Shiva Pharmachem IPO: Leading Acid and Alkyl Chloride Giant Set to Launch IPO, Files Papers with SEBI
Shiva Pharmachem IPO
Shiva Pharmachem IPO: Pioneering Acid and Alkyl Chloride Giant Ventures into IPO Territory
The industrial landscape is often marked by companies that shape entire sectors through their innovative products and unwavering commitment to excellence.
Shiva Pharmachem, a key player in the realm of acid and alkyl chloride production, is primed to make waves in the financial world with its decision to enter the Initial Public Offering (IPO) space.
This company, hailing from the vibrant state of Gujarat in India, recently filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), paving the way for its IPO aspirations.
In this in-depth exploration, we delve into the details of Shiva Pharmachem’s journey, its strategic IPO plans, its formidable presence in the acid and alkyl chloride domain, and its financial performance that underscores its prowess in the market.
Leading the Acid and Alkyl Chloride Frontier
Shiva Pharmachem has secured a distinguished position in the chemical manufacturing arena, particularly in the acid and alkyl chloride segment.
By volume, the company stands as the largest acid and alkyl chloride manufacturer in India, a remarkable achievement that speaks volumes about its operational scale, product quality, and market reach.
This commanding presence is a result of the company’s dedication to delivering high-quality chemical products that serve a range of industries, from agrochemicals to cosmetics.
A Promising Leap: Shiva Pharmachem IPO
The decision to go public through an IPO reflects Shiva Pharmachem’s strategic vision and ambition for growth. The company’s IPO journey officially began with the filing of a draft red herring prospectus (DRHP) with SEBI on August 21.
The IPO is expected to have a total value of Rs 900 crore. In a unique twist, the IPO will consist entirely of an Offer for Sale (OFS), which means that no new shares will be issued.
The promoters will use the IPO as an opportunity to divest their existing shares. Notably, the entire offering will comprise shares owned by the promoters, reflecting their commitment to the company’s growth and financial expansion.
Shiva Pharmachem IPO in Detail
Shiva Pharmachem’s IPO, valued at Rs 900 crore, will solely consist of shares offered for sale by the promoters.
Promoters Vishal Rakesh Aggarwal and Rahul Rakesh Aggarwal will sell shares worth Rs 383 crore, while Geetganga Investment is expected to divest shares worth Rs 134 crore.
The unique structure of this IPO implies that the company itself will not directly benefit from the IPO proceeds. Instead, the shareholders offering their shares for sale will receive the funds generated from the sale.
The IPO is being facilitated by reputable merchant bankers, with JM Financial and Kotak Mahindra Capital at the helm.
Additionally, Link Intime is the appointed Registrar to the Issue, ensuring a smooth and efficient process for all stakeholders involved.
Shiva Pharmachem: A Glimpse into Operations
Shiva Pharmachem’s operational prowess extends beyond its market presence. The company operates manufacturing facilities at key locations, including Loon and Dahej in Gujarat, India, and Szobaboni in Hungary.
These facilities serve as the backbone of the company’s production capabilities, enabling it to meet domestic and international demand for its specialized chemical products.
Over 80 percent of Shiva Pharmachem’s business is directed towards exports, demonstrating its international standing and appeal.
The company boasts a strong network of partners, including 181 multinational corporations (MNCs) and domestic firms. Its diverse product portfolio encompasses more than 100 specialized chemical products, such as aliphatic and aromatic chlorides, nitriles, alkyl ketones, and herbicide safeners.
These products find applications in industries ranging from agrochemicals and performance materials to disinfectants, pharmaceuticals, polymers, and cosmetics.
Financial Performance: Fueling Growth with Innovation
Shiva Pharmachem’s financial performance speaks volumes about its business acumen and strategic approach.
In the fiscal year 2023, the company’s operational revenue surged by 6.2 percent year-on-year, reaching a substantial Rs 1,079.5 crore.
This growth is indicative of the company’s ability to navigate market dynamics and consistently deliver value to its customers.
The net profit figures tell a compelling story of growth as well. The company’s net profit increased by an impressive 40 percent, reaching Rs 116.65 crore in FY 2023.
This financial achievement underscores Shiva Pharmachem’s efficient management of resources, innovation-driven approach, and unwavering focus on operational excellence.
In addition to the net profit surge, the company witnessed a notable increase in its margin. The margin expanded by 2.59 percent, reaching 10.66 percent in the same period.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also experienced a substantial jump, growing by 27.8 percent to Rs 204.2 crore.
This translated to an EBITDA margin increase of 3.20 percent, reaching an impressive 18.92 percent. The company’s robust financial performance is further reflected in its loans, which surged by 8.3 percent to reach Rs 347.1 crore.
Conclusion: Navigating the Path Ahead
Shiva Pharmachem’s decision to embark on an IPO journey reflects its commitment to innovation, growth, and market leadership.
As the largest acid and alkyl chloride manufacturer by volume in India, the company’s trajectory has been characterized by operational excellence, customer-centricity, and a keen understanding of market dynamics.
The IPO not only presents an opportunity for the company’s stakeholders to participate in its growth story but also underscores the potential of the chemical manufacturing industry to innovate and adapt.
With a proven track record of financial success, an expansive product portfolio, and a strategic focus on growth, Shiva Pharmachem is positioned to navigate the complexities of the market with confidence.
As the IPO process unfolds, it marks a pivotal moment for the company, signaling its determination to not only shape the acid and alkyl chloride industry but also redefine the parameters of success in the global chemical manufacturing landscape.
