Shiv Texchem IPO Subscribed More Than 150 Times; Check GMP, Allotment Date

The initial public offering of Shiv Texchem Ltd. which opened for subscription on Tuesday concluded on Thursday, October 10. The company is looking to raise Rs 101.35 crore through the maiden issue, which is an entirely fresh issue of 61.06 lakh shares amounting to Rs 101.35 crore.

The SME issue was subscribed 3.79 times on Day 1 and 11.58 times on Wednesday (Day 2). On its final day, the SME IPO of Shiv Texchem was subscribed more than 150 times.

The IPO was subscribed 156.55 times on Thursday

• Qualified Institutions: 86.70 times

• Non-Institutional Buyers: 455.58 times

• Retail Investors: 68.27 times

Shiv Texchem IPO's grey market premium, was Rs 46 as of 6:00 p.m. on October 10, indicating a listing premium of 27.71% over the issue price. As per InvestorGain, shares of Shiv Texchem could list at around Rs 212 apiece compared to the upper price band of Rs 166.

Investors should note that GMP is not an official listing price and can be highly speculative.

The price band for the IPO had been set at Rs 158–166 per share. Retail investors could bid in the IPO with a minimum lot size of 800 shares, amounting to Rs 1,32,800.

Link Intime India Pvt. is the registrar for the Shiv Texchem IPO. The company has appointed Vivro Financial Services Ltd. as the book-running lead manager and Rikhav Securities Ltd. as the market maker for the issue.

As per the company's red herring prospectus, 19% of the 61,05,600 shares offered were reserved for QIBs, 14.26% for NIIs, 33.25% for Retail investors, and 28.49% for Anchor investors.

The share allotment for Shiv Texchem IPO will be done on October 11. This will be followed by the credit of Shiv Texchem Ltd. shares to the Demat accounts of successful bidders on October 14. Refunds for the non-allottees will also be initiated on the same day.

Shares of Shiv Texchem will be listed at BSE SME, with a tentative listing date of October 15.

Shiv Texchem Ltd. is an importer and distributor of hydrocarbon-based secondary and tertiary chemicals, a key raw material for many industries.

Established in 2005, the company deals with chemicals like acetyls, alcohols, ketones, isocyanates, aromatics, nitriles, monomers, and glycols phenolic. Shiv Texchem caters to multiple industries, including paints and coatings, printing inks, agrochemicals, speciality polymers, and more.

Shiv Texchem’s clientele includes Apcotex Industries Ltd., Hemani Industries Ltd., and Gujarat Fluorochemicals Ltd.

The company's revenue rose 37% year-on-year to Rs 1,536.69 crore in the financial year ended March 2024. The company's profit surged to Rs 30.11 crore from Rs 16.02 crore in the previous fiscal. In the first quarter ended June 2024, the company reported a revenue of Rs 567.07 crore and profit after tax of Rs 10.05 crore

Shiv Texchem will use the proceeds from the IPO to fund working capital requirements and for general corporate purposes.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.