About the Company:
Shivam Chemicals Ltd is a manufacturer of Hydrated Lime (Calcium Hydroxide) & a distributor of various products such as Poultry feed supplement (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, Limestone Powder, etc
With rich experience and knowledge company has built a well-established marketing network across India and distributes animal feed products for various well renowned manufacturers.
Over the years, Company has successfully supplied an impressive quantity of over 2.50 Lakh metric tons of various products, reflecting our commitment to meeting the demands of the market.
With an average monthly sales volume of 2,650 metric tons, company maintains a consistent presence and contribute to the steady flow of products in the market.
Company’s journey began with a primary focus on animal feed supplement trading till FY 2022-23 and our evolution into manufacturing is happened through the establishment of a 100% owned subsidiary.
Today’ we are one of India’s major distributors of Poultry Feed Supplement (MBM), Di-Calcium Phosphate (Feed Grade), Mono Calcium Phosphate (MCP), Magnesium Oxide, Hydrated Lime, Limestone Powder and Soya De-Oiled Cake.
Company’s wholly owned subsidiary:
Company’s 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 manufacturing of Hydrated lime (Calcium hydroxide) product.
Products Manufactured by the Company:
Company offers wide range of high-quality feed products. It consists of poultry feed, cattle feed and specialised chemical.
Shivam Chemicals Ltd is engaged in distribution that has diversified product range from Poultry feed supplement (MBM), Di Calcium Phosphate (Feed Grade), Magnesium oxide, Limestone powder and subsidiary company is engaged in manufacturing of hydrated lime products.
Company’s Business Structure is summarized as follows:
Company has Logistic Efficiency as it uses Bulker Truck.
Company uses Bulker Truck as a medium of transportation of its products. Current company uses 8 (Eights) bulker trucks on rent in our factory which has carrying capacity upto 25 tons of product per bulker. The advantage of employing a Bulker truck includes:
- The adoption of bulkers results in a minimum 10% reduction in operational costs.
- Unloading with bulkers is 75% faster compared to using bags.
- Directly storing materials in silos effectively minimizes storage costs
- Facilitates waste reduction during the loading and unloading processes.
- Optimal product quality is maintained through minimal air exposure.
Management Team:
- Mr. Sanjiv Girdharlal Vasant (Designation: Chairman and Managing Director)
- Mr. Soham Sanjiv Vasant (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.20.18 cr)
- Funding Working capital requirements in our Company.
- Investment in Subsidiary Co. M/s Shivam Chemicals & Minerals Pvt Ltd. for financing the augmentation of its working capital capabilities.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| Funding Working Capital Requirements in Our Company |
7.05 cr |
| Investment in Subsidiary Co. M/s Shivam Chemicals & Minerals Pvt. Ltd. for financing the augmentation of its working capital capabilities. |
5.62 cr |
| General Corporate Purpose | 5.01 cr |
| Net Proceeds | 17.68 cr |
Positives for the Company:
In house Manufacturing through 100% owned subsidiary.
- Company’s subsidiary Shivam Chemicals and Minerals Pvt. Ltd is 100% owned by our company. It is incorporated in 2019, operates a manufacturing unit specializing in hydrated lime production. The unit has a capacity of 60,000 MT per year.
- Hydrated lime has diverse applications in industries such as metallurgy, sugar refining, water treatment, and more. The subsidiary benefits from a substantial customer base due to these wide-ranging applications.
- Shivam Chemical Ltd, the holding company, has an extensive marketing network with offices throughout India, allowing them to reach a wide range of industrial consumers, dealers, and distributors of chemical products across the country.
- The manufacturing unit commenced commercial production in May 2023 and has achieved 40% capacity utilization by December. Starting from April 2024, the company is projected to increase its capacity utilization up to 65 %, indicating a steady growth in production and market presence.
- With its extensive contacts and robust marketing network, the subsidiary is well-positioned to seize opportunities in the Indian market.
Technological competitive advantage.
- Company is using complete machinery and technology which is a state-of-the-art with proprietary Italian technology from Cimprogetti Lime Technologies, Italy. To cater to Indian Market, they have set up Company in India in the name of Cimprogetti India Pvt. Ltd., Delhi.
- Due to this technology Company has achieved high production efficiency, superior quality product and reduced cost of production. Use of modern “Cimprogetti” technology ensures waste reduction, efficient storage & handling & improved quality allowing it to create a technological moat.
Company is Setting up for Manufacturing of hydrated lime at Dahej, Gujarat.
- To seize the burgeoning opportunities for growth in this sector, Company aims to strategically invest in both physical and operational infrastructure. This initiative is geared towards enhancing our manufacturing capabilities, with a specific emphasis on manufacturing capacities within our current product categories.
