Shivam Chemicals Limited IPO

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Shivam Chemicals Limited is a prominent Indian company specializing in both the manufacturing and distribution of various chemical and animal feed products. With its comprehensive expertise and a well-established network, the company has solidified its position as a key player in the industry.

Manufacturing Capabilities:

Shivam Chemicals Limited has ventured into manufacturing through its subsidiary, Shivam Chemicals and Minerals Private Limited, which operates a plant in Dahej, Gujarat. This facility boasts a significant capacity of 60,000 metric tons and focuses on producing Hydrated Lime (Calcium Hydroxide).

Distribution Network:

In addition to manufacturing, the company is a renowned distributor of a wide array of products critical to various industries. These products include:

  • Poultry Feed Supplement (Meat and Bone Meal – MBM)
  • Di-Calcium Phosphate (Feed Grade)
  • Magnesium Oxide
  • Limestone Powder

These items are distributed across India, benefiting from the company’s extensive and well-established marketing network.

Historical Growth and Evolution

Shivam Chemicals began its journey focusing primarily on the trading of animal feed supplements, a sector in which it has amassed considerable expertise until FY 2022-23. The strategic decision to expand into manufacturing has further strengthened its market position and enhanced its operational capabilities.

This evolution marks a significant milestone in the company’s history, allowing for greater control over its production processes and an improved supply chain mechanism to support its diverse distribution channels.

Future Directions

Looking ahead, Shivam Chemicals Limited plans to continue expanding its market reach and enhancing its product lineup to meet the growing demands of the industry. The company aims to leverage advanced technology and innovative practices to increase efficiency and sustainability across its operations.

With a strong foundation in both manufacturing and distribution, Shivam Chemicals Limited is well-equipped to navigate future market challenges and capitalize on opportunities to foster growth and deliver value to its stakeholders.

In summary, Shivam Chemicals Limited exemplifies a robust and dynamic enterprise, adept at managing extensive product distributions and manufacturing high-quality chemical products. Its strategic initiatives and consistent performance have positioned it as a leader in the industry, poised for continued success and expansion in the years to come.

Objects of the Shivam Chemicals Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects. i. Funding Working capital requirements in our Company; ii. Investment in Subsidiary Co. M/s Shivam Chemicals & Minerals Pvt Ltd. for financing the augmentation of its working capital capabilities iii. General Corporate Purpose
DRHP of Shivam Chemicals Limited IPO
RHP of Shivam Chemicals Limited IPO

Shivam Chemicals Limited IPO Details:

Open Date: Apr 23 2024
Close Date: Apr 25 2024
Total Shares: 4,587,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 20.18 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 44 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 30 2024

Promoters And Management:

Sanjiv Girdharlal Vasant, aged 60 years, is the one of the founding promoters of the Company. He has been a part of the Board since inception and is currently designated as Chairman & Managing Director of the company. He has completed his Bachelor‘s degree in Bachelors of Commerce from Bombay University in the year 1985. He has more than 3 decades of experience in Chemical Industry. He is currently responsible for the overall working of the Company and is instrumental in making strategic decisions. His strong leadership skill, comprehensive understanding of financial management principles, entrepreneurship with commercial acumen and excellent management skill allow the business to grow by way of developing the new clients whilst maintaining its existing customer base. Soham Sanjiv Vasant, aged 35 years, is the one of the founding promoters of the Company and he is also director of the Company & the Subsidiary Company. He has been a part of the Board since inception and is currently designated as Whole Time Director and Chief Financial Officer of the company. He has obtained his degree in Bachelor of Commerce from Bombay University in the year 2009 and he has done Post Graduate Programme in Family Managed Business from the prestigious SP Jain Institute of Management, Mumbai. He has over a decade of experience in Chemical Industry. He primarily handles Sales Operations and now he is instrumental in winning new customers for the company. He is also looking into Banking and handles the entire finance and operation of the Company. Shivam Sanjiv Vasant, aged 28 years is a Whole Time Director of the Company. He has obtained his degree in Bachelor of Engineering (Mechanical Engineering) from Bombay University in the year 2017 and a Master‘s degree in Entrepreneurship from Nottingham University, UK in the year 2019. He joined the Company on July 2019 as Executive Director of the Company. He is responsible for infusing fresh ideas into the business and developing new products. He also manages the entire supply chain for the Company and being the part of the Board of he is providing his Technical knowledge and expertise for growth and expansion of the Company on day to day basis.

