Shiv Texchem Limited is coming up with an IPO with a fresh issue of 61,05,600 shares worth INR 101.35 crores. The company aims to fund the long-term working capital requirement and general corporate purposes.

Shiv Texchem IPO – Important Dates

Read more about Shiv Texchem Limited IPO GMP

Shiv Texchem Limited IPO  – Company Profile

The company primarily imports and distributes hydrocarbon-based chemicals of the product family viz. Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols Phenolic, Ketones, and Isocyanates, which is critical raw materials and inputs and have applications across a wide spectrum of industries like paints and coatings, printing inks, agro-chemical products, specialty polymers, pharmaceuticals products and specialty industrial chemicals.

The company’s role involves sourcing the chemicals from international producers and suppliers, redistributing them to domestic industries, and ensuring sufficient and timely supply to manufacturers. By handling the import and distribution of these essential raw materials, they support various industries in accessing high-quality chemicals for their manufacturing processes. 

Shiv Texchem Ltd IPO Fundamental Analysis 

Shiv Texchem demonstrates strong revenue growth, improving profitability, a solid equity base, and reduced financial risk.

1. Revenue Analysis:

• Growth Trend:
  • Revenue increased from ₹1,11,759.06 lakhs in FY2023 to ₹1,53,490.41 lakhs in FY2024, marking a significant growth of 37.3%.
  • For Q1 FY2025, revenue was ₹56,604.99 lakhs, indicating sustained growth momentum.

2. Expense Analysis:

• Expense Growth:
  • Expenses grew from ₹1,09,712.61 lakhs in FY2023 to ₹1,49,584.22 lakhs in FY2024 but at a slightly lower rate compared to revenue growth.
  • The efficient management of expenses contributed to higher profitability.

3. Profitability Metrics:

• Profit After Tax (PAT):
  • PAT rose from ₹1,602.72 lakhs to ₹3,011.30 lakhs, showcasing an impressive 87.9% increase.
• Earnings Per Share (EPS):
  • Diluted EPS improved from ₹100.17 to ₹165.42, reflecting strong profitability and value creation for shareholders.

4. Equity Position:

• Equity Growth:
  • Equity increased from ₹12,276.39 lakhs to ₹19,287.69 lakhs (a 57.1% increase), indicating a strengthening of the company’s capital base.
• NAV per Share:
  • NAV increased from ₹767.27 to ₹904.11, indicating improved asset value per share.

5. Return on Net Worth (RONW):

• Performance:
  • RONW improved from 13.97% to 19.08%, demonstrating the effective use of equity capital to generate profits.

6. Financial Health Indicators:

• Debt-Equity Ratio:
  • The ratio decreased from 2.68 to 1.54, signaling reduced leverage and lower financial risk.
• Current Ratio:
  • Remained stable at around 1.45, indicating adequate short-term liquidity to meet obligations.

7. Overall Financial Strength:

• Total Assets:
  • Increased from ₹60,234.98 lakhs to ₹79,868.05 lakhs, reflecting growth in asset base.
• Total Liabilities:
  • Also increased from ₹47,958.59 lakhs to ₹60,580.36 lakhs, but at a slower rate than assets, indicating a healthier asset-liability structure.

Shiv Texchem IPO Financial Analysis

Shiv Texchem Limited IPO Peer Comparison

There are no listed companies whose business operations are similar to that of Shiv Texchem or are of comparable size to that of the Company. Accordingly, it is impossible to provide an industry comparison. 

Shiv Texchem Ltd IPO Objective

The main objective of Shiv Texchem is to utilize INR 75 crores for long-term working capital due to business expansion and will allocate the remaining funds for general corporate purposes, including operational expenses and project development costs.

1. To meet the long-term working capital requirements: The increase in working capital requirements of the company is on account of expansion in business operations in forthcoming period(s) and hence the Company envisages an increase in its working capital requirements. The company plans to utilise INR 75 crores for the said purpose. 

2. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.

Shiv Texchem IPO Risks And Challenges

Shiv Texchem’s revenue heavily relies on a select group of products, and any inability to offer these could negatively impact its operations. Dependence on specific industries and import substitution policies also pose risks, along with potential harm from employee misconduct.

1. The company derives a significant part of its revenue from a group of select products. If the company fails to offer any of these products, the business, financial condition, and results of operations may be adversely affected. 

2. The operations are heavily dependent on industries where products are supplied, which include paints and coatings, printing inks, agrochemical products, specialty polymers, pharmaceuticals products, specialty industrial chemicals, etc. 

3. Any positive development in import substitution policies may lead to a decrease in the import capabilities, decreasing the business opportunities and impacting the cash flow.

4. The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect the financial condition, results of operations, and reputation.

Shiv Texchem Ltd IPO – Industry & Market Potential

Imports have played a major role in meeting the domestic demand for petrochemicals. Although the petrochemical refining sector in India has witnessed capacity addition, it was mainly focused on adding capacity to fuel products and products like polymers and olefins. India’s vibrant manufacturing sector comprising thousands of companies manufacturing numerous products requires a wide range of petrochemical components as input materials as well as intermediates.

Despite the advances made in domestic petrochemical manufacturing, India still does not produce the entire range of petrochemical products. Given the wide range of petrochemical products needed by the industry, together with the limitations in domestic petrochemical production scenario import of petrochemicals is expected to continue to play a key role in meeting the input /intermediate product demand coming from the manufacturing sector. 

Shiv Texchem Limited IPO – Type of Offer

Shiv Texchem Limited is sized at INR 101.35 crores, featuring a fresh issue of 61,05,600 shares. The company plans to use the proceeds to meet its long-term working capital requirements and general corporate purposes.

Shiv Texchem IPO Offer Size

The offer size of Shiv Texchem Limited’s IPO is INR 101.35 crores, with a fresh issue of 61,05,600 shares. The funds will be used to meet the company’s long-term working capital requirements and for general corporate purposes.

Shiv Texchem Limited IPO Allotment Structure

Shiv Texchem Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,22,400 shares are reserved for market makers. 

 ● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,22,400 shares, are reserved for market makers. `

How to apply for the Shiv Texchem IPO?

To apply for the Shiv Texchem Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Shiv Texchem Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Shiv Texchem Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Shiv Texchem IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Shiv Texchem Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Shiv Texchem Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Shiv Texchem Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Shiv Texchem Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Shiv Texchem Ltd IPO Offer Registrar

The registrar for the Shiv Texchem Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited 

C-101, 1st Floor, 247 Park, L.B.S. Marg, 

Vikhroli (West), Mumbai – 400 083, Maharashtra, India. 

Email ID: [email protected] 

Website: www.linkintime.co.in

 Shiv Texchem IPO  – FAQs

1. What is the allotment date of the Shiv Texchem IPO? 

The allotment date of the Shiv Texchem Limited IPO is October 11, 2024. 

2. What is the price band of the Shiv Texchem IPO? 

The price band of the issue is INR 158 -166 per share. 

3. What is the size of the Shiv Texchem IPO? 

The offer size of Shiv Texchem Limited’s IPO is INR 101.35 crores, with a fresh issue of 61,05,600 shares. The funds will be used to meet the company’s long-term working capital requirements and for general corporate purposes.

4. What is the listing date of the Shiv Texchem IPO? 

The listing date of Shiv Texchem Limited’s IPO is October 15, 2024.