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Shiva Pharmachem Limited IPO Details: Date, Share Price, Size, GMP & Review

Shiva-Pharmachem-Limited-IPO-Details-Date-Share-Price-Size-GMP-&-Review

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

  1. Luna in Vadodara, Gujarat
  2. Dahej SEZ in Bharuch, Gujarat
  3. 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 equitiescommodities and currencies. Here you will get the flexibility to choose the best trading platform and advanced trading software like Keev,TradeTronQuantmanAlgoBulls,Trade Radarand FoxTrader all integrated with TradingView to facilitate the best trading experience.

Also Read: Equity or Commodity which is better for Trading or more Profitable

Moreover, you can also start algo-trading – a high-frequency trading mechanism to choose the best algo-trading platforms and trade with best intraday algo-trading strategy at the lowest brokerage pricing. At Moneysukh you can also get stock recommendations and tips backed with research reports and useful tutorials on the stock market to help the clients understand the stock market in a better way. However, right now to apply for the SHIVA PHARMACHEM IPO you can follow the steps given below.

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 IPOyou 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.

 

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