Anupam Rasayan IPO opens Mar 12; grey market premium soars 58% on price band announcement; check details

By: |
March 8, 2021 10:42 AM

Anupam Rasayan India Ltd's Rs 760-crore initial public offering (IPO) will open for subscription on Friday, March 12, 2021.

anupam rasayam IPO, IPOAnupam Rasayan makes specialty chemicals that involve multi-step synthesis and complex chemistries. (Image: anupamrasayan.com)

Anupam Rasayan India Ltd’s Rs 760-crore initial public offering (IPO) will open for subscription on Friday, March 12, 2021. The company has fixed price band at Rs 553-555 per share. The public issue will close for subscription on Tuesday, March 16, 2021. Following the announcement of the price band, the grey market premium of Anupam Rasayan India Ltd shares surged to Rs 320 apiece on Monday. The shares were seen trading at Rs 875 apiece over the IPO price in the grey market, implying a premium of 58 per cent.

Who can bid for how much?

Investors can bid for a minimum of 27 equity shares and in multiples thereafter, translating to a minimum investment Rs 14, 985. Up to half of the net issue will be reserved for the qualified institutional buyers (QIBs), while not less than 35 per cent of the portion for the retail category. The remaining 15 per cent of the issue will be set aside for the non-institutional category. While a total of 2.20 lakh shares have been reserved for eligible employees.

The book running lead managers to the issue are Axis Capital Ltd, Ambit Private Ltd, IIFL Securities Ltd and JM Financial Ltd. While the registrar to Anupam Rasayan India Ltd will be KFin Technologies Private Ltd. Equity shares of Anupam Rasayan India Ltd are proposed to be listed on BSE and National Stock Exchange. The company operates six multi-purpose manufacturing facilities in Gujarat, with four facilities located at Sachin and two located at Jhagadia.

Anupam Rasayan will join these listed peers

Anupam Rasayan India’s listed peers include PI Industries, Navin Fluorine International Ltd, Astec Lifesciences Ltd and SRF, with P/E of 695.72x, 32.20x, 462.73x and 30.58x, respectively. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told Financial Express Online, at the price of Rs 555, the annualised PE based on 9MFY21 EPS comes to 69, which looks fully priced. “On the financial front, the company has performed exceptionally well as the total revenue increased at a CAGR of 24.29% from fiscal 2018-2020. At the same time robust growth in the export segment is being witnessed with a CAGR of 32.94%. The operational margins are healthy and rapidly growing,” Doshi said.

Abhay Doshi said that the China+1 strategy is likely to be adopted by global players, which should further fuel the exports. “So, even though the issue is fully priced, we expect the IPO to get huge fancy owing to its robust growth,” he added.

Anupam Rasayan makes speciality chemicals that involve multi-step synthesis and complex chemistries. A major chunk of its revenue i.e around 95 per cent, comes from the agrochemical, personal care and pharmaceutical sectors. Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, told Financial Express Online that with India’s increasing focus on health and hygiene and increasing food demand globally, Anupam Rasayan India Lts could turn out to be a beneficiary in the near term.

Axis Capital noted that Anupam Rasayan has developed strong and long-term relationships with various multinational corporations, including Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Co. Ltd. and UPL Ltd. that has helped them expand their product offerings.

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