IPO Launch Date, Evaluation, Pricing, and Allocation Particulars of Shivam Chemicals

The IPO details for Shivam Chemicals are as follows: The IPO date has been finalized, with the IPO scheduled to open on April 23 and close on April 25. Shivam Chemicals, a BSE SME IPO, aims to raise ₹20.18 crores through the IPO. The price band for the Shivam Chemicals IPO is set at ₹44 per share, with a market lot of 3000 shares.

Shivam Chemicals is a manufacturer of Hydrated Lime (Calcium Hydroxide) & a distributor of various products such as Poultry feed supplements (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, Limestone Powder, etc. With rich experience and knowledge they have built a well-established marketing network across India and they distribute animal feed products for various well renowned manufacture over the years, they have successfully supplied an impressive quantity of over 2.50 Lakh metric tons of various products, reflecting their commitment to meeting the demands of the market. The cumulative value of these supplied products has exceeded INR 7,500 million, underscoring our financial significance in the sector. With an average monthly sales volume of 2,650 metric tons, they maintain a consistent presence and contribute to the steady flow of products in the market. Their journey began with a primary focus on animal feed supplement trading till FY 2022-23 and our evolution into manufacturing happened through the establishment of a 100% owned subsidiary.

Their wholly owned subsidiary company Shivam Chemicals and Minerals Private Limited is located at Dahej Gujarat with a manufacturing capacity of 60,000 MT. They are engaged in the manufacturing of Hydrated lime (Calcium hydroxide) product.

Shivam Chemicals IPO Details

IPO Date April 23, 2024 to April 25, 2024
Listing Date [.]
Face Value ₹10 per share
Price ₹44 per share
Lot Size 3000 Shares
Total Issue Size 4,587,000 shares (aggregating up to ₹20.18 Cr)
Fresh Issue 4,587,000 shares (aggregating up to ₹20.18 Cr)
Issue Type Fixed Price Issue IPO
Listing At BSE SME
Share holding pre issue 12,400,000
Share holding post issue 16,987,000
Market Maker portion 231,000 shares

Shivam Chemicals IPO Timeline (Tentative Schedule)

IPO Open Date Tuesday, April 23, 2024
IPO Close Date Thursday, April 25, 2024
Basis of Allotment Friday, April 26, 2024
Initiation of Refunds Monday, April 29, 2024
Credit of Shares to Demat Monday, April 29, 2024
Listing Date Tuesday, April 30, 2024
Cut-off time for UPI mandate confirmation 5 PM on April 25, 2024

Key Performance Indicator

ROE 5.13%
ROCE 6.19%
Debt/Equity 1.17
RoNW 5.06%
P/BV 3.9

Objects of the Issue (Shivam Chemicals IPO Objectives)

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects.

  1. Funding Working capital requirements in our Company;
  2. Investment in Subsidiary Co. M/s Shivam Chemicals & Minerals Pvt Ltd. for financing the augmentation of its working capital capabilities
  3. General Corporate Purpose

Shivam Chemicals IPO Review (Avoid)

The company operates in the distribution of animal feed/poultry products and also engages in the manufacturing of hydrated lime within a fiercely competitive and fragmented market segment. Despite its efforts, it has shown inconsistency in both its top and bottom lines, with declining revenue and profits observed from FY23 onwards. Considering the valuation based on FY24 annualized earnings, the offering seems excessively priced. Given the high risk and low potential return associated with this investment, it might be prudent to abstain from participating in this opportunity.

Shivam Chemicals Limited Financial Information (Restated Standalone)

Period Ended 31 Dec 2023 31 Mar 2023
Assets ₹3,881.92 ₹3,117.11
Revenue ₹10,710.70 ₹15,658.34
Profit After Tax ₹70.79 ₹357.44
Net Worth ₹1,399.64 ₹1,328.35
Reserves and Surplus ₹159.64 ₹1,288.85
Total Borrowing ₹1,638.20 ₹1,351.37
Amount in ₹ Lakhs

Shivam Chemicals Company Financial Report

₹ in Crores
Year Revenue Expense PAT
2021 ₹95.58 ₹94.30 0.87%
2022 ₹177.99 ₹172.00 4.44%
2023 ₹156.58 ₹151.70 3.57%
Dec 2023 ₹107.11 ₹105.72 0.71%

Company Promoters

  • Sanjiv Girdharlal Vasant
  • Soham Sanjiv Vasant
  • Shivam Sanjiv Vasant