The SME IPO of Shiv Texchem is open for subscription starting today and will close on October 10. The company aims to raise ₹101 crore through this IPO and plans to list its shares on the BSE SME platform. Here are 10 important points for investors to consider before subscribing:
IPO Size
The IPO consists entirely of fresh equity, totaling 61.05 lakh shares, aiming to raise approximately ₹101 crore.
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Price Band
Shiv Texchem is offering its shares at ₹158 to ₹166 each, with investors able to bid for a minimum of 800 shares in one lot.
Grey Market Premium (GMP)
In the unlisted market, the shares are trading with a GMP of ₹40, suggesting a premium of 18% over the issue price.
About Shiv Texchem
The company imports and distributes hydrocarbon-based chemicals that are essential raw materials for various industries, including paints, coatings, printing inks, agrochemicals, polymers, pharmaceuticals, and industrial chemicals.
Industry Overview
India has been a major consumer of chemicals and petrochemical products in the Asia Pacific for the last 10 to 15 years. The rapid growth of India’s manufacturing sector has created a strong demand for various chemical inputs.
Financial Performance
For the year ending March 2024, Shiv Texchem reported total revenues of ₹1,536 crore and a net profit of ₹30.11 crore.
Purpose of the Offer
The proceeds from the IPO will be used for long-term working capital needs and general corporate purposes.
Lead Managers and Registrar
Vivro Financial Services is the lead manager for the IPO, while Link Intime India is the registrar.
Issue Structure
Approximately 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
Important Dates
The IPO opens today, October 8, and will close on October 10. The final allotment is expected on October 11, with shares likely listed by October 15.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
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