IPO Details
Issue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Shiva Pharmachem IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Shiva Pharmachem Ltd IPO
The Shiva Pharmachem Ltd IPO is a 100% book-built offer that comprises only an offer for sale. There’s no fresh issue in this IPO, whose issue size is pegged at ₹900 crore.
Objectives of Shiva Pharmachem Ltd IPO
The selling shareholders will be entitled to the entire proceeds of the offer after deducting the offer expenses and relevant taxes. The company will not receive any proceeds from the offer and all such proceeds will be received by the selling shareholders.
(i) carry out the offer for sale of up to XX Equity Shares aggregating up to ₹900 crores by the selling shareholders; and (ii) achieve the benefits of listing the equity shares on the Stock Exchanges.
Shiva Pharmachem Ltd IPO Valuation
Shiva Pharmachem Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail Individual Bidders | Not less than 35% of the offer |
Industry Outlook
The Indian chemical industry is expected to grow from USD 198 Bn in 2022 to USD 334 Bn in 2027 at a CAGR of 11%. Between 2023 and 2025, it is anticipated to draw investments of around USD 100 Bn. As multinationals are looking for an alternative to China to avoid further disruptions in supply, India’s chemical industry stands in a favourable spot to profit from this shift and take a sizable share of the market.
Company Information
Shiva Pharmachem Ltd is the largest manufacturer of acid and alkyl chlorides, by volume, in CY 2022 in India and a key player globally. The company has over 20 years of experience in the Indian specialty chemicals business.
Initially, it started its operations with chlorine chemistry as its core competency with a focus on chlorination of acid and alcohols by thionyl chloride. It subsequently developed competencies in advanced intermediates involving complex chemistry and multi-step processes. They manufacture their products from their facilities in Gujarat and Hungary.
Shiva Pharmachem Strengths
Leading Player Across Several Specialty Chemical Products with Significant Industry Barriers
Shiva Pharmachem Ltd is the largest manufacturer by volume of acid and alkyl chlorides in CY 2022 in India and a key player globally. It’s focused on large scale manufacturing of acid and alkyl chlorides and advanced intermediates involving complex chemistry and multi-step processes.
Focus on R&D and Technology, Automation and Innovation
R&D has been critical to its success by allowing it to develop complex chemistries, cost effective and eco-friendly processes, advanced and complex intermediates and new products to fulfil its customers’ requirements. The company has developed in-house technology for all its products including bulk acid chlorides and specialty chemicals that has enabled it to enjoy strategic positioning amongst its reputed customers.
Diversified, Global Customer Base with Longstanding Relationships
In Fiscal 2023, the company’s customer base included 181 multinational and domestic companies. In Fiscal 2023, over 80% of its revenue from operations was generated from Fortune 500 companies globally.
Risks of Shiva Pharmachem Ltd
-
Shiva Pharmachem Ltd derives a significant portion (more than 60%) of its revenue from operations from its top 10 customers, with its single largest customer contributing more than 18% of its revenue from operations in Fiscal 2023. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
-
The company is dependent on sales outside of India, which accounted for a significant portion (more than 70%) of its revenue from operations in each of the last three fiscal years. The demand of its products outside India is subject to international market conditions and foreign regulatory risks that could adversely affect its business, results of operations and financial condition.
-
A significant portion (more than 40%) of its revenue from operations in each Fiscal 2023, Fiscal 2022 and Fiscal 2021 is attributable to customers operating in the agrochemicals sector. Any adverse changes in the agrochemicals sector or any other sector in which its large customers operate could adversely impact its business, results of operations and financial condition.
All Financial Information about Shiva Pharmachem Ltd
Comparison with peers
| Parameter (For FY 23) | Shiva Pharmachem Ltd | Navin Flourine International Ltd | Clean Science and Technology Ltd | Aether Industries Ltd |
|---|---|---|---|---|
Revenue from Operations (in ₹ crore) | 1079.466 | 2077.400 | 935.799 | 651.074 |
P/E as on August 9, 2023 | NA | 59.16 | 50.54 | 101.38 |
Return on Net Worth (in %) | 20.93 | 17.17 | 29.23 | 10.48 |
EPS (Basic) in ₹ | 10.62 | 75.70 | 27.79 | 10.47 |
IPO Registrar and Book Running Lead Managers
Link Intime India Private Ltd is the registrar of the Shiva Pharmachem Ltd IPO. The book running lead managers are:
- JM Financial Ltd
- Kotak Mahindra Capital Company Ltd
Business Model
The company’s product lines include aliphatic and aromatic chlorides, aliphatic and aromatic nitriles, alkoxy ketones, herbicide safeners, thiocarbamates, chloroformates and isocyanates. In Fiscal 2023, it offered over 100 specialised products.
Company Growth Trajectory
The company has enjoyed steady growth in its revenue from operations, EBITDA and profit after tax in the past three fiscal years. Its revenue from operations jumped from ₹760.117 crores in FY 21 to ₹1079.466 crore in FY 23. EBITDA margin rose from 18.54% in FY 21 to 18.92% in FY 23. Profit after tax jumped from ₹86.257 crore in FY 21 to ₹116.646 crore in FY 23.
Market Position
The largest manufacturer of acid and alkyl chlorides, by volume, in CY 2022 in India, Shiva Pharmachem Ltd sold its products to 22 countries outside India in FY 23. Some of the key geographies in which it sells its products are Germany, the United States, Switzerland, Italy and Mexico.
Shiva Pharmachem Ltd Profit and Loss
| Parameter | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total Income (in ₹ crore) | 1094.196 | 1031.834 | 781.831 |
Profit Before Tax (in ₹ crore) | 154.155 | 112.005 | 111.714 |
EBITDA (in ₹ crore) | 204.187 | 159.752 | 140.897 |
EPS in ₹ | 10.62 | 7.77 | 7.76 |
Shiva Pharmachem Ltd Cash Flow Statement
| Parameter | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 1541.155 | 112.005 | 111.714 |
Net Cash (used in) / Generated from Operating Activities (in ₹ crore) | 141.253 | 77.825 | 186.664 |
Net Cash (used in) / Generated from Investing Activities (in in ₹ crore) | (139.040) | (128.029) | (155.265) |
Net Cash (used in) / Generated from Financing Activities (in in ₹ crore) | 12.956 | 45.842 | (38.363) |
Cash and Cash Equivalent at the End of the Year | 29.379 | 14.210 | 18.572 |
How to Check Allotment Status of Shiva Pharmachem Ltd IPO?
You can check the allotment status of this IPO either through the BSE website or via its registrar’s portal. To check via BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To find out the status from the registrar's website:
- Visit the website of Link Intime India Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How To Apply for Shiva Pharmachem Ltd IPO?
Here are the steps to apply for Shiva Pharmachem Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Shiva Pharmachem IPO FAQs
What is the Shiva Pharmachem Ltd IPO?
The Shiva Pharmachem Ltd IPO consists entirely of an offer for sale. The total issue size is up to ₹900 crores. It’s a 100% book-built offer.
What are the bidding dates for Shiva Pharmachem Ltd IPO?
The bidding dates for this IPO are yet to be announced.
