Shiva Pharmachem Files IPO Prospectus with SEBI, Aims to Raise Rs 900 Crore

22 Aug 2023 , 08:42 AM

Shiva Pharmachem, a manufacturer of acid and alkyl chlorides, has submitted its draft red herring prospectus to the Securities and Exchange Board of India (SEBI) for an initial public offering on August 21.

According to the draft documents filed with the market regulatory body, the company plans to generate Rs 900 crore through a public issue, which will exclusively consist of an offer for sale (OFS) by its promoters.

Promoters Vishal Rakesh Agrawal and Rahul Rakesh Agrawal will divest shares valued at Rs 383 crore, while Geetganga Investment will offload stocks worth Rs 134 crore through the OFS mechanism.

The offering will adhere to the book building process, where up to 50% of the offer will be proportionately available for allocation to Qualified Institutional Buyers, 15% for non-institutional bidders, and 35% for retail individual bidders.

As of 2022, the company, fully owned by its promoters, boasts three facilities located at Luna and Dahej SEZ in Gujarat, as well as Sajóbábony in Hungary. Shiva Pharmachem claims the distinction of being the largest volume manufacturer of acid and alkyl chlorides in India.

In the fiscal year 2023, over 80% of its business was derived from exports. The company served 181 multinational and domestic clients during this period, offering a diverse range of over 100 specialized products, including aliphatic and aromatic chlorides, nitriles, alkoxy ketones, herbicide safeners, thiocarbamates, chloroformates, and isocyanates.

These products find applications in sectors such as agrochemicals, performance materials, disinfectants, pharmaceuticals, polymers, and cosmetics. Notable customers include DuPont Specialty Products USA LLC, Godrej Agrovet, Nouryon Functional Chemicals BV, Reckitt Benckiser (India), SRF, and Syngenta Crop Protection AG.

The IPO is being managed by JM Financial and Kotak Mahindra Capital Company, while Link Intime India has been appointed as the registrar for the offer.