Shiv Texchem IPO of Rs 101.35 Cr: Issue To Open On October 08; GMP Jumps 24% Ahead of The Opening

The Mumbai-based company Shiv Texchem Limited has set a price band for its initial public offering (IPO) of Rs 158 to Rs 166 per equity share with a face value of Rs 10 apiece. The subscription window will be open to retail investors, HNIs, and QIBs from Tuesday, October 8, 2024, until Thursday, October 10, 2024. The Shiv Texchem IPO is a completely new offering of 61.06 lakh shares and is a book-built issue of Rs 101.35 crores.

While the minimum lot size investment for HNIs is 2 lots of 1,600 shares totalling Rs 265,600 required for bidding, the minimum lot size investment for retail investors considering the price range is Rs 132,800. This is because the minimum lot size requirement for applications is 800 shares.

On Friday, October 11, 2024, the allotment for the Shiv Texchem IPO is anticipated to be completed. The proposed listing date of the Shiv Texchem IPO is set for Tuesday, October 15, 2024 on the BSE SME platform.

Based on the IPO reservation of Shiv Texchem 28,99,200 equity shares (Including Anchor Reservation) are reserved for QIB, 8,70,400 equity shares are HNI quota and 20,30,400 equity shares are the Retail quota. In an SME IPO like Shiv Texchem, the minimum number of shares set up for market makers is 3,05,600 equity shares. The company would use the net proceeds of the fresh issue, which total Rs 75.00 crore, to meet its long-term working capital needs and use the remaining funds for general company purposes.

According to the RHP, the firm aims to expand into new business sectors, improve the efficiency of its working capital cycle, and solidify its leading position in the hydrocarbon-based chemicals industry. It also aims to further penetrate the Indian hydrocarbon and petrochemical markets. The company reported a 37.34% rise in its revenue in FY 24 with Rs. 1,53,490.41 lakhs compared to Rs. 1,11,759.06 lakhs in FY 23. The company's net profit for the same period was Rs. 3,011.30 lakhs, a phenomenal 88% rise compared to Rs. 1,602.72 lakhs in FY 23. For FY 24, the company recorded ROE and ROCE of 19.08% and 26.99%, respectively.

About Shiv Texchem

Hydrocarbon-based chemicals are essential raw materials and inputs for use in a variety of industries, and Shiv Texchem Limited is in the business of importing and distributing them. Hydrocarbon-based chemicals, such as acetyls, alcohol, aromatics, nitriles, monomers, phenolic glycols, ketones, and isocyanates, are offered by the firm in a wide variety. Over 700 clients in India are served by the company's distribution and supply of 43 products, which are supplied from over 65 manufacturers and suppliers across different nations.

Shiv Texchem IPO GMP

Investors are excited about the potential listing gains of the IPO due to the remarkable response of the Grey Market Premium (GMP) received in the unofficial market. Shiv Texchem SME IPO's latest GMP, as of October 5, 2024, at 6:24 PM, was Rs 40. Shiv Texchem SME IPO's projected listing price is Rs 206, considering the price band of Rs 166.00 (upper price band + today's GMP). In light of this, Shiv Texchem's anticipated listing, based on the current GMP, is showing a 24.10% listing premium above the issue price on the listing day.