Shiva Pharmachem Limited – About the Company
With over 20 years of experience, Shiva Pharmachem is the largest manufacturer of acid and alkyl chlorides in India and a key player globally. They started with chlorine chemistry and later developed competencies in advanced intermediates. They have three manufacture facilities at in Luna, Dahej SEZ, and Sajóbábony.
The company offers over 100 specialized products to serve its diverse customer base of 181 multinational and domestic companies. The company has diversified applications across various industry sectors, including agrochemicals, performance materials, disinfectants, pharmaceuticals, polymers, and cosmetics.
Shiva Pharmachem IPO Objectives
The Shiva Pharmachem IPO is only an offer for sale by existing shareholders. The selling shareholders' offer for sale amounts to Rs. 900 crore.
Shiva Pharmachem IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Basis of Allotment | Not Available |
| Listing Date | Not Available |
| Face Value | Rs 2 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Total Issue Size | Up to [●] Equity Shares |
| Aggregating up to ₹ 9,000 million | |
| Fresh Issue | - |
| - | |
| Offer For Sale | Up to [●] Equity Shares |
| Aggregating up to ₹ 9,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Shiva Pharmachem IPO Issue Price & Size
Shiva Pharmachem IPO issue price is not yet known as the issue date and other details not declared by the company. As of DRHP, only the total issue size is available, which is Rs. 900 crores. The issue size of Rs. 900 crores is reserved under offer for sale category by existing shareholder and no fresh issue is being made.
Shiva Pharmachem IPO Launch Date
As of date, only the DRHP has been filed with the SEBI, so no tentative dates has been officially announced by the company through RHP. Once the company files the RHP document, all the necessary dates and price band will be updated.
Shiva Pharmachem Financial Statements:
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
| Income | |||
| Revenue from operations | 10794.66 | 10159.9 | 7601.17 |
| Other income | 1147.3 | 158.4 | 217.14 |
| Total Income | 10941.96 | 10318.34 | 7818.31 |
| Expenses | |||
| Cost of Materials Consumed | 5763.54 | 5358.59 | 4058.11 |
| Purchases of Traded Goods | 78.74 | 273.54 | 25.17 |
| Changes in Inventories | -322.03 | -30.54 | -368.1 |
| Employee Benefits Expense | 1057.5 | 1045.97 | 972.71 |
| Finance Costs | 140.96 | 94.42 | 88.67 |
| Depreciation and Amortization Expense | 506.66 | 541.59 | 420.29 |
| Other Expenses | 2175.05 | 1914.83 | 1504.31 |
| Total Expenses ( | 9400.42 | 9198.28 | 6701.17 |
| Profit/(Loss) after tax from
continuing operations |
1166.46 | 833.2 | 862.57 |
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
| Revenue from Operations | 10794.66 | 10159.9 | 87601.17 |
| Revenue Growth (%) | 6.25 | 33.66 | N.A. |
| Gross Profit (₹ in million) | 5274.42 | 4558.31 | 3885.99 |
| Gross Margin (%) | 48.86 | 44.87 | 51.12 |
| EBITDA (₹ in million) | 2041.87 | 1597.52 | 1408.97 |
| EBITDA Margin (%) | 18.92 | 15.72 | 18.54 |
| Profit after tax (PAT) (₹ in million) | 1166.46 | 833.2 | 862.57 |
| PAT Margin (%) | 10.66 | 8.07 | 11.03 |
| Return on Average Equity (RoAE) (%) | 22.88 | 20.24 | 22.36 |
| Return on Average Capital
Employed (RoACE) (%) |
20.34 | 17.22 | 18.73 |
| Net Fixed Asset Turnover | 1.99 | 2.26 | 1.88 |
| Net Working Capital Days | 6 | 14 | 47 |
| Operating Cash Flows (₹ in million) | 1412.53 | 778.25 | 1866.64 |
| Revenue from sale of products
within India (₹ in million) |
2019.8 | 2794.88 | 1806.24 |
| Revenue from sale of products
outside India (₹ in million) |
8774.87 | 7365.02 | 5794.94 |
| Revenue from sale of
products within India (%) |
18.71 | 27.51 | 23.76 |
| Revenue from sale of
products outside India (%) |
81.29 | 72.49 | 76.24 |
| Basic earnings | 10.62 | 7.77 | 7.76 |
| Diluted earnings | 10.62 | 7.77 | 7.76 |
Shiva Pharmachem IPO Promoters & Shareholding of the Company
There are 6 prompter of Shiva Pharmachem as of date of filing the DRHP. The promoters hold around 89.76% of the company.