- Simultaneously, Company aspires to diversify the product portfolio by introducing innovative offerings to the market. In order to achieve this, Company has invested in a manufacturing unit which is located in Dahej, Gujarat.
- Company has recently acquired 14,303 sq. mtr. acres of land and established a state-of-the-art manufacturing facility spanning 4161 sq. mtr. in Dahej, with a total production capacity of 60,000 MT of hydrated lime per year.
Company Plans to Expand the domestic customer base and Enter new Geographical market.
- Company aims to focus on deepening our penetration in the existing markets and thereby increase our domestic presence by expanding our customer network.
- At present, Company sell our products in many States like Maharashtra, Uttar Pradesh, Gujarat, Telangana, Haryana, Karnataka, Uttarakhand, Punjab, Madhya Pradesh, Andhra Pradesh, West Bengal, Kerala, Tamil Nadu, Telangana, Orrisa, Bihar, Assam, etc within India.
- Company aims to focus on increasing the customer base by exploring domestic markets other than the above states mentioned.
Company has Competitive advantage because it uses BULKERS for Transportation of materials.
- Company produces Hydrate lime as one of our products under Chemical. Presently, other entities utilize Jumbo Bags for the transportation of Hydrated Lime.
- Lime dust is produced during loading, unloading, handling, and screening processes, contributing to air pollution and elevated metal content in the soil. This poses health risks, leading to respiratory issues, irritation, and other adverse health impacts.
- Company employs BULKERS for the transportation of Hydrated Lime, incorporating a closed-end handling system that effectively eliminates lime dust. This proactive approach not only has a positive environmental impact by reducing hazards to both the environment and health but also positions us ahead of our competitors in strict compliance with environmental norms.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 95.57 | 177.98 | 156.58 | 107.10 |
| Net Profit | 0.86 | 4.43 | 3.57 | 0.70 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Shivam Chemicals Ltd | 10 | 2.88 | 15.28 | 26.90% | 10.72 |
| Narmada Agrobase Ltd | 10 | 0.48 | 48.96 | 4.11% | 11.72 |
| Godrej Agrovet Ltd | 10 | 15.71 | 34.33 | 10.77% | 142.78 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 23rd April 2024 |
| Issue Closes on | 25th April 2024 |
| Issue Price | Rs.44 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 Shares |
| Minimum Investment | Rs.1,32,000 |
| Issue Constitutes | 27 % |
| Issue Size | Rs.20.18 cr |
| Market Cap | Rs.74.7 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 45,87,000 |
| Equity Shares Prior to the Issue | 1,24,00,000 |
| Equity Shares after the Issue | 1,69,87,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 26th April 2024 |
| Initiation of Refunds | on or Before 29th April 2024 |
| Credit of Equity Shares: | on or Before 29th April 2024 |
| Listing Date: | on or Before 30th April 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 2.88 | 15.28 | 26.90% | 10.72 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Shivam Chemicals Ltd stands as a prominent manufacturer of Hydrated Lime (Calcium Hydroxide) and a reputable distributor of assorted products including Poultry feed supplement (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, and Limestone Powder.
With a wealth of experience and expertise, the company boasts a robust marketing network spanning across India, facilitating the distribution of animal feed products sourced from esteemed manufacturers. Offering a diverse range of high-quality feed products encompassing poultry, cattle, and specialized chemicals, Shivam Chemicals is committed to excellence. Recently, the company has made significant strides by acquiring land and establishing a cutting-edge manufacturing facility with an impressive annual production capacity of 60,000 MT of hydrated lime. With ambitions to expand its domestic customer base and penetrate new geographical markets, Shivam Chemicals is poised for substantial growth. Investors keen on participating in this promising venture can consider applying for the upcoming IPO, which presents an opportunity to be part of Shivam Chemicals’ journey towards expansion and success. |
| Company Contact Info: |
|---|
| Shivam Chemicals Limited Office No. 108, 1st floor, Hubtown Solaris, off N.S. Phadke Marg, Saiwadi, Andheri (E), Mumbai – 400069. Tel No.: +91 98199 68855 Email ID: info@shivamchem.com Website: www.shivamchem.com |
| Registrar to the Issue: |
|---|
| CAMEO CORPORATE SERVICES LIMITED Subramanian Building, No. 1, Club House Road, Chennai – 600 002. Tel.: +91 – 44 – 40020700 (5 Lines) E-mail: priya@cameoindia.com Website: www.cameoindia.com |
| Lead Manager to the Issue: |
|---|
| ARYAMAN FINANCIAL SERVICES LIMITED 60, Khatau Building, Ground Floor, Alkesh Dinesh Modi Marg Fort, Mumbai – 400 001 Tel No.: +91 22 6216 6999 Email: ipo@afsl.co.in Website: www.afsl.co.in |
| Check IPO Allotment Status: |
|---|
Cameo Website: http://www.CameoIPO.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
