Shivam Chemicals Ltd IPO

The company derives revenue from distribution of animal feed nutrients and chemical products with preserving quality of the highest international standards and any reduction in demand or in the production of such products could have an adverse effect on its business, results of operations and financial condition.

100% Trading activities till FY 22-23 in holding company and started manufacturing activity in its wholly owned subsidiary company from FY 23-24, diversification into manufacturing could lead to increased costs, resource allocation issues, and potential conflicts of interest between the two entities.

Manufacturing activity is carried out by the subsidiary company & they have recently started its manufacturing activity of producing hydrated lime product.

Its subsidiary's company's Manufacturing activity are Capital intensive.

Capacity utilization will gradually increase Year over Year and any inability to fully utilize the capacity could have an adverse effect long-term profitability, business & financial condition.

The company is trading in many products, for details you can refer its business chapter, however major revenues which account for more than 20% of revenue for FY 22-23 are generated from Animal Feed Supplement Di-Calcium Phosphate, Di Calcium Phosphate and Poultry Feed Supplement. Any adverse changes in market conditions, such as a decline in demand or increased competition for those specific products, could significantly impact the company's revenue and profitability.

The company Shivam Chemicals Limited has concentrated customer base, making it significantly dependent on few customers for its revenue. The loss of any one or more of such customer may have a material effect on its business operations and profitability.

The deployment of the Net Proceeds from the Issue are based on management estimates and have not been independently appraised by any bank or financial institution and is not subject to any monitoring by any independent agency and the Company's management will have flexibility in utilizing the Net Proceeds from the Issue.

Its Promoters, certain of the company's Directors, Key Managerial Personnel and Senior Managerial Personnel are interested in the Company's performance in addition to their remuneration, salary and reimbursement of expenses.

The company has reported negative net cash flows in the past and may do so in the future.