The Indian stock market is witnessing a flurry of activity as several companies rush to make their initial public offerings (IPOs), anticipating continued investor enthusiasm. Among the notable entries is Citichem India, which recently launched its IPO aiming to raise Rs 13 crore through the fresh equity sale of 18 lakh shares. The company has set the issue price at Rs 70 per share, allowing investors to bid for up to 2,000 shares per lot.
According to reports, Citichem India's shares traded at a strong grey market premium (GMP) of Rs 30, which reflects about 43% above the issue price, indicating positive sentiment among investors. This enthusiasm aligns with broader trends, as India's position as the fourth-largest agrochemical producer globally positions it as a significant player, with the country accounting for 16% of the world production of dyestuffs.
For the financial year ending June 2024, Citichem India reported revenues of Rs 1.09 crore and net profits of Rs 19 crore, showcasing promising financial metrics. The proceeds from the IPO will primarily support capital expenditures, including the acquisition of property and transportation vehicles, alongside general corporate purposes. The issue opened on December 27 and will remain available for subscription until December 31, with the final allotment expected on January 1, and shares likely to be listed on January 3.
Meanwhile, Sanathan Textiles has generated significant buzz with its IPO, which was oversubscribed nearly 40 times. Analysts attribute this high demand to the company’s reasonable valuation relative to its peers and their capacity to offer something for new investors to gain on listing day. The company's shares debuted at 32% above the IPO price, reflecting the strong market appetite for its offerings.
Sanathan Textiles has outlined ambitious growth plans supported by newly raised funds. The company intends to expand its production facility in Punjab, boosting its capacity to 1,500 tonnes per day by 2027. The IPO proceeds are earmarked for debt repayment and investments in its subsidiary, Sanathan Polycot, to facilitate diversification across several segments, enhancing its service to customers across multiple sectors.
Adding to these dynamic developments, Ganesh Consumer Products Ltd, which has established itself as a leader in packaged wheat-based products since its founding in 1936, has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI). The proposed IPO will comprise up to Rs 130 crore of new shares and 12.44 million equity shares through an offer-for-sale structure.
The face value of the shares is set at Rs 10, and the company is also considering raising additional funds through pre-IPO placements worth up to Rs 26 crore. The proceeds from the fresh issue are strategically planned for debt prepayments and for capital expenditures associated with establishing a new manufacturing unit located in Darjeeling, West Bengal. Currently, Ganesh Consumer Products boasts a diverse portfolio of 42 products and operates through more than 70,000 retail outlets, supported by seven manufacturing facilities across various states.
Industry experts project the IPO boom to persist through 2025, with total fundraising expected to surpass Rs 2 lakh crore. The rising profile of Indian companies on the market reflects improved investor sentiment and interest, amid favorable conditions for businesses seeking to expand their capital base.
With the IPO market heating up, investors are closely monitoring upcoming offers, evaluating prospects, and anticipating how these businesses might fare post-listing. The recent entries underline the growing confidence in the Indian economy and the capacity of its companies to adapt and thrive under competitive market conditions.