Financials of Shivam Chemicals Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 9,550 17,794 15,652 10,693
Other Income 8 4 7 17
Total Revenue 9,558 17,799 15,658 10,711
Cost of raw material consumed 0 0 0 527
Purchase of stock-in-trade 8,367 15,751 14,020 8,984
Change in Inventories 14 3 5 -33
Employees Benefit Expenses 206 262 198 143
Other Expenses 798 1,146 900 813
EBITDA 172 637 536 276
Depreciation & Amortisation 10 10 9 87
Finance Cost 34 28 39 51
EBIT 162 627 528 189
OPM (%) 1.80% 3.58% 3.42% 2.58%
PBT 128 599 488 144
Tax 42 155 131 73
PAT 87 444 357 71
NPM (%) 0.91% 2.49% 2.28% 0.66%
No.of Shares 169.87 169.87 169.87 169.87
EPS 0.51 2.61 2.10 0.41

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Shivam Chemicals Limited 157 4 2.10 20.9 44 75
Narmada Agrobase Limited 49 1 0.48 58.7 22.1 30
Godrej Agrovet Ltd 9,374 295 15.71 33.3 547 10,515
* All the data is as per FY23.

Recommendation on Shivam Chemicals Limited IPO:

Review and Recommendation of Shivam Chemicals by team IZ is 2/10. 1. Shivam Chemicals Limited is a multifaceted organization that stands out in the chemical industry, owing to its dual expertise in manufacturing and distribution. Their operations encompass the production of Hydrated Lime (Calcium Hydroxide) and the distribution of an array of products integral to the animal feed sector. 2. Product Portfolio Their distributed products include: Poultry Feed Supplement (MBM): This product plays a vital role in providing poultry with necessary proteins and minerals. Di-Calcium Phosphate (Feed Grade): It is an essential cattle feed additive, improving calcium and phosphorus levels in their diet. Magnesium Oxide: Used as a dietary supplement, it aids in various metabolic functions. Limestone Powder: Included in feeds for its calcium content, it is indispensable for bone development and eggshell formation. 3. Strategic Growth and Future Prospects Shivam Chemicals Limited is keen on leveraging its accomplishments and market standing to delve into untapped markets within India and overseas. A significant portion of their investments is earmarked for this expansion, which is poised to fortify their market position and boost their growth trajectory. 4. Competitive Edge The competitive landscape in their business sector is shaped by various factors such as client relations, brand reputation, market focus, product quality, pricing, and services. Despite competition from numerous domestic entities and unorganized sectors, their steadfast commitment to quality, their track record of timely service, and their emphasis on transparency set them apart, enabling us to secure a growing market share and customer trust. 5. The Revenue has Increased from Rs.95 Crores in FY21 to Rs.156 Crores in FY23. 6. The EBITDA has Increased from 2 Crore in FY21 to 5 Crores in FY23. 7. The PAT has Increased from 87 Lakhs in FY21 to 3 Crores in FY23. 8. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 0.55, 9. Market Capitalization is 75 Crore & P/E is 79.18x based on FY24.

Lead Manager of Shivam Chemicals Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Shivam Chemicals Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Shivam Chemicals Limited Office No. 108, 1st Floor, Hubtown Solaris Off N.S.Phadke Marg, Saiwadi, Andheri (E), Mumbai,-400069 Phone: +91 98199 68855 Email: info@shivamchem.com Website: https://www.shivamchem.com/

Discussion on Shivam Chemicals Limited IPO:

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