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Chemspec Chemicals IPO

Chemplast Sanmar is a leading manufacturer of critical additives for the FMCG ingredients used in hair and skincare products worldwide. It also manufactures intermediates for pharmaceutical APIs used to formulate antihypertensive drugs.

Chemspec Chemicals IPO Objectives

- Increasing its brand visibility
- Enhancing its brand image
- Offering liquidity to unitholders
- Extending a public market for its equity shares

Chemspec Chemicals IPO - Details

Tentative dates for this Chemspec Chemicals IPO are yet to be announced. However, once the company releases such information, you will find the details right here.

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Listing at NSE, BSE

Chemspec Chemicals IPO Important Dates

IPO Open Date To be announced
IPO Close Date To be announced
Basis Of Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat ACcount
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

Why should you invest in the Chemspec Chemicals IPO?

The Indian FMCG sector has recorded a 9.4% growth during the January to March quarter. Similarly, the pharmaceutical space is expected to touch the $65 billion mark by 2024.

Chemspec Chemicals business is dependent mainly on the performance of these two sectors, among other factors. This indicates upsides for the company.

That said, the shares will be a new entry in the investment space and do not have any substantial market record to gauge their performance. Therefore, investors willing to participate in this upcoming IPO should study the prospects and involved risks before subscribing to its shares.

Financial highlights

In the FY20, Chemspec Chemicals recorded revenue of Rs. 506 crores. It also clocked a net profit worth Rs. 81 crores.

How to apply for Chemspec Chemicals IPO?

You can apply for the Chemspec Chemicals IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Chemspec Chemicals IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Chemspec Chemicals IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Chemspec Chemicals IPO - Company highlights

Here are some of the most noteworthy highlights of this chemical manufacturer –

- Until this March, the company’s manufacturing facility based at Taloja had a production capacity of over 6,000 TPA.

- In the last 3 years, the speciality chemical manufacturer expanded its global distribution network across 43 countries worldwide.

- Chemspec Chemicals is active in Europe, the Middle East, APAC region, inclusive of Japan, North America, and Africa.

- In India, the company is second to none when it comes to manufacturing piroctone olamine.

- It is one of the top 2 global producers of personal care ingredients extensively used in skin and hair care products.

- Chemspec Chemicals is a global leader in terms of producing chemilide (antibacterial ingredient). Its Chemilide occupies 70% of the market share.

- It is among the few global companies in the FMCG and pharmaceutical intermediates space that’s registered with the US FDA.

Chemspec Chemicals IPO - SWOT Analysis

strengths

Strengths

  • Established market position: Chemspec Chemicals has secured its position as a leading chemical intermediate supplier in the global FMCG and pharmaceutical space.
  • Loyal customer base: This company enjoys a decade-long association with most of its domestic and international clientele.
Weaknesses

Weaknesses

  • Working capital-intensive operations: The company operations are extremely dependent on working capital. This can spell trouble if current assets like inventory and receivables are down.
Opportunities

Opportunities

  • Growth prospect: Chemspec Chemical is already active in 43 countries. Given its current market share and flexibility in financials, the growth prospect of this chemical manufacturer is substantial.
Threats

Threats

  • Change in global trade policies: The company enjoys a robust market presence globally. However, any change in trade policies, especially with respect to international trade, could emerge as a challenge.
  • Susceptibility to changes in raw material prices: Typically, raw material accounts for nearly 80% of sales. Any surge in raw material prices could shoot its cost of operation and dent its earnings.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Brand recognition: The company has a global footprint in more than 24 countries with a partnered network of over 1.5 million restaurants.
  • Business model: Zomato follows a B2C business model that connects customers to a wide network of restaurants. The company has an asset-less business model, giving it high financial leverage.
  • Marketing: Zomato follows a robustly creative marketing strategy both online and offline. Accordingly, it has a decent customer engagement and has over 11.2 million active users each month.
  • User-friendly: The Zomato app and web portal come with an easy-to-navigate UI.

Weaknesses 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Opportunities 

  • Market expansion: Zomato is active in 25 countries. Moreover, it has not reached the saturation point yet. Therefore, given its current market momentum and growth potential, it can be expected that the food delivery service will witness upward mobility and rapid market expansion in the next couple of years.
  • Online users: The percentage of smartphones users with interest access is increasing every day. This opens up a great growth opportunity for Zomato to expand its target base and market presence.
  • Technological development: As the tech space continues to bring in newer innovations, it could open newer paths for Zomato to explore.

Threats 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Chemspec Chemicals IPO FAQs

What is Chemspec Chemical IPO?

The company filed the Draft Red Herring Prospectus (DRHP) on 15 July 2021 with the market regulator SEBI for an IPO worth Rs. 700 crores.

When will Chemspec Chemicals IPO be open for subscription?

The tentative dates for this upcoming IPO are yet to be announced.

What is the minimum lot size that retail investors can subscribe to?

The company is yet to share information in this regard.

When is the Chemspec Chemicals IPO listing date?

The IPO timeline has not been shared yet.

How will I receive shares?

Once the shares are allotted, they will be credited to your Demat account.

Who are the merchant bankers for the Chemspec Chemicals IPO?

Axis Capital and JM Financial are the merchant bankers for this upcoming IPO.

What is the minimum order quantity for Chemspec Chemicals IPO?

The company is yet to disclose this information.

Who is the registrar for Chemspec Chemicals IPO?

We will update the information as soon as the company announces the same.

Which categories of investors are allowed to participate in this IPO?

As of yet, there is no clarity on this matter.

Who are the customers of Chemspec Chemicals?

The company has a loyal customer base across different industries.

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