Shiv Texchem is actively involved in the importing and distribution of hydrocarbon-based chemicals, covering a diverse product family, including Acetyls, Alcohols, Aromatics, Nitriles, Monomers, Glycols, Phenolics, Ketones, and Isocyanates. These chemicals serve as critical raw materials with applications across various industries, such as paints and coatings, printing inks, agro-chemicals, specialty polymers, pharmaceuticals, and specialty industrial chemicals.

IPO Details

The Shiv Texchem IPO is a Book Built Issue amounting to ₹101.35 crores, entirely composed of a Fresh Issue of 61.05 lakh shares. The subscription period runs from October 8 to October 10, 2024, with allotments expected to be finalized on or about October 11, 2024. The shares will be listed on the BSE SME, with a tentative listing date set for October 15, 2024.

The share price band for the Shiv Texchem IPO is set at ₹158 to ₹166 per share, with a minimum lot size of 800 shares. This translates to a minimum investment requirement of ₹1,32,800 for retail investors, while High-Net-Worth Individuals (HNIs) need to invest in at least 2 lots (1,600 shares), totaling ₹2,65,600.

Lead Manager and Registrar

Vivro Financial Services Private Limited serves as the book-running lead manager, and Link Intime Private Limited is the registrar for the issue. Rikhav Securities Limited will act as the market maker for Shiv Texchem.

Shiv Texchem IPO GMP Today

The Grey Market Premium (GMP) for Shiv Texchem Limited is projected to be between ₹20 to ₹25, based on the company’s financial performance. It is crucial to note that trading based on the Grey Market Premium lacks regulatory oversight, and price discovery cannot be accurately determined before the shares are officially listed. The GMP is mentioned solely for educational purposes and should be approached with caution.

Live Subscription Status

As of 7:00 PM on October 10, 2024, the Shiv Texchem IPO has demonstrated remarkable interest, with a live subscription status of 145.67 times on its third day. Investors can monitor real-time updates on the subscription status through the BSE website.

Anchor Investors Report

Shiv Texchem has successfully raised ₹28.87 crores from anchor investors at a price of ₹166 per share, with 17,39,200 equity shares allocated to them. This indicates strong institutional interest, which can be a positive signal for potential retail investors.

IPO Allotment Date and How to Check

The allotment date for the Shiv Texchem IPO is set for October 11, 2024. Investors can check their allotment status by visiting the registrar's website and following these steps:

Navigate to the IPO allotment status page.

Select Shiv Texchem Limited IPO from the dropdown list of IPOs.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the Shiv Texchem Limited IPO

The proceeds from the Fresh Issue will be utilized for the following objectives:

₹7,500.00 Lakhs will address long-term working capital needs.

Funds will also be allocated for general corporate purposes, enhancing the company's operational capabilities.

Financial Performance Overview

For the quarter ending June 30, 2024, Shiv Texchem reported a restated total income of ₹56,604.99 lakhs. Over the fiscal years 2024, 2023, and 2022, their restated total income stood at ₹1,53,668.79 lakhs, ₹1,11,866.98 lakhs, and ₹86,547.46 lakhs, respectively.

The restated EBITDA for the quarter ended June 30, 2024, was ₹1,886.24 lakhs, compared to ₹5,991.56 lakhs, ₹3,710.19 lakhs, and ₹2,274.96 lakhs for previous fiscal years.

The restated profit after tax for the same quarter was ₹1,005.89 lakhs, with annual figures of ₹3,011.30 lakhs, ₹1,602.71 lakhs, and ₹1,386.49 lakhs.

Valuation Metrics

For the Shiv Texchem IPO, the company projects a pre-issue EPS of ₹17.64 and a post-issue EPS of ₹12.99. The pre-issue P/E ratio stands at 9.41x, while the post-issue P/E ratio is at 12.77x. Furthermore, the Return on Capital Employed (ROCE) for FY24 is reported at 26.99%, and the Return on Equity (RoE) stands at 19.08%. These metrics suggest that the IPO is fairly priced, making it an attractive option for investors.

Investment Recommendations

The Grey Market Premium (GMP) indicates potential listing gains of 15%. However, based on the financial performance and valuation metrics, we advise investors to avoid the Shiv Texchem Limited IPO for both listing gains and long-term investment purposes.

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