Shiv Texchem shares list at 44% premium to IPO price on BSE SME

Shares of Mumbai-based small and medium enterprise (SME) Shiv Texchem Ltd made a spectacular trading debut on Tuesday, October 15, with the stock listing at a 44% premium on the BSE SME platform.

The stock recovered some of the losses to trade at ₹248 apiece, up 3.77%, on the BSE at 10:20 am.

As the minimum bid quantity to apply for the Shiv Texchem IPO was 800 shares, successful bidders who were allotted shares in the primary issue would have been sitting on listing gains of ₹58,400 (₹73 x 800) per lot after the stock listed on exchanges.

Shiv Texchem IPO details

The ₹101.35-crore Shiv Texchem IPO was open for subscription from October 8 to October 10. The issue was oversubscribed by 156.55 times during the three-day bidding period, with the company receiving bids for 63.57 crore shares compared with 40.6 lakh shares on offer.

Non-institutional investors (NIIs) had led the demand, with the portion reserved for them getting overbid by a whopping 456 times. The qualified institutional buyers’ (QIB) segment was also overbooked by almost 87 times, while the retail category was subscribed more than 68 times.

The Shiv Texchem IPO was a book-built issue consisting entirely of a fresh issuance of 61.06 lakh shares. Price band for the Shiv Texchem IPO was set at ₹158-₹166 per share. The lot size for an application by retail investors was 800 units.

Ahead of the launch of the IPO, Shiv Texchem had also raised ₹28.87 crore through its anchor investor round. The board of directors of the company at their meeting held on October 7 had finalised allocation of 17.39 lakh equity shares to a total of 10 anchor investors at an allocation price of ₹166 per equity share.

The company had said that it intended to utilise the proceeds raised through the issue to meet long-term working capital requirements and for general corporate purposes.

Established in 2005, Shiv Texchem imports and distributes hydrocarbon-based secondary and tertiary chemicals. These chemicals are important raw materials and feedstocks for a wide range of industries such as paints and coatings, printing inks, agrochemicals, specialty polymers, pharmaceuticals, and industrial specialty chemicals.

The company procures these chemicals from international manufacturers and suppliers, distributes them to the domestic industry, and ensures sufficient and timely supplies to manufacturers.

During the financial year 2023-24, Shiv Texchem’s revenue had increased 37% to ₹1,536.7 crore compared to ₹1,118.7 crore in the previous financial year 2022-23. Profit after tax (PAT), meanwhile, had surged 88% to ₹30.1 crore in FY24 compared to ₹16 crore in FY23.