Shiv Texchem IPO: All You Need to Know – Issue Date, GMP, and Key Details
Shiv Texchem Limited, a key player in the import and distribution of hydrocarbon-based chemicals, is set to launch its SME IPO. This offers investors a chance to participate in the growth of a company that supplies essential raw materials to industries like paints, pharmaceuticals, and agrochemicals. Here’s everything you need to know about the Shiv Texchem IPO, from issue dates to GMP and financial insights.
Shiv Texchem IPO Key Details
- IPO Opening Date: October 8, 2024
- IPO Closing Date: October 10, 2024
- Allotment Finalization Date: October 11, 2024
- Listing Date: October 15, 2024 (BSE SME)
- IPO Price Band: ₹158 to ₹166 per share
- Minimum Lot Size: 800 shares
- Minimum Retail Investment: ₹132,800
- Minimum HNI Investment: ₹265,600 (2 lots, 1,600 shares)
- Issue Size: ₹101.35 crore (Fresh Issue of 61.06 lakh shares)
About Shiv Texchem Limited
Established in 2005, Shiv Texchem Limited imports and distributes hydrocarbon-based secondary and tertiary chemicals, crucial raw materials for multiple industries, including:
- Paints & Coatings
- Printing Inks
- Agrochemicals
- Pharmaceuticals
- Specialty Polymers
- Industrial Chemicals
The company sources these chemicals from international markets such as China, Taiwan, South Korea, Kuwait, Qatar, the USA, the Netherlands, Belgium, and Italy. Shiv Texchem has grown its product portfolio significantly, adding new products every year, and expanded its customer base to over 650 clients by FY 2024.
Product and Market Expansion
Between FY 2022 and FY 2024, the company's product line expanded from 21 to 39 products, and its customer base grew from 400 to 650 customers. Key clients include Apcotex Industries Limited, Hemani Industries Limited, and Gujarat Fluorochemicals Limited. This diverse product and client base ensures the company’s strong presence in various industries.
Competitive Strengths
- Comprehensive Business Model: Shiv Texchem provides integrated supply chain solutions and maintains a well-diversified portfolio of products.
- Strong Customer Relationships: The company has long-standing partnerships with its customers, ensuring reliable demand.
- Experienced Management Team: The leadership team brings extensive knowledge of the hydrocarbon-based chemical industry.
- Financial Stability: The company has demonstrated consistent growth in revenue and profits.
Shiv Texchem Limited Financial Overview
Shiv Texchem has shown solid financial performance over the last few years, with significant revenue growth and a rise in profit after tax (PAT). Between FY 2023 and FY 2024, the company’s revenue increased by 37%, and PAT surged by 88%.
| Period Ended | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | ₹85,483.43 lakh | ₹79,868.05 lakh | ₹60,234.98 lakh | ₹42,543.57 lakh |
| Revenue | ₹56,707.83 lakh | ₹1,53,668.79 lakh | ₹1,11,866.98 lakh | ₹86,547.46 lakh |
| Profit After Tax | ₹1,005.89 lakh | ₹3,011.30 lakh | ₹1,602.72 lakh | ₹1,386.48 lakh |
| Net Worth | ₹20,293.58 lakh | ₹19,287.69 lakh | ₹12,276.39 lakh | ₹10,673.68 lakh |
| Reserves | ₹20,080.25 lakh | ₹19,074.36 lakh | ₹12,116.39 lakh | ₹10,513.68 lakh |
| Borrowings | ₹27,085.63 lakh | ₹29,665.25 lakh | ₹32,914.39 lakh | ₹12,034.33 lakh |
Objects of the Shiv Texchem IPO
The funds raised through the IPO will be used for:
- Meeting Long-term Working Capital Requirements: The company plans to enhance its working capital to support growth.
- General Corporate Purposes: Funds will be used to strengthen Shiv Texchem’s overall corporate infrastructure and operations.
Conclusion
The Shiv Texchem IPO offers a compelling investment opportunity for those interested in the chemical distribution industry. With a diverse product portfolio, robust financial growth, and an expanding customer base, the company is well-positioned to scale further. The IPO opens on October 8, 2024, and closes on October 10, 2024, giving investors a chance to get in early on a company that is essential to multiple industries.
As always, investors should carefully assess the financials and overall market conditions before making any investment decisions.