The IPO for Shiv Texchem Limited, which started on October 8, is seeing a strong response. By the third day of the bidding period, the IPO was subscribed 152.85 times. The subscription will close on October 10, and the price range for shares is set between ₹158-166. Investors can bid for a minimum lot of 800 shares.
Company Overview
Shiv Texchem imports and distributes hydrocarbon-based chemicals used in various industries such as paints, coatings, printing inks, agrochemicals, specialty polymers, pharmaceuticals, and industrial chemicals. The company’s product categories include Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols, Phenolics, Ketones, and Isocyanates.
Promoters of the company include Vikas Pavankumar, Hemanshu S. Chokhani, Pavankumar Sanwaria Realty Private Ltd, and Hemanshu Syntex Private Ltd.
According to the company’s red herring prospectus, there are no listed companies with similar business operations, so no direct industry comparison can be made. However, Shiv Texchem’s financials are strong. Between March 2023 and March 2024, the company’s revenue grew by 37%, while profit after tax (PAT) jumped by 88%.
Subscription Status
As of Day 3, the IPO has been subscribed 152.85 times overall. The retail portion is subscribed 61.01 times, while the non-institutional investor (NII) portion saw huge interest, with a subscription rate of 455.23 times. Qualified institutional buyers (QIBs) subscribed to the issue 86.70 times.
By 4:11 PM IST, Shiv Texchem had received bids for 62.06 crore shares against an offer of 40.60 lakh shares, according to data from Chittorgarh.com. On the first day, the IPO was subscribed 3.79 times, while by Day 2, it was 11.58 times subscribed.
IPO Details
Shiv Texchem is aiming to raise ₹101.35 crore through this IPO, which is solely a fresh issue of 61,05,600 equity shares. There is no “offer for sale” component in this IPO. The company plans to use the funds for long-term working capital requirements and general corporate purposes.
Grey Market Premium (GMP)
Shiv Texchem’s shares are trading at a premium of ₹35 in the grey market, according to investorgain.com. Based on the upper price band of ₹166, this indicates an estimated listing price of ₹201 per share—about 21% higher than the issue price.
The grey market premium, which has ranged from ₹0 to ₹40 over the last few sessions, suggests a positive outlook for the listing.
Key Parties Involved
- Registrar: Link Intime India Private Ltd
- Book Running Lead Manager: Vivro Financial Services Private Limited
- Market Maker: Rikhav Securities
With the increasing GMP, Shiv Texchem is expected to have a solid listing. Investors have shown confidence in the company’s business model and future growth.
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