About the Company:
Shiv Texchem Ltd is primarily engaged in the business of importing and distribution of hydrocarbon-based chemicals of the product family viz. Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols Phenolic, Ketones, and Isocyanates.
Company’s raw materials and inputs and have application across wide spectrum of industries like paints and coatings, printing inks, agro-chemical products, specialty polymers, pharmaceuticals products and specialty industrial chemicals.
In the petrochemical industry, there is a wide array of base chemicals that serve as the foundation for various derivative chemicals. These chemicals serve as secondary and tertiary chemicals for application in various industries.
Company focuses on the import and redistribution of these secondary and tertiary chemicals, which are essential raw materials for multiple industries.
Company’s role involves sourcing these chemicals from international producers and suppliers, redistributing them to domestic industries, and ensuring sufficient and timely supply to manufacturers.
By handling the import and distribution of these essential raw materials, we support various industries in accessing high-quality chemicals for their manufacturing processes.
Company bridges the gap between global suppliers and local industries, ensuring a steady and reliable supply of crucial chemicals.
Company’s Customers:
Company has strategically sourced a wide variety of products from global producers and suppliers and have successfully delivered to a diverse range of customers such as Apcotex Industries Ltd, Hemani Industries Ltd, Gujarat Fluorochemicals Ltd amongst others.
From where does Company Procure the Products?
Company’s sourcing efforts have spanned multiple countries including China, Taiwan, South Korea, Kuwait, Qatar, USA, Netherlands, Belgium and Italy amongst others.
Company’s Product Portfolio and Customer base:
Over the past three Fiscals, Company has expanded the product portfolio from offering 21 products in Fiscal 2022 to 39 products by Fiscal 2024.
Company’s customer base has also grown from above 400 customers by Fiscal 2022 to over 650 customers by Fiscal 2024 which has helped us to penetrate a wide market that is not only limited to number of customers but also products; while our network of suppliers has expanded from above 30 in Fiscal 22 to above 60 during Fiscal 2024.
Company continuously endeavours to expand the souring and supply of our products from diverse suppliers and from multiple countries.
Management Team:
- Mr. Vikas Pavankumar (Designation: Chairman and Managing Director)
- Mr. Hemanshu S. Chokhani (Designation: Whole Time Director and Chief Financial Officer)
Objectives of the Issue:
Fresh Issue: (Rs.101.35 cr)
- To meet long-term working capital requirements.
- General Corporate Purposes.
Peer Group Comparison:
There are no listed companies whose business operations are similar to that of Shiv Texchem Ltd or are of a comparable size. Accordingly, it is not possible to provide an industry comparison in relation to the Company.
Positives for the Company:
Well diversified product portfolio, customer base with extensive suppliers’ network.
- Company is focused on sourcing and supplying the diversified products which are critical raw materials and have applications across a wide spectrum of industry including paints and coatings, printing inks, agro-chemical products, specialty polymers, pharmaceuticals products and specialty industrial chemicals.
- As of March 31, 2024, Company’s product portfolio comprised around 39 products which were sourced from 60+ manufacturers and suppliers and distributed and supplied to over 650 customers.
- Company’s diversification of revenue across multiple industries and customers allows us to prevent any possible customer concentration. In addition, our diversified product portfolio allows us to counter seasonal trends and address different business cycles across industries where our products are used.
- With our track record and diversified product portfolio, we have been able to retain our existing customers and have also been able to attract new customers.
Long standing and active relationships with customers.
- Company has developed long-term relationships with various corporations that has helped us expand our product offerings.
- Company’s customers are typically engaged in various industries, including paints and coatings, printing inks, agro-chemical products, specialty polymers, pharmaceuticals products and specialty industrial chemicals and are spread across various geographies in India, which helps us mitigate risks resulting from dependence on a limited number of customers, industry and geographic concentration.
- As of March 31, 2024, Company’s product portfolio was sold to over 650 customers in India.
Company provides Storage Solution.
- Company’s storage infrastructure arrangements act as a critical part of our operations, providing secure and reliable storage solutions for a wide range of chemicals and materials.
