Insights and Investment Guide

The Shiv Texchem Limited IPO is generating buzz as it gears up for its launch from October 8, 2024, to October 10, 2024. This IPO provides investors with a promising opportunity to participate in the company’s growing success within the chemical industry. With a total issue size of ₹101.35 crores, consisting solely of fresh issue shares, this book-built issue could be a valuable addition to your investment portfolio.

Shiv Texchem IPO Overview

Investors can subscribe to this Shiv Texchem Limited IPO at a price band of ₹158 to ₹166 per share. Retail investors must apply for a minimum lot size of 800 shares, which amounts to an investment of ₹132,800. Meanwhile, HNIs (High Net Worth Individuals) can invest in at least two lots, totaling ₹265,600.
Issue Size: 6,105,600 shares aggregating up to ₹101.35 crores
Face Value: ₹10 per share
IPO Type: Book Built Issue IPO
Listing: BSE SME

Key Dates to Keep in Mind

IPO Opening Date: October 8, 2024
IPO Closing Date: October 10, 2024
Allotment Date: October 11, 2024
Refunds Initiated: October 14, 2024
Shares Credited to Demat Accounts: October 14, 2024
Listing Date (Tentative): October 15, 2024
Mark these dates to ensure you don’t miss out on the Shiv Texchem IPO.

Company Overview: Shiv Texchem Limited

Established in 2005, Shiv Texchem Limited has become a renowned player in the Indian chemical industry, specializing in the import and distribution of hydrocarbon-based chemicals. The company supplies critical raw materials to industries such as:

• Paints and Coatings
• Printing Inks
• Agrochemicals
• Specialty Polymers
• Pharmaceuticals
• Industrial Specialty Chemicals

Shiv Texchem imports chemicals from global suppliers in key countries, including China, South Korea, Taiwan, Qatar, the USA, and Italy. Its robust distribution network ensures timely supply to Indian manufacturers, helping to strengthen the nation’s industrial output. Some of its top clients include Apcotex Industries Limited, Hemani Industries Limited, and Gujarat Fluorochemicals Limited.

Financial Growth and Expanding Horizons

Shiv Texchem Limited has demonstrated remarkable financial performance in recent years, showcasing its growth potential. From FY2022 to FY2024, the company expanded its product portfolio from 21 to 39 products, and its client base grew from 400 to 650 customers.

Key Financial Highlights

• Revenue: ₹1,53,668.79 lakhs in FY2024, up from ₹1,11,866.98 lakhs in FY2023
• Profit After Tax (PAT): ₹3,011.3 lakhs in FY2024, up from ₹1,602.72 lakhs in FY2023

This growth trajectory underlines Shiv Texchem's resilience in a competitive market, proving its ability to deliver consistent results while expanding its reach.

Competitive Strengths

Shiv Texchem Limited stands out in the market due to its:

• Integrated Business Model: Covering the entire value chain from sourcing to distribution.
• Diversified Portfolio: Offering a wide range of chemical products to various industries.
• Strong Client Relationships: Established trust with leading players in several sectors.
• Experienced Management: A leadership team with deep industry knowledge and strong ties with international suppliers.

These competitive strengths position Shiv Texchem for sustained growth in the future.

Detailed Financial Information (Restated)

Objectives of the IPO:

The Shiv Texchem IPO aims to raise capital primarily for the following purposes:

• Long-term working capital: Ensuring sufficient liquidity to support operational growth.
• General corporate expenses: Funding day-to-day activities and improving business efficiency.

This strategic use of funds is expected to enhance Shiv Texchem’s ability to expand operations and strengthen its market presence.

Should You Invest in the Shiv Texchem IPO?

Market analysts are optimistic about Shiv Texchem’s growth prospects, given the company's solid financial performance and asset-light business model. With the company's diversified portfolio and proven track record, the IPO offers a promising opportunity for investors looking to secure medium to long-term returns.

Conclusion:

The Shiv Texchem Limited IPO is shaping up to be a noteworthy opportunity for investors interested in the chemical industry. The company’s strong financials, diversified portfolio, and robust client relationships make it a contender for future growth. By strategically using the IPO proceeds for business expansion and working capital needs, Shiv Texchem is well-positioned to sustain its upward trajectory.

As always, potential investors should carefully evaluate the company’s financial health and market position before making any investment decisions. The upcoming listing on the BSE SME could pave the way for greater market visibility and provide substantial returns for early investors.

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