Shivam Chemicals Limited IPO Review
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Shivam Chemicals IPO 

Shivam Chemicals Limited consists of a fresh issue of 45,87,000 shares worth INR 44 each, totaling INR 2,018.28 lakhs. The company intends to allocate funding for working capital, invest in subsidiary Shivam Chemicals & Minerals Pvt Ltd., and cover general corporate purposes. 

Shivam Chemicals Ltd IPO – Important Dates

Shivam Chemicals  IPO DateApril 23, 2024 to April 25, 2024
Shivam Chemicals  IPO Listing DateApril 30, 2024
Shivam Chemicals  IPO PriceINR 44 per share
Shivam Chemicals  IPO Lot Size3000 shares
Shivam Chemicals  IPO Total Issue SizeINR 2,018.28 lakhs
Shivam Chemicals  IPO Basis of AllotmentApril 26, 2024
Shivam Chemicals  IPO Initiation of RefundsApril 29, 2024
Shivam Chemicals  IPO Credit of Shares to DematApril 29, 2024
Shivam Chemicals  IPO Issue TypeFixed Price Issue IPO
Shivam Chemicals  IPO Listing AtBSE SME 

Shivam Chemicals Limited IPO  – Company Profile

Shivam Chemicals, a hydraulic lime manufacturer, distributes animal feed supplements through a vast Indian network. They supplied over 2.50 Lakh metric tons, reflecting financial significance, evolving from feed supplement trading to manufacturing via a 100% subsidiary. 

Their wholly-owned subsidiary company, Shivam Chemicals and Minerals Private Limited, situated in Dahej, Gujarat, has a manufacturing capacity of 60,000 MT and specializes in producing Hydrated Lime (Calcium Hydroxide). 

They distribute poultry feed supplements, Di-Calcium Phosphate, Magnesium Oxide, and Limestone Powder. Its subsidiary, Shivam Chemicals and Minerals Pvt Ltd, manufactures Hydrated Lime. As of December 31, 2023, the consolidated workforce comprises 25 employees. 

Shivam Chemicals IPO Review

Shivam Chemical’s financial analysis reveals a mixed performance. Revenue trended downwards initially before stabilizing. Profit decreased significantly, with EPS following suit. Equity showed steady growth. Return on Net Worth (RoNW) notably changed despite increasing assets. 

  • Revenue Trend: The revenue decreased from ₹17,794.49 lakhs in March 2022 to ₹15,651.68 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR10,693.32 lakhs, falling short of last year’s benchmark. 
  • Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. 
  • Profitability: The profit after tax (PAT) has significantly decreased from ₹443.70 lakhs in March 2022 to ₹70.79 lakhs by December 2023. This decline in profitability could be a source of concern for investors. 
  • Earnings per Share (EPS): The diluted EPS has fallen from ₹3.58 in March 2022 to ₹0.57 by December 2023, reflecting lower earnings per share for investors.
  • Return on Net Worth (RoNW): The RoNW has increased from 45.68% to 5.06%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
  • Financial Position: Total assets have increased, suggesting potential business growth. 

Shivam Chemicals Limited IPO Fundamental Analysis

ParticularAs of 31 March 2022As of 31 March 2023As of 31 December 2023
Revenue (₹ in lakhs)17,794.4915,651.6810,693.32
Equity (₹ in lakhs)971.411,328.851,399.64
Expenses (₹ in lakhs)17,200.0415,170.0410,572.31
Profit and Loss After Tax (₹ in lakhs)443.70357.4470.79
Diluted EPS only (₹)3.582.880.57
Return on Net Worth (%)45.6826.905.06
NAV per Equity Share (₹)10.7211.29
Total Assets (in lakhs)2,368.793,117.683,881.92
Total Liabilities (in lakhs)1,397.381,788.832,482.28

Shivam Chemicals Ltd IPO Peer Comparison

Shivam Chemicals Limited leads with robust metrics, overshadowing Narmada Agrobase Limited and Godrej Agrovet, highlighting its promising growth trajectory. 

CompanyCMP(₹ in lakhs)Face Value (₹)P/E (₹)EPS  (₹)RoNW (%)Revenue from Operations (₹)
Shivam Chemicals Limited441015.262.8826.9015,651.68
Narmada Agrobase Limited23.51048.960.484.115,002.60
Godrej Agrovet539.41034.3315.7110.779,37,368

Shivam Chemicals IPO Objective

The main objective of Shivam Chemicals Limited is to fund working capital and invest in subsidiaries to enhance capabilities. 

