Shiv Texchem Limited IPO: Everything You Need to Know
As investors eagerly anticipate new opportunities, the upcoming Shiv Texchem Limited IPO stands out in the market. Scheduled to open from October 8, 2024, to October 10, 2024, this IPO presents an intriguing investment prospect for both retail and institutional investors. Let’s dive into the essential details, financial insights, and growth potential of Shiv Texchem Limited.
IPO Overview
Shiv Texchem Limited is set to issue a total of 6,105,600 equity shares with a price band of ₹158 to ₹166 per share, aiming to raise ₹101.35 crores through this public offering. The issue will be listed on the BSE SME platform, and the allotment is expected to be finalized by October 11, 2024. Below are some key details regarding the IPO:
| Shiv Texchem IPO Details | |
|---|---|
| IPO Opening Date | October 8, 2024 |
| IPO Closing Date | October 10, 2024 |
| Allotment Date | October 11, 2024 |
| Listing Date | October 15, 2024 |
| Price Band | ₹158 – ₹166 |
| Lot Size | 800 shares |
| Minimum Investment (Retail) | ₹132,800 |
| Total Issue Size | ₹101.35 crores |
| Fresh Issue | 6,105,600 shares |
| Face Value | ₹10 |
Key Dates to Remember
- IPO Open Date: October 8, 2024
- IPO Close Date: October 10, 2024
- Basis of Allotment: October 11, 2024
- Initiation of Refunds: October 14, 2024
- Credit of Shares to Demat: October 14, 2024
- Listing Date: October 15, 2024
Company Background
Founded in 2005, Shiv Texchem Limited specializes in importing and distributing hydrocarbon-based chemicals, essential for various industries, including paints, coatings, agrochemicals, and pharmaceuticals. The company sources its products from renowned international suppliers and has developed a strong customer base, expanding from 21 products in FY 2022 to 39 products in FY 2024.
Competitive Advantages
Shiv Texchem’s competitive strengths include:
- Diverse Product Portfolio: The company boasts a well-diversified range of products across different categories.
- Robust Supply Chain: With established relationships with international suppliers, the company ensures timely deliveries to domestic industries.
- Experienced Management: The management team has extensive knowledge of the hydrocarbon-based chemical sector, fostering sustainable growth.
Financial Performance
Recent Financial Highlights
Shiv Texchem’s financials indicate a strong growth trajectory:
| Financial Year | Revenue (₹ Lakhs) | Profit After Tax (PAT) (₹ Lakhs) | Assets (₹ Lakhs) |
|---|---|---|---|
| 2024 | 1,53,668.79 | 3,011.3 | 79,868.05 |
| 2023 | 1,11,866.98 | 1,602.72 | 60,234.98 |
| 2022 | 86,547.46 | 1,386.48 | 42,543.57 |
- Revenue Growth: The company reported a 37% increase in revenue between FY 2023 and FY 2024.
- PAT Growth: Profit after tax surged by 88%, showcasing effective operational strategies.
Key Performance Indicators (KPI)
| KPI | Value |
|---|---|
| Market Cap | ₹384.66 Cr |
| ROE | 19.08% |
| ROCE | 26.99% |
| Debt/Equity | 1.54 |
| PAT Margin | 1.96% |
Investment Potential
Given the recent performance trends and the company’s focus on expanding its product portfolio, investors may find this IPO appealing. The recent surge in the chemical sector provides a favorable backdrop for growth, and Shiv Texchem’s established customer base can potentially lead to robust revenue streams.
Application Details
Investors can apply for the Shiv Texchem IPO with a minimum lot size of 800 shares. Below is a breakdown of the investment amounts:
| Investor Type | Lots | Shares | Investment Amount |
|---|---|---|---|
| Retail (Min) | 1 | 800 | ₹132,800 |
| HNI (Min) | 2 | 1,600 | ₹265,600 |
Conclusion
The Shiv Texchem Limited IPO presents a unique opportunity for investors looking to diversify their portfolios in the chemical sector. With its strong financials, diversified product offerings, and strategic growth plans, Shiv Texchem is positioned to deliver substantial returns in the medium to long term.
As always, it is essential for potential investors to conduct their due diligence and consider their risk tolerance before investing in any IPO.
Disclaimer
This blog is for informational purposes only and should not be considered as financial advice. Investors should conduct their research and consult with a financial advisor before making any investment decisions.
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