Shiv Texchem IPO Overview
The Shiv Texchem Limited IPO has captured the attention of investors as its subscription period commenced on October 8 and is set to conclude on October 10. The company has established a price band for its IPO, ranging from ₹158 to ₹166 per share, with a nominal face value of ₹10. Investors have the opportunity to participate in the offering with a minimum bid of 800 shares.
Business Focus and Market Position
Shiv Texchem Limited specializes in the importation and distribution of hydrocarbon-based chemicals, focusing on a wide array of product categories, including Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols, Phenolics, Ketones, and Isocyanates. These chemicals serve as essential raw materials that find application across diverse industries, such as paints and coatings, printing inks, agro-chemicals, specialty polymers, pharmaceuticals, and specialty industrial chemicals. This multifaceted approach positions Shiv Texchem as a critical player in the chemical distribution market.
Company Leadership and Corporate Structure
The leadership team behind Shiv Texchem includes prominent promoters such as Vikas Pavankumar, Hemanshu S. Chokhani, Pavankumar Sanwaria Realty Private Ltd, and Hemanshu Syntex Private Ltd. Notably, the company distinguishes itself as there are no publicly listed entities with comparable business operations or sizes, making direct industry comparisons challenging, as highlighted in the red herring prospectus (RHP).
Financial Performance and Growth
The financial trajectory of Shiv Texchem Ltd showcases significant growth between March 31, 2023, and March 31, 2024, marked by a substantial 37% increase in revenue alongside a remarkable 88% rise in profit after tax (PAT). Such positive financial indicators reflect the company’s robust operational strategy and the growing demand for its chemical products.
IPO Subscription Insights
Observing the Shiv Texchem IPO’s subscription performance, the offering has garnered overwhelming interest, achieving a subscription status of 152.85 times by its third day. Specifically, the retail portion was subscribed 61.01 times, while the Non-Institutional Investors (NII) portion was booked an impressive 455.23 times, and Qualified Institutional Buyers subscribed 86.70 times. In total, bids have been placed for 62,068,800 shares against only 4,060,800 shares available, showcasing a strong demand from the investment community.
IPO Details and Utilization of Funds
Shiv Texchem’s IPO is valued at ₹101.35 crore and involves a fresh issuance of 6,105,600 equity shares with no “offer for sale” component. The funds raised from this IPO will primarily be directed towards meeting long-term working capital requirements and general corporate purposes, signifying the company’s commitment to sustainable growth.
Registrar and Management Team
Link Intime India Private Ltd serves as the registrar for the Shiv Texchem IPO, while the book-running lead manager is Vivro Financial Services Private Limited. Rikhav Securities has taken on the role of market maker for the IPO, thereby enhancing the offering’s liquidity and market presence.
Grey Market Premium and Expected Listing
As of today, the Grey Market Premium (GMP) for Shiv Texchem’s IPO stands at +35, indicating a favorable outlook for the stock upon listing. Based on this premium and the upper end of the IPO price band, analysts predict an estimated listing price of approximately ₹201 per share, representing a potential gain of 21.08% over the IPO price. This anticipated performance suggests strong market confidence in Shiv Texchem’s future growth trajectory.
Conclusion
Investors are advised to closely monitor the developments surrounding the Shiv Texchem IPO, as strong subscription numbers and favorable GMP indicate robust investor sentiment. With a strategic market position and solid financial performance, Shiv Texchem is poised for a successful entry into the public markets.
