Shiv Texchem IPO: Review, Valuation, Date & GMP

Shiv Texchem IPO-Complete Overview

Shiv Texchem IPO an SME IPO is a book-built issue of Rs.101.35 crore by Shiv Texchem Limited, which was established in 2005. It has been importing and distributing secondary and tertiary chemicals based on hydrocarbons, which are crucial raw materials for a variety of industries.

Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols, Phenolic, Ketones, and Isocyanates are the hydrocarbon-based chemicals the company imports and distributes. These products are crucial raw materials and feedstocks for a variety of industries, including paints and coatings, printing inks, agrochemicals, specialty polymers, pharmaceuticals, and industrial specialty chemicals. 

For a variety of industries, including paints, coatings, printing inks, agrochemicals, pharmaceuticals, specialty polymers, and industrial chemicals, these secondary and tertiary compounds are essential basic raw materials. The company distributes these chemicals to the domestic sector, buys them from foreign producers and suppliers, and makes sure that manufacturers have enough supply on time.

Gujarat Fluorochemicals Limited, Hemani Industries Limited, and Apcotex Industries Limited are a few of the company's clients. These chemicals are sourced by the corporation from several nations, including the USA, the Netherlands, Belgium, Italy, South Korea, Taiwan, Kuwait, and Qatar.

From 21 items in the fiscal year 2022 to 39 products in the fiscal year 2024, the company has increased the range of products it offers over the past three fiscal years. 

This new SME IPO is to be launched on 08 October 2024, and its ‘initial public offering’ will end on 10 October 2024. 

 

Shiv Texchem IPO Overview

The Rs.101.35 crore Shiv Texchem IPO is an entirely fresh issue of 61.06 lac Shares.

This SME IPO date is from October 08 to October 10, 2024. Shiv Texchem IPO price is Rs.158 to Rs.166 for each Share. The expected IPO listing date is on Tuesday, 15 October 2024, and listing at BSE and SME.

If You want to apply for the IPO, Click Here to Open a Demat Account.

Company Financial

The company’s revenue rose by 37% and PAT grew by 88% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Geography-wise Revenue Breakdown 

(Amount in lac)

 

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting the company's long-term needs for working capital.

• General corporate purposes.

 

Peers of Shiv Texchem Ltd.

There are no listed companies in India engaged in the same business of comparable size.

Evaluation

The IPO price is Rs.158 to Rs.166 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.20.68 from the last year, the resulting P/E ratio is 8.03x.

Considering the weighted EPS of Rs.17.92 for the last three years, the P/E ratio is 9.26x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

 IPO's Strengths 

• A varied range of products.

• Extended partnerships with suppliers and customers.

• Efficient supply chain management, encompassing handling, storage, and logistics.

• Skilled management group.

• Verifying the products' cost, attributes, amount, and delivery timetable.

 

IPO’s Weaknesses

• Reliance on foreign vendors for the purchase of chemicals.

• Exposure to changes in foreign exchange rates.

• Price volatility for chemicals.

• Changes in regulations impacting imports of chemicals.

• Economic downturns affecting client industries.

 

Shiv Texchem Limited IPO GMP

Shiv IPO GMP today is Rs.40 as of 05 October 2024. With a price of Rs.166, the estimated Shiv Texchem IPO listing price is Rs.206 at the time of writing this information.

IPO Timetable (Tentative)

The IPO date is from October 08 to October 10, 2024, with allotment on October 11, refund initiation on October 14, and listing date on October 15, 2024.

 

Shiv Texchem IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 6,105,600 Shares (Rs.101.35 Cr).

Shiv Texchem IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (800 Shares) amounting to Rs.1,32,800 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1600 Shares) amounting to Rs.2,65,600.

 

Shiv Texchem IPO Reservation (% of Net Issue)

 

 

Promoters And Management of Shiv Texchem Ltd.

• Vikas Pavankumar.

• Hemanshu S. Chokhani.

• Pavankumar Sanwaria Realty Private Limited.

• Hemanshu Syntex Private Limited.<

IPO Lead Managers

• Vivro Financial Services Private Limited.

Dividend Policy

The company has not declared and paid dividends during the last three FYs.

Conclusion

Shiv Texchem, looking to float its IPO from October 8 to 10, 2024, does provide for the issue of fresh equity shares at a price band of Rs.158 to Rs.166. The company has revenue growth at an excellent pace and enjoys diversified products. The company wishes to seek such funds through the IPO for working capital and general corporate purposes. On the flip side, the company is beset with certain disadvantages in the form of sourcing from overseas suppliers and volatile markets. So investors will have to consider these aspects before they invest in the IPO.

Shiv IPO is showing a 24.10% gain or loss in its listing price in the grey market as of the date of writing this content. Hope this blog helped you with the information you were seeking.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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