The initial public offering (IPO) of Shivam Chemicals and Minerals, which commenced subscription on April 23, has garnered significant interest from investors. As an SME IPO, Shivam Chemicals IPO presents an opportunity for investors to participate in the growth story of the company. Here’s an in-depth analysis of the IPO, including its subscription status, key details, and the business landscape of Shivam Chemicals.
Subscription Status:
On the second day of the bidding process, April 24, Shivam Chemicals IPO has been subscribed 1.55 times. This indicates a healthy level of investor interest in the offering.
Data available till 1:45 pm shows that the public issue has received bids for 67.38 lakh equity shares against 43.56 lakh shares on offer. Notably, the retail category has shown robust demand, with a subscription of 2.33 times, while the Non-Institutional Investors (NII) category has been subscribed 0.76 times.
Grey Market Premium (GMP):
Despite the strong subscription figures, Shivam Chemicals IPO is not commanding any premium or discount in the grey market. Market observers have noted that the grey market premium (GMP) for Shivam Chemicals IPO today stands at 0. This suggests that shares are trading at their issue price, without any additional premium or discount.
Key Details:
Shivam Chemicals IPO opened for subscription on April 23 and will close on April 25. The IPO allotment is expected to be finalized on April 26, with shares slated to be listed on BSE SME on April 30. This SME IPO amounts to ₹20.18 crore and comprises entirely a fresh issue of 45.87 lakh equity shares. The price band for the IPO has been fixed at ₹44 per share, with a lot size of 3,000 shares. Retail investors are required to invest a minimum amount of ₹132,000.
Utilization of IPO Proceeds:
The company intends to utilize the net IPO proceeds for several purposes, including funding working capital requirements and investment in a subsidiary company to finance the augmentation of its working capital capabilities. Additionally, the proceeds will be allocated towards general corporate purposes, reflecting the company’s strategic approach to leveraging funds for growth and expansion.
Business Landscape:
Shivam Chemicals is engaged in distributing animal feed or poultry products and also operates in the manufacturing of hydrated lime. The company’s business model encompasses both distribution and manufacturing, positioning it strategically in the agricultural and industrial sectors. With a focus on animal feed distribution and hydrated lime manufacturing, Shivam Chemicals caters to diverse market segments, contributing to its revenue diversification and resilience.
Promoters:
The promoters of Shivam Chemicals, namely Sanjiv Vasant, Soham Vasant, and Shivam Vasant, bring a wealth of experience and expertise to the company. Their leadership and vision play a pivotal role in driving the growth and success of Shivam Chemicals. With a commitment to excellence and innovation, the promoters steer the company towards achieving its strategic objectives and enhancing shareholder value.
Conclusion:
In conclusion, Shivam Chemicals IPO presents an attractive investment opportunity for investors seeking exposure to the agricultural and industrial sectors. With a strong subscription response and a compelling business proposition, Shivam Chemicals is poised for growth and value creation. Investors can consider participating in the IPO to capitalize on the company’s potential for expansion and market leadership in its niche segments.
