Shiv Texchem Limited has emerged as a significant player in the importing and distribution of hydrocarbon-based chemicals, catering to a broad range of industries such as paints and coatings, agro-chemicals, pharmaceuticals, and specialty polymers. This IPO represents a crucial opportunity for investors looking to tap into a growing market.

The Shiv Texchem Limited IPO, a Book Built Issue amounting to ₹101.35 Crores, is set to feature a fresh issue of 61.05 lakh shares. Investors can subscribe to this IPO during the period from October 8 to October 10, 2024. The allotment is expected to be finalized on October 11, 2024, with the shares likely to be listed on the BSE SME on October 15, 2024.

The share price band for the Shiv Texchem IPO is established at ₹158 to ₹166 per share, with a minimum lot size of 800 shares. Consequently, retail investors are required to invest a minimum of ₹1,32,800, while High-Net-Worth Individuals (HNIs) need to invest at least ₹2,65,600 for two lots (1,600 shares).

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

Grey Market Premium (GMP) Insights

The Grey Market Premium (GMP) for Shiv Texchem Limited IPO is anticipated to be between ₹20 to ₹25, based on the company's financial performance. It’s essential to note that trading based on GMP is not a reliable indicator of future performance. The GMP fluctuates based on demand and supply dynamics in the unorganized market, and it should be treated as an informational reference only.

Live Subscription Status

As of 7:00 PM on October 10, 2024, the live subscription status for Shiv Texchem IPO shows an impressive subscription of 145.67 times on the third day of the subscription period. This high level of interest indicates robust demand among investors. For real-time updates on the Shiv Texchem IPO Live Subscription Status, refer to the BSE.

Anchor Investors Report

Shiv Texchem has successfully raised ₹28.87 Crore from anchor investors, allocating 17,39,200 equity shares at the upper price of ₹166 per share. This allocation signifies confidence from institutional investors in the company’s potential. For further insights, check the Shiv Texchem Anchor Investors List.

Allotment Process and Status

The IPO allotment date for Shiv Texchem is set for October 11, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select Shiv Texchem Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

This straightforward process enables investors to track their shares effectively.

Objectives of Shiv Texchem Limited IPO

The proceeds from the fresh issue will be allocated toward:

Long-term working capital requirements of ₹7,500.00 lakhs.

General corporate purposes.

Financial Overview and Review

For the fiscal year ending June 30, 2024, Shiv Texchem reported a total income of ₹56,604.99 lakhs, demonstrating substantial growth over previous years, with figures of ₹1,53,668.79 lakhs, ₹1,11,866.98 lakhs, and ₹86,547.46 lakhs for the years 2023, 2022, and 2021, respectively. The company's EBITDA for the same period stood at ₹1,886.24 lakhs, reflecting a healthy upward trajectory.

The restated profit after tax for June 30, 2024, was ₹1,005.89 lakhs, compared to ₹3,011.30 lakhs, ₹1,602.71 lakhs, and ₹1,386.49 lakhs in the previous fiscal years. These figures underline the company's ability to maintain profitability amidst market fluctuations.

For the Shiv Texchem IPO, the company presents a pre-issue EPS of ₹17.64 and a post-issue EPS of ₹12.99. The pre-issue P/E ratio is calculated at 9.41x, while the post-issue P/E ratio stands at 12.77x. With a ROCE of 26.99% and a RoE of 19.08% for FY24, these financial metrics indicate that the IPO is fairly priced, making it an intriguing opportunity for potential investors.

Conclusion: Should You Invest?

While the Grey Market Premium (GMP) indicates potential listing gains of 15%, it's crucial for investors to assess the long-term prospects of the company before making investment decisions. Given the overall financial performance and valuation metrics, we recommend a cautious approach, suggesting that investors should avoid the Shiv Texchem Limited IPO for listing gains or long-term investment.

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