Shivam Chemicals IPO: Shares list at 9% premium on BSE SME platform
Upstox
3 min read • Updated: April 30, 2024, 10:39 AM
Summary
The ₹20.18-crore Shivam Chemicals IPO, which was open for subscription from April 23 to April 25, had seen decent demand from investors. The IPO was subscribed 6.65 times during the three-day bidding period.
Shares of chemical manufacturer Shivam Chemicals Ltd made a decent debut on the BSE SME platform on Tuesday, April 30, with the stock listing at an over 9% premium.
The Shivam Chemicals stock opened at ₹48 on Tuesday, up 9.09% compared to its initial public offering (IPO) price of ₹44. Within minutes of trade, the stock rallied further to hit the 5% upper circuit of ₹50.4 apiece, but could not sustain those levels and dropped to ₹47.05 apiece as of 10:35 am.
Since the lot size in the Shivam Chemicals IPO was 3,000 shares, successful bidders who were allotted shares would have been sitting on a profit/loss of ₹12,000 (₹4 x 3,000) as soon as trading began in the stock.
The ₹20.18-crore Shivam Chemicals IPO, which was open for subscription from April 23 to April 25, had seen decent demand from investors. The IPO was subscribed 6.65 times during the three-day bidding period, with bids received for 2.9 crore shares against 43.56 lakh shares on offer, according to BSE data.
The portion reserved for retail investors was subscribed 8.88 times, while that reserved for non-institutional investors saw a subscription of 4.33 times.
The Shivam Chemicals IPO was entirely made up of a fresh issuance of 45.87 lakh shares with no offer-for-sale (OFS) component. There was also an additional market maker allocation of 2.31 lakh shares.
Shivam Chemicals IPO price was fixed at ₹44 per share, with the minimum bid quantity set at 3,000 shares.
The company had said that of the total ₹20.18 crore raised from the market through the IPO, around ₹7.05 crore would be used to meet its working capital needs, ₹5.62 crore for investment in subsidiary firm – Shivam Chemicals and Minerals Pvt Ltd – to enhance its working capital capabilities and ₹5.01 crore for general corporate purposes.
Aryaman Financial Services Ltd was the book-running lead manager of the Shivam Chemicals IPO, while Cameo Corporate Services Ltd was the registrar. Shreni Shares was appointed as the market maker for the issue.
Shivam Chemicals was incorporated as Sun Organosys Pvt. Ltd in October 2010. The name was later changed to Shivam Chemicals Pvt. Ltd in 2012 and the same was changed to Shivam Chemicals Ltd after the company got converted into a public firm in 2023.
Shivam Chemicals is a manufacturer of hydrated lime (calcium hydroxide) and a distributor of various products such as poultry feed supplement (MBM), di-calcium phosphate (feed grade), monocalcium phosphate (MCP), magnesium oxide and limestone powder.