The issue from the specialty chemical company will hit the market on March 12, 2021. Investors can subscribe to the offer until the window closes on March 16, 2021. The issue contains fresh scrips worth Rs 760 crores. The issuer has allotted 35 percent of the issue size to retail investors and 2.20 lakh shares amounting to Rs 11 crores to eligible employees, who will also receive a Rs 55 discount on the price.
Anupam Rasayan IPO is the 11th IPO so far, after a few like IFC, Railtel, Home First Finance Company, Stove Craft, Brookfield REIT, and Indigo Paints. The current liquidity glut that resulted in the stellar performance by several initial public offerings encouraged other issuers to jump the bandwagon. Anupam Rasayan is aiming to receive Rs 760 crores from the market from 13,693,693 equity shares. Post-IPO company’s implied capital pegged at Rs 5,527-5,544 crore.
Anupam Rasayan is a Surat-based specialty chemical company engaged in custom synthesis and manufacturing of specialty chemicals used in life science-related and other specialty chemical sectors. The company has six multi-purpose, vertically integrated manufacturing plants located in Gujarat and a dispersed client base, including several MNC.
Founded in 1986, the company has three decades worth of industry exposure and a steady financial record.
Anupam Rasayan has listed peers like PI Industries, Navin Fluorine International, Astec Lifesciences and SRF, with P/E ratio of 695.72x, 32.20x, 462.73x and 30.58x. The industry average P/E ratio stands at 22.63, while Anupam Rasayan has a P/E rate of 72.21 percent based on its recent financial performance.
The firm’s operational revenue grew by 45.03 percent to Rs 539.22 crores during the nine months from April to December 2020 indicates a strong financial and business position. The company enjoys long-term B2C business relation with multinational corporations like Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Co. Ltd. and UPL Ltd. Its export share grew at CAGR 32.94 percent during FY2018-20.
Axis Capital Ltd, Ambit Private Ltd, IIFL Securities Ltd and JM Financial Ltd are the book-running manager, while KFin Technologies Private Ltd. is appointed the registrar by the issuer.
The Anupam Rasayan IPO Offer Details
- For prospective investors, the bidding window will open on March 12, 2020. Bidding for anchor investors, if any, will take place on March 10, 2021
- Anupam Rasayan IPO price fixed at the price band of Rs 535-555
- QIB investors receive a 50 percent quota in the offer. Non-institutional investors and retail investors get 15 and 35 percent reservation.
- The company will utilise a chunk of the fund from its Rs 760 crore IPO to repay long and short-term debt, which stood at Rs 703 crores in December 2020. Rs 564 crores will go towards fully and partially settling debts. The remaining Rs 196 crore will be utilised for general corporate purposes.
Anupam Rasayan: Should You Invest?
The company is an old company with a strong industry presence and financials. Company’s strength lies in
- A long-term relationship with many of its multinational customers
- The company has 55 clients, including 17 MNCs
- The company has increased its export base over the years to Europe, Singapore, Japan, and the US
- Diversified and customised product portfolio with a robust supply chain
- The company has its R&D unit engaged in innovation and improvement. There are six multi-purpose manufacturing units with a strong focus on the environment, sustainability, health and safety
Based on the company’s performance and future business projections, market specialists have assigned a ‘subscribe’ tag to the offer.
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