Shiva Pharmachem files IPO papers to raise Rs 900 crore

Shiva Pharmachem, a manufacturer of acids and alkyl chlorides, submitted the draft red herring prospectus to the Securities and Exchange Board of India (SEBI) on August 21 in preparation for raising money through an IPO.

According to the draft documents submitted to the market regulator, the company intends to raise Rs 900 crore through a public offering, which will only include an offer for sale (OFS) by its proprietors.

Vishal Rakesh Agrawal and Rahul Rakesh Agrawal, the promoters, would sell shares worth Rs 383 crore, and Geetganga Investment will sell equities via OFS for Rs 134 crore.

Hence, the Gujarat-based speciality chemicals company will not receive any money from the public issue. All the money, excluding issue expenses, will go to selling shareholders.

The 100 percent promoter-owned company with three facilities at Luna and Dahej SEZ in Gujarat, and Sajóbábony in Hungary claimed to be the largest manufacturer of acid and alkyl chlorides, by volume, in 2022 in India.

JM Financial and Kotak Mahindra Capital Company are appointed as merchant bankers to the issue, while Link Intime India is the registrar to the offer.

Source: Media Reports