Shiv Texchem IPO Launches: Details of Subscription, Price Band, and Industry Role

The initial public offering (IPO) of Shiv Texchem Ltd. has opened for public subscription on October 8, 2024. The company is aiming to raise approximately Rs 101.35 crore through this fresh issue of 61.06 lakh shares. The subscription period is set from October 8 to October 10.

Authorities have set the IPO price band at Rs 158 to Rs 166 per share. Retail investors are required to bid with a minimum lot size of 800 shares, translating to an investment of Rs 1,32,800 at the upper price band.

Link Intime India Pvt. has been appointed as the registrar for this IPO, while Vivro Financial Services Ltd. serves as the book-running lead manager. Rikhav Securities Ltd. has been designated as the market maker.

Following the subscription period, the allotment of shares is scheduled for October 11. Successful bidders are expected to see the credit of shares in their Demat accounts by October 14, while refunds for unsuccessful bids are to be initiated simultaneously.

The company’s shares are anticipated to list on the BSE SME exchange, with a tentative listing date set for October 15.

As per market sources, the grey market premium (GMP) for Shiv Texchem’s IPO stood at Rs 35 as of October 8, indicating an estimated listing premium of about 21.08% over the issue price. Nonetheless, it’s crucial to note that GMP is speculative and does not guarantee the official listing price.

Founded in 2005, Shiv Texchem Ltd. is an established importer and distributor specializing in hydrocarbon-based secondary and tertiary chemicals. These chemicals are integral raw materials across various sectors like paints, coatings, printing inks, agrochemicals, and speciality polymers.

The company serves prominent clients, including Apcotex Industries Ltd., Hemani Industries Ltd., and Gujarat Fluorochemicals Ltd. For the financial year ending March 2024, Shiv Texchem reported a 37% increase in revenue to Rs 1,536.69 crore and a profit rise from Rs 16.02 crore in the previous fiscal to Rs 30.11 crore. In addition, the first quarter results ending June 2024 showed revenues of Rs 567.07 crore and profits after tax of Rs 10.05 crore.

Proceeds from the IPO are earmarked for funding working capital needs and general corporate purposes.

This fresh issue represents Shiv Texchem’s strategic move to enhance its market footprint and operational capacities across diverse industries that rely heavily on chemical products.