The initial public offering of Shiv Texchem Ltd. opened for subscription on Tuesday, with the company looking to raise Rs 101.35 crore through the maiden issue. The IPO is an entirely fresh issue of 61.06 lakh shares amounting to Rs 101.35 crore. Investors can bid in the Shiv Texchem IPO between Oct. 8 and Oct. 10.
IPO Details
The price band for the IPO has been set at Rs 158–166 per share. Retail investors can 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.
The share allotment for Shiv Texchem IPO will be done on Oct. 11. This will be followed by the credit of Shiv Texchem Ltd. shares to the Demat accounts of successful bidders on Oct. 14. Refunds for the non-allottees will also be initiated on the same day.
Shares of Shiv Texchem are likely to list BSE SME, tentatively on Oct. 15.
IPO Grey Market Premium
Shiv Texchem IPO's grey market premium, was Rs 35 as of 10.30 a.m. on Oct. 8, indicating a listing premium of 21.08% over the issue price. As per InvestorGain, shares of Shiv Texchem could list around Rs 201 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.
Business And Financials
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.
Financials
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
Use Of Proceeds
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.
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