Shiva Pharmachem files DRHP to raise ₹900 crore via IPO

Speciality chemicals manufacturer Shiva Pharmachem plans to raise ₹900 crore from the primary market and has filed preliminary papers for its maiden public issue.

The Vadodara-based 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).

Shiva Pharmachem IPO is entirely an offer for sale (OFS) of up to ₹900 crore by the promoter and promoter group shareholders.

In the OFS, Vishal Rakesh Agrawal and Rahul Rakesh Agrawal will sell shares of up to ₹383 crore each, and Geetganga Investment Private Limited will offload shares worth ₹134 crore, as per the DRHP.

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The proceeds from the Shiva Pharmachem IPO will go to the selling shareholders 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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Shiva Pharmachem 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.

As of FY23, the company serves over 181 multinational and domestic companies across 22 countries. Its prominent markets include Germany, the US, Switzerland, Italy, and Mexico.

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