Chemplast Sanmar shares list at loss, debut at discount to IPO price; open at Rs 525

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Updated: August 24, 2021 9:57 AM

Chemplast Sanmar shares have relisted on the stock market after being delisted from the exchanges nearly a decade ago in 2012.

Chemplast Sanmar, Chemplast Sanmar listingUpon successful listing, Chemplast Sanmar has joined the likes of PI Industries, SRF Ltd, Finolex Industries and Navin Fluorine International

Chemplast Sanmar shares made a weak debut on stock exchanges on Tuesday, 24 August 2021, even as BSE Sensex and Nifty 50 were firm. Chemplast Sanmar shares began trading at Rs 525 apiece on BSE today, down nearly 3 per cent from the upper end of the IPO price band of Rs 541 per share. Following this Chemplast Sanmar becomes the third recent listing to trade at discount on listing day, after CarTrade Tech and Nuvoco Vistas. While, it got listed at a premium on NSE, at Rs 550 apiece, up 1.66 per cent over the issue price. Chemplast Sanmar IPO was open during August 10-12. Chemplast Sanmar shares have relisted on the stock market after being delisted from the exchanges nearly a decade ago in 2012. The Rs 3,850-crore IPO was subscribed 2.17 times. At listing, Chemplast Sanmar had a market capitalisation of Rs 8,300.75 crore.

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Upon successful listing, Chemplast Sanmar has joined the likes of PI Industries, SRF, Finolex Industries and Navin Fluorine International. Chemplast Sanmar is a specialty chemicals manufacturer in India with focus on specialty paste PVC resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors.

The total production of specialty paste PVC resin in India in the financial year 2020 stood at 78 KTPA against a demand of 143 KTPA. In India, Grasim Industries Ltd. (including Aditya Birla Chemicals), DCM Shriram Limited (DCM Shriram), Gujarat Alkalies and Chemicals Ltd.(GACL), and Reliance Industries Limited (RIL) have a combined capacity of more than 2800 KTPA. Chemplast Sanmar was delisted from BSE, NSE and MSE with effect from June 25, 2012, June 18, 2012, and June 25, 2012, respectively. Post-IPO, the promoter group shareholding in Chemplast Sanmar has dropped to 55 per cent from the 100 per cent while the public shareholding increased to 45 per cent.

Analysts say that having a strong market position in specialty chemicals, the company is well-positioned to capture favourable industry dynamics. Also, industry in which the company enjoys leadership position has high barriers to entry.

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