valuation, with an attractive premium-to-offer price ratio, making it an appealing investment opportunity.
IPO opens on 18 Dec. 2024, Closes on 20 Dec. 2024, Price Rs. 54, Lot of 2000 Shares
+ from fundamental angle: Apply
+ from grey market angle: Apply
NACDAC Infrastrucutre IPO Review
NACDAC Infrastructure Limited, a construction firm specializing in multi-story buildings, has successfully completed 45 projects to date.
The company is raising Rs 9.24 crore through its IPO (net of market maker portion), with the retail portion likely to be oversubscribed after just 231 applications—indicating strong demand. The lead manager, GYR Capital Advisors, has a solid track record in managing listings, adding credibility to the offering.
However, the most notable aspect of this IPO is the sharp increase in the company’s profits for the fiscal year 2023-24. While NACDAC earned a modest net profit of Rs. 31 lakh in the previous two years, its profit has surged to Rs. 3.17 crore in 2023-24. This dramatic rise raises questions about sustainability. If the company can maintain this elevated profit level, the IPO could deliver strong returns to investors.
IPO opens on 17 Dec. 2024, Closes on 19 Dec. 2024, Price Rs. 35, Lot of 4000 Shares
+ from fundamental angle: May Apply
+ from grey market angle: Apply
Yash Highvoltage IPO Review
Incorporated in June 2002, Yash Highvoltage Limited specializes in the manufacturing and distribution of a wide variety of transformer bushings.
The company’s manufacturing facility, located in Vadodara, Gujarat, has an annual production capacity of 7,000 bushings. This includes 3,700 units of OIP bushings, 3,000 units of RIP bushings, and 300 units of high-current bushings. The factory is equipped with in-house quality testing facilities to ensure product excellence.
As of November 30, 2024, Yash Highvoltage employs 157 full-time staff members.
The size of the IPO is somewhat large and it will require 2505 applications for one time subscription of retail portion.
The fundamentals of this Gujarati company is impressive with very low debt equity ratio of 0.17. The offer price at upper price band is very reasonable and leaves room for listing gains.
At current GMP of Rs. 130 Vs offer price of Rs. 146, the GMP to price ratio is very strong. Huge oversubscription is expected.
The IPO opens on 12 December and closes on 16 December 2024.
+ from fundamental angle: Apply
+ from grey market angle: Apply
Rosmerta Digital IPO Review
Rosmerta Digital Services Limited, a subsidiary of Rosmerta Technologies Limited (RTL), was founded in 2021 with the goal of providing digitally-enabled services and innovative distribution channels for automotive components and accessories. Since its establishment, the company has quickly evolved into a leading provider of integrated solutions in the automotive sector, using cutting-edge technology to streamline complex processes for Original Equipment Manufacturers (OEMs), vehicle sales companies, and consumers.
IPO Details and Market Outlook
The IPO size stands at an impressive Rs. 206.33 crore, offering 14,036,000 shares. This is a significant large offering, especially when compared to recent IPO trends. With 4,667 applications, the retail portion of the offering is expected to be subscribed once.
Strong Business Model and Financial Growth
Rosmerta Digital Services is built around a novel and scalable business model that combines technology and service innovation. Over the past year, the company has seen a sharp increase in both topline and bottomline, highlighting its strong operational growth. If the company can maintain this robust performance in the coming year, the IPO could be considered reasonably priced, given its promising financial trajectory.
Potential for High Grey Market Interest
Given the strong growth and the impressive credentials of the lead managers for this IPO, there is a high likelihood of significant grey market interest. This, coupled with the company’s unique business model and recent performance, makes the IPO an attractive investment opportunity with the potential for strong market demand.
+ from fundamental angle: May Apply
+ from grey market angle: ?
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