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Shiv Texchem IPO: Things Smart Investors Need to Know Before Investing

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Shiv Texchem Limited is set to launch its Initial Public Offering (IPO), aiming to attract investors by offering fresh equity shares. The company, incorporated in 2005, has steadily built a robust market presence, with its registered office in Mumbai and a strong leadership team headed by Vikas Pavankumar. Shiv Texchem's core business revolves around the manufacturing and trading of chemicals, catering to various industries, including textiles, agriculture, and more. The company is well-positioned in the market, thanks to its focus on innovation and high-quality chemical products.

With this IPO, Shiv Texchem intends to raise capital for expansion projects and improve its financial strength. This move aligns with the company’s growth strategy to tap into emerging opportunities in the chemicals market, both domestically and internationally. The IPO presents a good opportunity for investors looking for a foothold in a growing industry with long-term growth potential.

Shiv Texchem IPO Details and Objectives

The Shiv Texchem IPO is designed to support the company's growth plans and strengthen its balance sheet. Below are the key details and objectives of the IPO:

IPO Details

Information

Fresh Issue Size

Up to 61,05,600 Equity Shares

Issue Price

To be announced

Face Value per Share

₹10

Total Issue Size (₹ Lakhs)

6,105,600 shares (aggregating up to ₹101.35 Cr

Book Running Lead Manager

Vivro Financial Services Private Ltd

Registrar to the Issue

Link Intime Private Limited

Purpose of the IPO:

  • Expansion of manufacturing capacities
  • Strengthening the working capital
  • General corporate purposes

Timeline of Shiv Texchem IPO

Event

Date

IPO Open Date

Tuesday, October 8, 2024

IPO Close Date

Thursday, October 10, 2024

Basis of Allotment

Friday, October 11, 2024

Initiation of Refunds

Monday, October 14, 2024

Credit of Shares to Demat Account

Monday, October 14, 2024

Listing Date

Tuesday, October 15, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on October 10, 2024

Pricing and Lot Size of Shiv Texchem IPO

Price Band for the IPO

  • The price band for Shiv Texchem IPO is set between ₹158 to ₹166 per share, allowing flexibility for investors to place bids within this range.
  • Face Value: ₹10 per share

Minimum Lot Size and Application Details

  • Minimum Lot Size: Investors can bid for a minimum of 800 shares and in multiples thereof.
  • Retail Investors: The minimum investment for retail investors starts at 1 lot (800 shares), with an investment of ₹132,800 at the upper price band.
  • HNI Investors: High Net Worth Individuals (HNI) can bid for a minimum of 2 lots (1,600 shares), with an investment of ₹265,600 at the upper price band.

How to Apply for the Shiv Texchem IPO?

Online Application Process

  • Step 1: Log in to your  Bajaj Broking trading account.
  • Step 2: Navigate to the IPO section and select "Shiv Texchem  IPO."
  • Step 3: Choose the number of shares and the price within the specified range.
  • Step 4: Complete the UPI mandate or ASBA process to block the required funds.
  • Step 5: Submit your application.

Financial Health and Performance

Key Financial Metrics

  • Revenue Growth: Shiv Texchem Limited saw a 37% increase in revenue between FY 2023 and FY 2024, with revenue rising from ₹1,11,866.98 lakhs to ₹1,53,668.79 lakhs.
  • Profit After Tax (PAT): The company’s PAT surged by 88%, increasing from ₹1,602.72 lakhs in FY 2023 to ₹3,011.3 lakhs in FY 2024.
  • Assets: Total assets grew to ₹85,483.43 lakhs as of June 30, 2024, up from ₹60,234.98 lakhs in FY 2023.
  • Net Worth: The company’s net worth increased from ₹12,276.39 lakhs in FY 2023 to ₹19,287.69 lakhs by the end of FY 2024.

Recent Performance and Growth Prospects

  • Reserves and Surplus: Reserves rose significantly, reaching ₹20,080.25 lakhs as of June 30, 2024.
  • Borrowings: Total borrowings have decreased to ₹27,085.63 lakhs as of June 2024, showing a positive trend toward debt reduction.
  • Growth Outlook: The company is poised for further growth, with plans to utilize IPO funds for expansion and to leverage its improved financial health for market share growth.

Investment Risks and Opportunities

Potential Risks of Investing in the IPO:

o   Industry cyclicality impacting demand for chemical products.

o   Rising raw material costs could squeeze profit margins.

Opportunities and Growth Potential:

o   Growing demand for specialty chemicals in various sectors.

o   Expansion into new markets and product segments.

Key Performance Indicator (KPI)

Below are the key performance indicators for Shiv Texchem IPO as of March 31, 2024:

KPI

Values

Market Capitalization

₹384.66 Cr

Return on Equity (ROE)

19.08%

Return on Capital Employed (ROCE)

26.99%

Debt to Equity Ratio

1.54

Return on Net Worth (RoNW)

19.08%

Price to Book Value (P/BV)

1.4

Profit After Tax (PAT) Margin

1.96%

Shiv Texchem IPO Registrar

Registrar

Contact Information

Link Intime Pvt. Ltd

Shivtexchem.smeipo@linkintime.co.in

 

+91-810 811 4949

Shiv Texchem IPO Lead Managers

Lead Manager

Contact Information

Vivro Financial Services Pvt. Ltd

investors@vivro.net

 

+91-22-6666 8040

Conclusion

The Shiv Texchem IPO presents an opportunity for potential investors to acquire shares in a company operating in the chemicals sector. The IPO proceeds are aimed at supporting the company's ongoing projects and general corporate purposes. Before participating, investors are encouraged to review all relevant financial and market information.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

What is the Shiv Texchem IPO date & price?

Answer Field

Shiv Texchem IPO will open for subscription on October 8, 2024, and close on October 10, 2024. The IPO price band is set between ₹158 to ₹166 per share, and the minimum lot size for retail investors is 800 shares.

What is the Shiv Texchem IPO, and why is it significant?

Answer Field

Shiv Texchem IPO is a book-built issue aimed at raising ₹101.35 crores through the issuance of 61.06 lakh fresh shares. This IPO provides the company with capital for expansion and corporate needs.

What is the price band for the Shiv Texchem IPO, and how was it determined?

Answer Field

The price band for Shiv Texchem IPO is ₹158 to ₹166 per share. The price range was determined based on market demand and company valuations in consultation with the lead manager.

What are the key risks and rewards of investing in the Shiv Texchem IPO?

Answer Field

Investors should be aware of risks such as market fluctuations and competition within the chemical industry. The rewards include potential growth as the company expands its operations post-IPO.

When will the Shiv Texchem IPO shares be listed?

Answer Field

The shares are expected to be listed on the BSE SME on October 15, 2024, following the finalization of allotments on October 11, 2024.

What documents should I review before investing in the Shiv Texchem IPO?

Answer Field

Before investing, review the Draft Red Herring Prospectus (DRHP), financial statements, and market analysis to ensure an informed decision.

Will Shiv Texchem IPO pay dividends?

Answer Field

There is no official statement regarding dividend payouts post-IPO. Investors should review future announcements for any updates on this matter.

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