Vadodara-based Shiva Pharmachem files DRHP for its Rs. 900 crore IPO

Shiva Pharmachem, the largest manufacturer of acid and alkyl chlorides by volume in India in CY 2022 and a key player globally, has filed its Draught Red Herring prospectus (DRHP) with capital market regulator SEBI to raise funds for its 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 offering up to Rs. 383 crore, Rahul Rakesh Agrawal is offering up to Rs. 383 crore, and Geetganga Investment Private Limited is offering up to Rs. 134 crore. The Offer is being made through the Book Building Process, in which not more than 50% of the Offer is available for allocation to Qualified Institutional Buyers on a proportionate basis, not less than 15% of the Offer is available for allocation to Non-Institutional Bidders, and not less than 35% of the Offer is available for allocation to Retail Individual Bidders.

For fiscal year 2023, consolidated revenue from operations increased 6.25% to Rs. 1,079.47 crore from Rs. 1,015.99 crore the previous year, owing primarily to an increase in revenue from product sales. From Rs. 83.32 crore in fiscal 2022 to Rs. 116.65 crore in fiscal 2023, net profit increased by 40%. India's strong position is evident in its chemical exports, ranking 14th globally in exports by value in CY2022. Conversely, the nation is a notable importer of chemicals, securing the 8th rank globally by value in CY2022, as per the F&S Report published in August 2023. JM Financial Limited, and Kotak Mahindra Capital Company Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.