Shiv Texchem Limited IPO

Apply 0
Avoid 0

Shiv Texchem Limited operates in the import and distribution of hydrocarbon-based chemicals that are essential raw materials across a variety of industries. These chemicals include Acetyls, Alcohols, Aromatics, Nitriles, Monomers, Glycols, Phenolics, Ketones, and Isocyanates. These chemicals are critical inputs for industries such as paints and coatings, printing inks, agrochemicals, specialty polymers, pharmaceuticals, and specialty industrial chemicals.

Core Business Focus: Import and Distribution of Hydrocarbon-Based Chemicals

In the petrochemical industry, there are various base chemicals that serve as the building blocks for derivative chemicals, known as secondary and tertiary chemicals. Their business focuses on importing and redistributing these secondary and tertiary chemicals, which are essential raw materials for multiple industries. For example, benzene—a fundamental base chemical—is utilized to produce phenol, styrene, and aniline, which are secondary and tertiary chemicals widely used in industries including:
i. Paints and Coatings                    ii. Printing Inks                           iii. Agrochemicals
iv. Pharmaceuticals                        v. Specialty Polymers                vi. Industrial Chemicals
Their role in the value chain includes sourcing these chemicals from international producers and suppliers and redistributing them to domestic industries to ensure a reliable and timely supply of these critical inputs.

Key Customers and Market Reach

They have successfully delivered hydrocarbon-based chemicals to a diverse range of customers, which includes companies such as Apcotex Industries Limited, Hemani Industries Limited, and Gujarat Fluorochemicals Limited. Their strategic sourcing from various international markets enables their to maintain a reliable supply chain and meet the diverse needs of their customers in different industries.

Conclusion

Shiv Texchem Limited plays a critical role in bridging the gap between global suppliers of hydrocarbon-based chemicals and domestic industries. Their comprehensive import and distribution capabilities ensure that a wide range of industries—including paints, coatings, agrochemicals, pharmaceuticals, and specialty chemicals—have reliable access to high-quality raw materials for their production processes. By serving as a preferred sourcing partner, they add value to their customers through efficient supply chain management, strategic sourcing, and customer support, ultimately contributing to the smooth and uninterrupted manufacturing of various industrial products.

Objects of the Shiv Texchem Limited IPO:

The Company intends to utilize the gross proceeds raised through the Issue towards the following objectives: i. To meet long-term working capital requirements; and ii. General Corporate Purposes.

Shiv Texchem Limited IPO Details:

Open Date: Oct 08 2024
Close Date: Oct 10 2024
Total Shares: 6,105,600
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 101.35 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 158 - 166 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 15 2024

Promoters And Management:

(i) Vikas Pavankumar, Managing Director and Chairman of the Company since July 8, 2024, has been with them since April 2021. He holds a bachelor's degree in Industrial Engineering from Purdue University (2009) and a Management degree from the Indian School of Business (2014). Previously a Senior Associate at Boston Consulting Group, he currently oversees sales, marketing, business development, and HR, playing a key role in expanding both domestic and international markets. (ii) Hemanshu S. Chokhani, Whole-Time Director and CFO of the Company since July 8, 2024, has been with them for 19 years. He ranked 14th in the Professional Education Examination-I (2005) by the Institute of Chartered Accountants of India and obtained a Post-Graduate Diploma in Management from IIM Ahmedabad in 2011. Previously, he worked as a Senior Consultant at Booz & Co. His expertise has significantly contributed to competitive procurement, trade finance, and overseeing accounts, audits, taxation, and statutory compliances for the Company. Shyamsundar Chokhani, Whole-Time Director of the Company since July 8, 2024, has been with them for 19 years. He holds a master's degree in Mechanical Engineering from IIT Bombay (1973) and completed a Middle Management Course from IIM in 1973. He has been instrumental in the Company's success and currently oversees logistics, including inbound logistics, vessel chartering, local logistics, and domestic banking.

Financials of Shiv Texchem Limited IPO:

 
Description Q1FY25 FY24 FY23 FY22
Revenue from Operations (Net) 56604.99 153490.41 111759.06 85865.83
Other Income 102.84 178.38 107.92 681.63
Total Revenue 56707.83 153668.79 111866.98 86547.46
Purchase of Stock-in-trade 53288.62 147873.18 121964.27 93276.02
Change in inventories of traded goods -899.32 -8088.06 -18595.74 -12934.4
Employees Benefit Expenses 99 333.63 268.81 206.57
Finance Costs 522.87 1887.97 1535.41 396.94
Depreciation & Amortisation Expenses 5.81 19.02 20.41 9.86
Other Expenses 2333.28 7558.48 4519.45 3724.31
Total Expenses 55350.27 149584.22 109712.61 84679.3
Profit Before Tax 1357.56 4084.57 2154.37 1868.16
Current Tax 351.98 1073.41 552.38 483.21
Deferred Tax (Income) / Expenses -0.31 -0.14 -0.73 -1.53
Profit / (Loss) for the Year 1005.89 3011.3 1602.72 1386.48
 

Comparison With Peers:

There are no listed companies whose business operations are similar to that of the Company or are of a comparable size to that of the Company.

Lead Manager of Shiv Texchem Limited IPO:

  1. Vivro Financial Services Private Limited

Registrar of Shiv Texchem Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Shiv Texchem Limited Kamla Space, Unit no. 216, 2nd Floor Khira Nagar TPS III, S.V. Road, Santacruz (West) Mumbai - 400054 Phone: +91 96195 11788 Email: cs@shivtexchem.com Website: http://www.shivtexchem.com/

Discussion on Shiv Texchem Limited IPO:

Leave a Reply