Details of the Fund Raise
The fundraising is structured through two primary instruments. First, the company allotted 2,82,000 equity shares of face value ₹5 each at a premium, totaling ₹7.05 crore. These shares were issued to five individual allottees under the public category.
Second, the board approved 9,47,990 fully convertible warrants at the same price of ₹250 per warrant, aggregating ₹23.70 crore. The warrant allottees include the promoter group entity Growel Remedies Limited, which took 4,28,000 warrants, alongside public entities Bishnoi Exports Private Limited and Ginnerup Capital ApS. This capital infusion is priced at ₹250 per unit, while the stock currently trades at ₹362.05.
Strategic Growth and Expansion
The capital raise follows a period of significant infrastructure investment for Shivalik Rasayan. The company has successfully transitioned from an agrochemical-focused player to an integrated manufacturer with a strong presence in high-value pharmaceutical APIs. Key assets include the USFDA-approved API facility at Dahej-II, which focuses on oncology and non-oncology therapeutic areas.
Furthermore, the commissioning of the Dahej-III plant for agrochemicals and specialty chemicals has significantly boosted production capacities, including a 250 percent increase in Dimethoate technical output. This fresh capital is expected to support working capital needs and R&D initiatives at its Bhiwadi center.
Business and Financial Overview
- Niche leader in agrochemicals as India's largest producer of Dimethoate Technical
- Diversified therapeutic portfolio including Oncology, ARVs, and Cardiovascular APIs
- Operates a DSIR-approved R&D center in Bhiwadi with over 60 scientists
- Reported a TTM Net Profit of ₹13.67 crore with a 112.58% YoY quarterly profit growth
- Strategic backward integration through associate company Medicamen Biotech Limited
- Maintaining a stable promoter holding of 47.37% prior to the current warrant allotment
Financial and Industry Context
Shivalik Rasayan operates with a P/E TTM of 41.71, compared to an industry average of 26.92, reflecting its transition into higher-margin pharmaceutical segments. While the company has faced pricing pressure in traditional agrochemicals, its pivot toward regulated pharma markets in the US, Europe, and Japan has bolstered its valuation. The agrochemical sector in India is currently benefiting from global supply chain shifts, while the API segment continues to see strong demand for oncology intermediates.
With a debt-to-equity profile supported by this equity infusion, the company is positioned to leverage its expanded 5,000 MTPA technical grade capacity.
