Shiv Texchem Limited made a remarkable debut on the BSE SME on October 15, 2024, listing at ₹239, a premium of 44% over its issue price of ₹166. The IPO was one of the most highly anticipated offerings of the year, and the listing premium reflected the enthusiasm in the market.
With a subscription rate of 156.55 times, the IPO attracted significant interest across all investor categories, particularly retail investors and non-institutional investors (NIIs).
Key Details of Shiv Texchem IPO
| Details | Information |
|---|---|
| IPO Price | ₹166 per share |
| IPO Size | ₹101.35 crore |
| Shares Offered | 61.06 lakh shares |
| Subscription Rate | 156.55 times |
| Grey Market Premium (GMP) | ₹65 |
| Listing Date | October 15, 2024 |
| Lot Size | 1200 shares per lot |
| Lead Manager | Vivro Financial Services Pvt Ltd |
| Registrar | Link Intime India Private Ltd |
IPO Subscription Status
The Shiv Texchem IPO received an overwhelming response from investors, with a total subscription of 156.55 times by the end of the bidding period. Here’s the breakdown of the subscription across different investor categories:
- Retail Investors: Subscribed 68.27 times
- Qualified Institutional Buyers (QIBs): Subscribed 86.70 times
- Non-Institutional Investors (NIIs): Subscribed 455.58 times
The strong demand from NIIs and QIBs reflected the market’s confidence in the company’s growth potential and financial stability.
Grey Market Premium and Listing Gains
The Grey Market Premium (GMP) for the Shiv Texchem IPO stood at ₹65, indicating healthy listing gains for investors. The strong GMP translated into a 44% premium on the listing day, with shares opening at ₹239 on the BSE SME. This exceeded the market’s initial expectations of a 39% premium, as anticipated from the GMP.
About Shiv Texchem: A Growing Chemical Player
Shiv Texchem Limited was founded in 2005 and has become a prominent importer and distributor of secondary and tertiary chemicals derived from hydrocarbons. These chemicals are essential raw materials used in various industries, including textiles, agriculture, and pharmaceuticals.
The company has seen steady growth over the years, leveraging its strategic partnerships with global chemical manufacturers and expanding its distribution network across India.
Use of IPO Proceeds
The ₹101.35 crore raised through the IPO will be used for:
- Working Capital: A significant portion of the funds will be allocated towards meeting the company’s long-term working capital requirements.
- General Corporate Purposes: The remaining proceeds will be utilized for corporate expansion and improving operational efficiencies.
Future Prospects and Expert Opinions
Shiv Texchem’s strong listing and positive outlook have garnered favorable reviews from analysts. Here’s what they are saying:
Hem Securities: Positive Long-Term Prospects
“The company’s established track record in the chemical sector, combined with its strategic positioning as a key supplier of hydrocarbons, makes it a solid long-term bet. The capital raised through the IPO will allow Shiv Texchem to expand its operational capabilities, fueling further growth.”
Investment Bazaar: Buy for the Long Term
“Shiv Texchem’s IPO received excellent investor response, and its 44% premium listing shows market confidence. Investors with a long-term horizon should hold on to the stock, as its fundamentals remain strong.”
Risk Factors to Consider
While Shiv Texchem has made a strong debut, investors should consider the following risks:
- Volatile Commodity Prices: Being in the chemical industry, fluctuations in raw material prices could impact margins.
- Competitive Landscape: The company faces competition from both domestic and international players, which could limit its market share growth.
Conclusion: A Solid Bet for Long-Term Investors
Shiv Texchem’s strong listing and market reception reflect its potential as a growing player in the chemical industry. Investors who secured shares during the IPO are already reaping gains, and the company’s future growth trajectory appears promising.
For long-term investors, Shiv Texchem remains an attractive option, especially given its established market presence and expansion plans.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. Always consult with a financial advisor before making any investment decisions.