Shiv Texchem IPO Listing Details

Shiv Texchem Limited, an importer and distributor of hydrocarbon-based chemicals, made a stellar debut on the Indian stock market on Tuesday, 15th October 2024, with its shares listing at a significant premium to the issue price on the Bombay Stock Exchange (BSE) SME platform.

Listing Details

• Listing Price: Shiv Texchem shares were listed at ₹239 per share on the BSE SME platform, marking an exceptional start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Shiv Texchem had set its IPO price band from ₹158 to ₹166 per share, with the final issue price being fixed at the upper end of ₹166.
• Percentage Change: The listing price of ₹239 on the BSE SME translates to a premium of 44.0% over the issue price of ₹166.

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, Shiv Texchem's share price continued to rise. By 10:38 AM, the stock was trading at ₹250.95, up 5% from its opening price and 51.17% above the issue price, hitting the upper circuit for the day.
• Market Capitalisation: As of 10:38 AM, the company's market capitalisation stood at ₹581.51 crore.
• Trading Volume: The traded volume was 28 lakh shares with a traded value of ₹66.78 crore, indicating significant investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market reacted overwhelmingly positively to Shiv Texchem's listing, exceeding pre-listing expectations. The grey market premium had indicated a listing around ₹231.
• Subscription Rate: The IPO was massively oversubscribed by 156.55 times, with NIIs leading at 455.58 times subscription, followed by QIBs at 86.70 times, and retail investors at 68.27 times.
• Price Band: After opening at ₹239, the stock hit its upper circuit of ₹250.95 (5% above the previous close) during morning trading.

Growth Drivers and Challenges

Expected drivers of future performance:

• Differentiated business model with comprehensive retail and supply chain solutions
• Well-diversified product portfolio and customer base
• Long-standing relationships with customers and suppliers
• Expanding product range and growing customer base
• Focus on providing storage solutions

Potential challenges:

• Dependence on international suppliers for raw materials
• Potential volatility in chemical prices and exchange rates
• Competitive chemical distribution sector

Utilisation of IPO Proceeds

Shiv Texchem plans to use the funds for:

• Meeting long-term working capital requirements
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 37% to ₹1,53,668.79 lakh in FY2024 from ₹1,11,866.98 lakh in FY2023
• Profit After Tax (PAT) rose by 88% to ₹3,011.3 lakh in FY2024 from ₹1,602.72 lakh in FY2023

As Shiv Texchem IPO begins its journey as a listed entity, market participants will closely monitor its ability to leverage its strong supplier and customer relationships, expand its product portfolio, and maintain its growth trajectory. The stellar listing and overwhelming subscription rates suggest extremely positive market sentiment towards the company's prospects in the specialised chemical distribution sector. Investors will be watching for continued revenue growth, margin improvement, and successful execution of the company's expansion plans.