Shivam Chemicals stock lists at 9% premium on BSE SME platform

The IPO, which was a fresh equity issue of 45.8 lakh shares, received a decent response from investors with an overall subscription of 6 times at close.

Net proceeds from the public offer are proposed to be used for funding working capital requirements, investment in subsidiary and general corporate purposes.

The company is a manufacturer of Hydrated Lime (Calcium Hydroxide) and a distributor of various products such as Poultry feed supplement (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, Limestone Powder, etc.

With rich experience, Shivam Chemicals has built a well-established marketing network across India and distributes animal feed products for various well-renowned manufacturers.

Over the years, it has successfully supplied over 2.5 lakh metric tons of various products. The cumulative value of these supplied products exceeded Rs 750 crore.

With an average monthly sales volume of 2,650 metric tons, the company maintains a consistent presence and contributes to the steady flow of products in the market.

The company has recently established a wholly-owned subsidiary Shivam Chemicals and Minerals with a manufacturing capacity of 60,000 MT. They are engaged in the manufacturing of Hydrated lime (Calcium hydroxide).

The Indian animal feed market size reached Rs 95,670 crore in 2022. Looking forward, IMARC Group expects the market to reach Rs 1.57 lakh crore by 2028, exhibiting a growth rate (CAGR) of 8.2% during 2023-2028.

For the period ended December 2023, the company reported revenues of Rs 107 crore and the profit after tax was at Rs 70 lakh.

acted as the book-running lead manager to the IPO, while Cameo Corporate Services was the registrar.