| Name of the Promoter | Number of Equity Shares | % of the pre-Offer issued | Designation |
| Vishal Agrawal Family Trust | 3,09,90,035 | 29.18 | - |
| Vishal Rakesh Agrawal | 2,06,87,640 | 19.48 | Promoter, Managing Director |
| Rahul Rakesh Agrawal | 1,85,38,320 | 17.46 | Promoter, and Non-Executive Director |
| Rahul Agrawal Family Trust | 1,44,77,647 | 13.63 | - |
| Rakesh Agrawal Family Trust | 1,06,20,300 | 10 | - |
| Rakesh Shiwebhagwan Agrawal | 15,318 | 0.01 | Promoter, Non-Executive Chairman |
| Total | 9,53,29,260 | 89.76 |
Why Invest in Shiva Pharmachem IPO?
Shiva Pharmachem, with over 20 years of experience and its innovative approach has solidified its position as a powerhouse in the pharmaceutical sector. The company offers diverse product portfolio, quality products delivery, focus on R&D, and strategic partnerships to propel itself to a leadership position in the industry.
The company's controlled debt levels, capacity expansion, and new product launches, funded largely through internal accruals, have played a major role in its growth trajectory.
The company is India's largest manufacturer of acid and alkyl chlorides, as well as a major player in the global market. The company started with chlorine chemistry initially but later developed competencies in advanced intermediates.
Strength
Leading player across several specialty chemical products
The company is engaged in the manufacturing of varieties of acid chlorides and specialty chemicals. These chemicals are used in multiple industries like agro, cosmetics, pharmaceuticals, disinfectants, fragrance, etc.
The company offered over 100 specialized products developed using their own in-house technology. They have strong and sustainable entry barriers in their chemical products, including in-house technology for all products, strategic positioning among reputed customers, dedicated state-of-the-art plants with multi-step synthesis for various chemistries, and over 15 complex chemistry capabilities for manufacturing different product groups.
| Products | Industry Applications | Company India Market Share in CY 2022 |
| Acid chloride | Pharmaceuticals, polymers, agrochemicals | Largest player 49%-52% |
| Aromatic carbonyl chloride | Organic chemicals, polycarbonate resins, dyestuffs, and isocyanates polyurethane resins | Largest player 32%-34% |
| Aliphatic carbonyl chloride | Household cosmetics, chemicals, pesticides, fuels, essential oils | Largest player 32%-34% |
| Aromatic and Fluoro Nitriles | Polymers, pharmaceuticals, agrochemicals, personal care, adhesives and sealants | 7%-9% |
| Fluoro Aromatic Amines | Polymers, pharmaceuticals, agrochemicals, personal care | 7%-10% |
Experience promoters
The company is led by Promoters, who have over decades of experience in the chemical industry. Vishal Agrawal, who is MD & promoter, holds a degree of bachelor of engineering from Stevens Institute of Technology, New Jersey. He has over 24 years of experience in chemical and manufacturing industry and has been with company since incorporation. Rahul Rakesh Agrawal also holds a degree of bachelor of science in engineering (chemical engineering) from the University of Michigan and MBA from Harvard University, Cambridge.
Diversified, global customer base
As of FY23, the company generated with over 80% of our revenue generated from Fortune 500 companies. Globally the company had customer base of 181 multinational and domestic companies.
Strategically located facilities
The company operates three manufacturing facilities
- Luna in Vadodara, Gujarat
- Dahej SEZ in Bharuch, Gujarat
- Sajóbábony in Hungary.
These facilities are strategically located to serve a large customer base and offer cost- and speed-of-delivery benefits to customers with a proper storage network.
Risk Factors
Revenue concentration
Even though the company have broad customer base of 181 multinational and domestic companies but over 60% of their revenue comes from the sale of products to top 10 customers. So any loss from top 10 customers or demand reduction could have a material adverse effect on the business, results of operations, and financial condition.
| Period | % contribution of largest customer to revenue from operations | Revenue from top 10 customers | % contribution of top 10 customers to revenue from operations | Revenue from top 20 customers | Percentage contribution of top 20 customers to revenue from operations |
| Fiscal 2023 | 18.45 | 7424.2 | 68.78 | 8688 | 80.49 |
| Fiscal 2022 | 14.91 | 6602.21 | 64.98 | 7897 | 77.73 |
| Fiscal 2021 | 17.84 | 4634 | 60.97 | 5574 | 73.33 |
Dependence on clients outside India
As can be seen from the table below, significant part of revenue is contributed by the clients from outside India. As we all know nations like Europe and North America are pro environmental friendly nations.
