October 9, 2024 – The Shiv Texchem IPO has officially opened for subscription, aiming to raise approximately ₹101.35 crores through a fresh issue of 61.06 lakh shares. The price band for the IPO is set between ₹158 and ₹166 per share, with investors able to bid in lots of 800 shares, requiring a minimum investment of ₹1,32,800 for retail investors.
Important Dates and Subscription Details
The subscription period for the Shiv Texchem IPO will close on October 10, 2024, with the allotment date scheduled for October 11, 2024. Shares are expected to list on the BSE SME platform around October 15, 2024.
Grey Market Premium (GMP)
As of today, the Shiv Texchem IPO GMP stands at approximately ₹40, indicating a potential listing premium of about 24% over the upper price band of ₹166. This figure reflects strong market sentiment and demand for the shares prior to their official listing.
Company Overview
Founded in 2005, Shiv Texchem specializes in importing and distributing hydrocarbon-based chemicals that serve as essential raw materials across various industries, including paints and coatings, printing inks, agrochemicals, and specialty polymers. The company boasts a diverse clientele that includes prominent firms such as Apcotex Industries Ltd., Hemani Industries Ltd., and Gujarat Fluorochemicals Ltd.
Financial Performance
Shiv Texchem has demonstrated robust financial growth, reporting total revenues of ₹1,536.69 crores for the fiscal year ending March 2024, marking a 37% year-on-year increase. The net profit surged to ₹30.11 crores, up from ₹16.02 crores in the previous fiscal year. In Q1 FY2025 alone, revenues reached ₹567.07 crores, with a profit after tax of ₹10.05 crores.
Use of Proceeds
The proceeds from this IPO will be allocated towards long-term working capital requirements and general corporate purposes, positioning Shiv Texchem for future growth.
Market Sentiment and Expectations
The current GMP of ₹40 indicates strong interest in Shiv Texchem’s shares among investors. However, it is crucial to note that GMP is not an official indicator and can fluctuate based on market conditions. Investors are encouraged to evaluate the company’s fundamentals rather than relying solely on GMP figures when making investment decisions.
Conclusion
As the subscription period progresses, potential investors should keep an eye on Shiv Texchem’s performance and market sentiment leading up to its listing date. With strong financials and a solid business model, the Shiv Texchem IPO presents an intriguing opportunity for those looking to invest in the chemical sector. Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and thoroughly read the red herring prospectus before placing bids.
