Shiva Pharmachem Ltd Files DRHP With SEBI To Raise Rs 900 Cr Via IPO

Vadodara-based Shiva Pharmachem, a leading manufacturer of acid and alkyl chlorides has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through an initial public offering (IPO). The IPO, which has a face value of Rs 2 per share, is an offer for sale (OFS) of up to Rs 900 crore by the promoter and promoter group selling shareholders.

Vishal Rakesh Agrawal is offloading up to Rs 383 crore, Rahul Rakesh Agrawal is selling up to Rs 383 crore, and Geetganga Investment Private Limited is offloading up to Rs 134 crore via OFS. The offer is being made through the book-building process, in which 50% of the net issue is allocated for Qualified Institutional Buyers (QIBs) on a proportionate basis, 15% of the offer for allocation to Non-Institutional Bidders, and 35% of the offer is available for allocation to retail individual bidders.

The book running lead managers are JM Financial Limited and Kotak Mahindra Capital Company Limited, and the registrar is Link Intime India Private Limited. The equity shares are currently proposed for listing on the BSE and NSE.

Shiva Pharmachem, founded in 1999 by Mr. Rakesh Agrawal (Non-Executive Chairman), Mr. Vishal Agrawal (Managing Director), and Mr. Rahul Agrawal (Non-Executive Director), has over twenty years of expertise in the chemical sector. It served over 181 global and domestic enterprises in 22 countries as of FY23. Germany, the United States, Switzerland, Italy, and Mexico are among its key markets. The company has manufacturing plants in Luna, Gujarat, Dahej, Gujarat, and Sajóbábony, Hungary. The Hungarian factory is notable for its advanced phosgenation capabilities, specialising in phosgene-based intermediates.

Its product lines include aliphatic and aromatic chlorides, aliphatic and aromatic nitriles, alkoxy ketones, herbicide safeners, thiocarbamates, chloroformates, and isocyanates, among others. These versatile chemicals are used in a variety of industries, including agrochemicals, performance materials, disinfectants, medicines, polymers, and cosmetics, among others. Over 80% of its revenue from operations in FY 23 came from Fortune 500 organisations throughout the world. DuPont Specialty Products USA LLC, Godrej Agrovet Limited, Nouryon Functional Chemicals B.V., Reckitt Benckiser (India) Private Limited, SRF Limited, and Syngenta Crop Protection AG are among its clients.

Navin Fluorine International Limited, Clean Science and Technology Limited, and Aether Industries Limited are among the companies that Shiva Pharmachem competes with. For fiscal year 2023, consolidated revenue from operations climbed 6.25% to Rs 1,079.47 crore from Rs 1,015.99 crore in FY22, owing mostly to a rise in revenue from product sales. From Rs 83.32 crore in fiscal 2022 to Rs 116.65 crore in fiscal 2023, net profit grew by 40%.