Speciality chemical manufacturer Shiva Pharmachem plans to raise Rs 900 crore from the primary market and has filed preliminary papers for launching its initial public offering (IPO).
Shiva Pharmachem has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Securities & Exchange Board of India (SEBI) for an initial public offering (IPO).
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The Vadodara-based IPO is an outright offer for sale (OFS) of up to Rs 900 crore by the promoter and promoter group shareholders, in which Vishal Rakesh Agrawal and Rahul Rakesh Agrawal will sell shares of up to ₹383 crore each, and Geet Ganga Investment Private Limited will offload shares worth ₹134 crore, as per the DRHP.
The DRHP further revealed that the proceeds from the IPO issue will go to the selling shareholder and the company will not receive any funds. JM Financial and Kotak Investment Banking are the book running lead managers, while Link Initime India Pvt Ltd is the registrar to Shiva Pharmachem IPO.
Shiva Pharmachem has three facilities at Luna and Dahej SEZ in Gujarat, and Sajóbábony in Hungary. The company claims it to be the largest manufacturer of acid and alkyl chlorides, by volume, in 2022 in India.
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The company reported a net profit of ₹116.65 crore in FY23 as compared to ₹83.32 crore in FY22. The company’s topline in FY23 rose to ₹1,079.5 crore from ₹1015.99 crore in FY22.
The company serves over 181 companies including both multinational and domestic across 22 countries. Its prominent markets include Germany, the US, Switzerland, Italy, and Mexico.