Ahmedabad-based Shiva Pharmachem, a prominent player in the acid and alkyl chloride manufacturing sector, has announced plans to launch an Initial Public Offering (IPO).
The company has taken a significant step forward by submitting a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on August 21.
According to the disclosed draft, the IPO is anticipated to amount to Rs 900 crore.
Notably, this issue will be executed via Offer for Sale (OFS), wherein existing promoters will curtail their stake. The promoters currently hold a complete ownership stake of 100%.
Key Details of Shiva Pharmachem IPO
Shiva Pharmachem’s IPO, valued at Rs 900 crore, is set to be exclusively an offer for sale.
Promoters Vishal Rakesh Aggarwal and Rahul Rakesh Aggarwal are slated to divest shares worth Rs 383 crore, while Geetganga Investment will sell shares worth Rs 134 crore.
The IPO proceeds will exclusively benefit the shareholders who partake in the offer for sale, as the company will not be raising any fresh capital.
JM Financial and Kotak Mahindra Capital have been appointed as the Merchant Bankers for the Issue, and Link Intime will serve as the Registrar to the Issue.
A Glimpse into Shiva Pharmachem
Shiva Pharmachem has solidified its position as India’s largest acid and alkyl chloride manufacturer by volume during FY2022.
Operating plants in Loon and Dahej, Gujarat, as well as Szobaboni, Hungary, the company has cemented itself as a major player in the sector.
Impressively, more than 80% of its business is export-oriented, with partnerships spanning 181 multinational and domestic corporations.
The company specializes in producing over 100 distinct products, encompassing aliphatic and aromatic chlorides, nitriles, alkyl ketones, herbicide safeners, thiocarbamates, chloroformates, and isocyanates.
These offerings find application in agrochemicals, performance materials, disinfectants, pharmaceuticals, polymers, and cosmetics.
Financial Snapshot of Shiva Pharmachem
In FY2023, Shiva Pharmachem demonstrated robust financial performance. Operational revenue surged by 6.2% YoY, reaching Rs 1,079.5 crore.
During the same period, net profits skyrocketed by 40%, amounting to Rs 116.65 crore. The company also experienced an increase in margin by 2.59%, reaching 10.66%.
EBITDA surged by 27.8% to Rs 204.2 crore, with an accompanying margin increase of 3.20% to 18.92%. Furthermore, loans witnessed an 8.3% upswing, amounting to Rs 347.1 crore.
The impending Shiva Pharmachem IPO presents an exciting opportunity for investors to partake in a leading force within the acid and alkyl chloride domain.
With impressive financials and a strong market presence, the company’s IPO is poised to make a notable impact in the financial landscape. Stay tuned for further developments as this IPO journey unfolds.