Shivalik Rasayan - Value Play

(EL) #21

Thanks, I think you are on to something.
I am not sure as well, I first thought they have already issued shares but now learnt that they have not already issued shares.
Todays board minutes say of further preference shares issue at the low price
If true its not a good sign from the existing promoters.
Markets are down but I am not sure if the sell off in this script was due to mornings board meeting or general selloff across the market

(Padmanabha) #22

It is not newly issued shares. Out of total proposed 44lakh preferential issue around 32 crore got issued in last board meeting. So more than 100 crore came to books in September. The money they will be using in the new capex. Remaining 12 lakh shares will be converted later, may be in March or during the finishing stage of the project. Further the preferential shares were proposed around 6 month back and the guidelines for fixing price was followed and was allotted around market price.

(Padmanabha) #23

Puneet, Hope you have attended the AGM yesterday. Please share the gist and important findings if any.

(KhokanSarkar) #24

Please add some view those who joined Shivalik AGM this year.

(puneetc) #25

Sorry for the delayed response.
I did manage to attend the AGM.
Sadly, I was the only investor present, remaining attendees were employees.
Found the promoters quite open and welcoming towards questions. The actual AGM lasted barely 5 minutes. Post the AGM, I had a one to one conversation with the Chairman and the MD. I found the Management to be quite conservative and rational, didn’t make any hi-fi claims with hefty targets.
Apologies for the unstructured notes, I’m writing whatever I’m able to recall:
-All the approvals for the Gujarat plant have been obtained and they will shortly announce the commencement of the construction.
-The plant will have 8 units and they are confident to get atleast 1 unit operational by Oct-19.
-The requirement for capex is huge even after taking in the recent pref issue of over 100cr. Management isn’t in favor of taking any debt for the purpose of capex and want to do majorly it through internal accruals and the funds raised.
-Strong focus on R&D. They’ve hired a new team of scientists for their new R&D center at Bhiwandi.
-They primarily want to ride the Make in India wave and want to focus on APIs which most of the Indian Formulation players import from China
-In the preferrential allotment, Pharmadanica(Danish pharma firm and other promoter of Medicamen) also participated through related entities which shows their confidence in the promoters

Disc: Invested and adding

(Padmanabha) #26

Thank u for sharing the details. Is there any updates on progress of Oncology project of Medicamen Bio?

(puneetc) #27

I didn’t get to discuss much regarding Medicamen. Though, in the brief mention, they said that the work regarding the oncology plant is going as per schedule and should be commisioned by early next year.

(puneetc) #28

Another good news. Mr Shrawat played a crucial role in scaling up the sales at Shilpa Medicare from by 8x in his tenure. Hope to see similar feat by him at Shivalik.

(EL) #29

Wow a COO of shilpa joins a much smaller company
Usually for a good cv and your career you want to join a bigger company as there is also better pay, benefits, social prestige by being associated with a bigger firm which is another stepping stone for greater heights
Who would risk their career unless they were certain joining Shivalik is going to be more exciting and rewarding than a bigger company
Exciting times

(Karanops) #30

There may be other reasons also. May be he ran out of options.