Seeing the domain of company business, in order to serve clients and maintain future relationship, the company has to therefore follow stringent pollution control norms set by the respective government.
| Country | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| Europe | 38.45 | 28.25 | 32.1 |
| North America | 25.66 | 24.39 | 15.44 |
| Asia | 5.11 | 7.55 | 12.7 |
| Middle East | 3.69 | 3.79 | 5.33 |
| South America | 0.96 | 2.07 | 1.27 |
| others | 7.42 | 6.44 | 9.4 |
| Total Outside India | 81.29 | 72.49 | 76.24 |
Closure notice of manufacturing facility
During May 2021, authorities ordered closure of manufacturing facility at Dahej SEZ due to non-compliance with the consent order under the Water Act, 1974. The facility contributed 40.18%, 36.34%, and 39.66% to their revenue in Fy23, Fy22 and FY21.
The order was later revoked on furnishing bank guarantee and necessary undertaking. In future if the activity repeats, this could have direct impact on company’s financials.
Shiva Pharmachem Limited IPO Grey Market Premium (GMP)
GMP is the premium price paid over the IPO issue price. This premium is seen from speculator or trader view, that they are ready to pay in the grey market. GMP is an unofficial ecosystem that is determined in the grey market and keeps fluctuating as per the demand and supply of the shares in the primary market. However, GMP only should be not considered as a reliable factor to determine the listing price of an IPO-bounded company, as there are various factors that affect the stock market and individual stocks.
Also Read: What are the Top Factors Affecting the Stock Market in India
The DRHP has only been filled with the SEBI and no further news on issue launch date is present in market. As and when the RHP is filed and date of IPO comes near, grey market premium price discovery will be made available through online sources.
How to Apply for SHIVA PHARMACHEM IPO?
To apply in SHIVA PHARMACHEM IPO you need to open demat account to hold your allotted shares and a trading account to sell or buy the shares into the secondary market. And not only applying in the IPO, but while buying or selling the shares in the stock market you also need both these types of accounts. Hence, you can apply here at Moneysukh to open a trading and demat account at the lowest brokerage.
Also Read: Features of Best Demat Account with Lowest Brokerage Charges in India
Having both these accounts at Moneysukh, you will get the advantages of the best online trading apps to trade or invest in equities, commodities and currencies. Here you will get the flexibility to choose the best trading platform and advanced trading software like Keev,TradeTron, Quantman, AlgoBulls,Trade Radar, and FoxTrader all integrated with TradingView to facilitate the best trading experience.
Also Read: Equity or Commodity which is better for Trading or more Profitable
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Steps to Apply for SHIVA PHARMACHEM IPO:
Step 1: When SHIVA PHARMACHEM IPO opens you can bid online.
Step 2: Just go to trade.moneysukh.com and log in with your User ID & password.
Step 3: Now look for the IPO section and click on the SHIVA PHARMACHEM IPO.
Step 4: Here you need to fill in the required details like price, quantity, and so on.
Note: At the time of applying for the IPO, make sure to bid at the cutoff price and then submit your application.
Step 5: Now make the required payment and then submit your IPO application successfully.
How to Check SHIVA PHARMACHEM IPO Allotment Status?
Checking the allotment status online is very easy if you have the PAN details and IPO application number. But checking the details of the IPO allotment is possible only when the basis of allotment is arrived. In the case of SHIVA PHARMACHEM IPO, you can also check the allotment status through various online sources.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
And the basis of the allotment is highly dependent on the oversubscription of the IPO. If the IPO is oversubscribed by many folds, then for the investors who applied through the retail category or HNI category, the chances of getting the allotment become very low. Here while applying to such over-demanding IPOs you can follow some tips to improve your chances of getting the allotment in IPO.
Also Read: How to Increase the Chances of IPO Allotment
And when due to oversubscription of IPOs, you don’t get any allotment of shares, then your money will be refunded back into your bank account or fun will be unblocked if you applied through ASBA. However, despite the oversubscribed IPO, if get the allotment then the allocated shares will be transferred into your demat account any time before the date of listing. That you can sell in the secondary market after listing or keep from the long-term investment point of view.