  1. Funding Working capital requirements: The company intends to utilize INR 705.00 lakhs of the Net Proceeds for working capital requirements during Fiscal 2024-25. The remaining needs will be met through debt facilities and owned funds, as certified by the Statutory Auditors. 
  2. Investment in Subsidiary Co. M/s Shivam Chemicals & Minerals Pvt Ltd. (“SCMPL”) for financing the augmentation of its working capital requirement: The company plans to utilize INR 562.00 lakhs of the Net Proceeds for further investment in its subsidiary, Shivam Chemicals & Minerals Pvt. Ltd., primarily for equity infusion to support working capital needs. 
  3. General Corporate Purpose: The company will use the balance fund of INR 501.28 lakhs, constituting 24.84% of Gross Proceeds, for general corporate purposes, strategic initiatives, branding, facility refurbishment, and other approved uses.

Shivam Chemicals Limited IPO Risks And Challenges

Shivam Chemicals Limited’s risk includes dependency on fluctuating revenue from distributing products, operational complexities with its manufacturing subsidiary, and limited capacity utilization, which indicate potential profitability challenges and financial strain. 

  • The company’s revenue primarily comes from distributing animal feed nutrients and chemical products, with fluctuations observed over the years. Any disruption in manufacturing could adversely impact business performance. 
  • Shivam Chemicals Limited, focused on trading, faces operational complexities with its manufacturing subsidiary. Success hinges on market demand and competition, posing financial risks and impacting profitability and stability.  
  • Limited capacity utilization in the first year may strain finances, indicating low demand and potential profitability challenges, prolonging the path to profitability and returns generation for the company. 

Shivam Chemicals IPO – Industry & Market Potential

The global animal feed market is projected to grow at a CAGR of 4.6% till 2030, driven by commercialization of livestock, demand for animal-based products, and R&D focus. Fluctuating raw material prices pose challenges. 

The Indian animal feed market was valued at INR INR 956.7 billion in 2022 and is projected to grow at a CAGR of 8.2% to reach INR 1,578.2 billion by 2028. It plays a crucial role in maintaining livestock health and ensuring food safety. 

The global limestone market reached US$ 82.4 billion in 2023 and is expected to grow to US$ 116.2 billion by 2032, with a CAGR of 3.9%. Its usage spans agriculture, wastewater treatment, industrial processes, and construction. 

Shivam Chemicals Limited IPO – Type of Offer

Shivam Chemicals Limited consists of a fresh issue of 45,87,000 shares worth INR 44 each, 

totaling INR 2,018.28 lakhs. The company intends to allocate funding for working capital, invest in subsidiary Shivam Chemicals & Minerals Pvt Ltd., and cover general corporate purposes. 

Shivam Chemicals Ltd IPO Offer Size

The offer size of Shivam Chemicals Limited is INR 2,018.28 crores, which is a fresh issue of 45,87,000 shares. The company seeks funds for working capital, invests in subsidiary Shivam Chemicals & Minerals Pvt Ltd., and covers general corporate purposes. 

Shivam Chemicals Limited IPO Allotment Structure

Shivam Chemicals Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 2,31,000 shares for Market Makers.

  • Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs. 
  • Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 2,31,000 shares for this purpose.

How to apply for a Shivam Chemicals Limited IPO?

To apply for the Shivam Chemicals   IPO through Alice Blue, you would typically 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 Shivam Chemicals   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 Shivam Chemicals   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 Shivam Chemicals 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 their 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 Shivam Chemicals 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 Shivam Chemicals 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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Shivam Chemicals  IPO:

Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Shivam Chemicals   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 (BSE) Small Medium Enterprise (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.

Shivam Chemicals  Ltd IPO Offer Registrar

The registrar for the Shivam Chemicals Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

CAMEO CORPORATE SERVICES LIMITED

Subramanian Building, No. 1,

Club House Road,

Chennai – 600 002.

Tel.: +91 – 44 – 40020700 (5 Lines)

E-mail: [email protected]

Website: www.cameoindia.com

Shivam Chemicals   Limited IPO –  FAQs 

1. What is the allotment date of Shivam Chemicals Limited? 

The allotment date of the Shivam Chemicals Limited IPO is April 26, 2024.

2. What is the price band of the Shivam Chemicals IPO? 

The price band of the issue is INR 44 per share.

3. What is the size of the Shivam Chemicals IPO? 

The offer size of Shivam Chemicals Limited is INR 2,018.28 crores, which is a fresh issue of 45,87,000 shares. The company seeks funds for working capital, invests in subsidiary Shivam Chemicals & Minerals Pvt Ltd., and covers general corporate purposes. 

4. What is the listing date of the Shivam Chemicals IPO? 

The listing date of Varyaa Creation’s IPO is  April 30, 2024.