- Company has entered into storage and handling agreements at Kandla, Mundra, JNPT, Mumbai and Hazira ports, as well as we also arrange few contracted storage facilities as per requirement of our customers.
- From specialized facilities for sensitive chemicals to bulk storage tanks for hydrocarbon chains, we have the capability to handle any requirement with precision and efficiency. This infrastructure not only ensures the availability of materials when needed but also enables us to provide timely and reliable last-mile solutions for our customers.
Company Plans to Expand the Product Portfolio and diversify into additional business segments.
- Company currently source and sell hydrocarbon-based chemicals under the product family viz. Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols, Phenolic, Ketones, and Isocyanates. With our current and proposed products, company plans to further increase our product range and cater to additional segments while enhancing our reach to diversified customers.
- Company currently supplyies the products for major applications in manufacturing of paints and coatings, printing inks, agro-chemical products, specialty polymers, pharmaceuticals products and specialty industrial chemicals.
- Company’s products are used at different stages across these application segments as excipients, emulsification, surfactants, ingredients, reagents, buffering agents, refining agents, among other resources. We intend to expand the sale of our products to other industries where such products have applications.
- Company believes expanding the product range will enable us to better utilize our capabilities, manpower and other resources.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 865.4 | 1118.6 | 1536.7 |
| Net Profit | 13.86 | 16.02 | 30.11 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th October 2024 |
| Issue Closes on | 10th October 2024 |
| Issue Price | Rs.158 – 166 |
| Face Value | Rs.10 |
| Minimum Lot | 800 Shares |
| Minimum Investment | Rs.1,32,800 |
| Issue Constitutes | 26.34 % |
| Issue Size | Rs. 101.35 cr |
| Market Cap | Rs.384.65 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 61,05,600 (Rs.101.35 cr) |
| Equity Shares Prior to the Issue | 1,70,66,672 |
| Equity Shares after the Issue | 2,31,72,272 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 20.68 | 8.02 | 19.08% | 112.99 | 1.54 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Shiv Texchem Ltd is a key player in the import and distribution of hydrocarbon-based chemicals, offering a diverse range of products including Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols, Phenolic, Ketones, and Isocyanates. These chemicals are vital raw materials for industries like paints and coatings, printing inks, agro-chemicals, specialty polymers, pharmaceuticals, and industrial chemicals.
The company operates within the petrochemical sector, specializing in secondary and tertiary chemicals that form the backbone of many manufacturing processes. By sourcing these critical materials from international suppliers and redistributing them to domestic markets, Shiv Texchem plays a pivotal role in ensuring the smooth operation of various industries reliant on chemical inputs. Shiv Texchem serves well-known clients such as Apcotex Industries Ltd, Hemani Industries Ltd, and Gujarat Fluorochemicals Ltd. The company prides itself on its diversified product portfolio, extensive supplier network, and long-standing relationships with its customers. With plans to expand its product range and explore new business segments, Shiv Texchem is poised to strengthen its position as a reliable supplier of essential chemicals to a broad spectrum of industries, bridging the gap between global producers and local manufacturers. For investors seeking opportunities in the chemical distribution industry, the company presents a promising prospect for sustainable returns. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 11th October 2024 |
| Initiation of Refunds | on or Before 14th October 2024 |
| Credit of Equity Shares: | on or Before 14th October 2024 |
| Listing Date: | on or Before 15th October 2024 |
| Company Contact Info: |
|---|
| Shiv Texchem Ltd 602, 6th Floor, Savoy Chambers, Hasmukh Nagar, Santacruz (W) Mumbai, 400 054 Telephone No: +91 96195 11788 E-Mail: cs@shivtexchem.com Website: www.shivtexchem.com |
| Registrar to the Issue: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED Address: C 101, 247 Park, L.B.S. Marg, Vikhroli (West) Mumbai- 400083 Maharashtra, India Tel. No.: +91-8108114949 Email ID: shivtexchem.smeipo@linkintime.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
