
Vadodara-based Shiva Pharmachem, an acid and alkyl chlorides manufacturer, has filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO) for fundraising.
The IPO consists of an offer for sale (OFS) of up to Rs 900 crore by the promoter and promoter group. The OFS includes sale of shares worth up to Rs 383 crore by Vishal Rakesh Agrawal, up to Rs 383 crore by Rahul Rakesh Agrawal, and up to Rs 134 crore by Geetganga Investment Private Limited.
The IPO will use the book building process, where investors specify the shares they want and the price they’re willing to pay. This helps set the IPO price based on demand. The company plans to allocate up to 50 per cent shares to large investors, at least 15 per cent to smaller investors, and at least 35 per cent to regular individuals.
Founded by Rakesh Agrawal, Vishal Agrawal, and Rahul Agrawal, Shiva Pharmachem has over 20 years of experience in the chemical industry, serving 181 multinational and domestic clients across 22 countries, including Germany, the United States, Switzerland, Italy, and Mexico.
Originally focused on chlorine chemistry, the company expanded to complex chemistry involving advanced intermediates and multi-step processes, with manufacturing facilities in Gujarat and Hungary. The product range of the company includes aliphatic and aromatic chlorides, nitriles, alkoxy ketones, and more, serving sectors like agrochemicals, pharmaceuticals, and cosmetics.
In FY23, over 80 per cent of revenue came from Fortune500 clients. Their FY23 consolidated revenue increased by 6.25 per cent to Rs 1,079.47 crore, and net profit increased by 40 per cent to Rs 116.65 crore.
The competitors of Shiva Pharmachem are firms like Navin Fluorine International, Clean Science and Technology, and Aether Industries.
JM Financial Limited and Kotak Mahindra Capital Company Limited are the book running lead managers, and the equity shares are proposed to be listed on BSE and NSE.