The recent preference for specialty chemical company shares has encouraged unlisted specialty chemical producers to list with the bourses. Gujarat based specialty chemical manufacturing firm Anupam Rasayan has filed the draft prospectus with SEBI seeking approval for its Rs 760 crores IPO plan. Before it, Laxmi Organics from the same segment also applied for SEBI’s nod to float an IPO offer. These companies, along with several others, will make a maiden offer in 2021.
The Company Background Of Anupam Rasayan
Conducting extensive research about the sector and company will help you select the best IPO offers in the market.
Anupam Rasayan, incorporated in 1984, is based in Surat. It has six multi-purpose manufacturing facilities, all located in Gujarat, with approximately 23,396 metric tonnes production capacity. The company mainly operates in agrochemicals, pharmaceuticals, and personal care segments, catering to clients like Syngenta Asia Pacific, Sumitomo Chemical Company and UPL Limited. The company received 95 percent revenue from this vertical.
In fiscal 2020 and in the six months ending in September, the firm clocked 95.37 and 92.48 percent respectively in income from its life-science related specialty chemical vertical. The other vertical, comprising specialty chemical products of pigment, dyes, and polymer additives, contributed respectively 4.63 and 7.52 percent during the same period.
Highlights Of The Offer
- Anupam Rasayan has filed preliminary papers with the market regulator to raise Rs 760 crores from the market
- The company mentioned in DRHP that it intends to use the funds from the process mainly for repayment of debt
- The company has decided to reserve a portion in the offer for its employees and may even offer discounts to eligible ones
- Anupam Rasayan is in talks with merchant banks like Axis Capital, Ambit Private, IIFL Securities and JM Financial to manage the issue on their behalf
- The company is considering issuing of Rs 100 crores worth of equity shares through private placement route
- If the pre-IPO placement of equities take place, it will reduce the size of the IPO
- Listed peers of Anupam Rasayn, PI Industries, Navin Fluorine International Ltd, Astec Lifesciences Ltd and SRF are currently offering P/E ratio 69.33, 30.25, 46.43 and 30.13, respectively
IPO Performance In 2020
The IPO segment is a significant metric of the stock market performance index. FY 2020-21 has seen a mixed performance from the IPO segment. Amid the rise of the pandemic scares and market volatility, the IPO segment reached an impasse during the first half of the year. However, since July, the market recovered fast, and several of the initial public offerings from companies ranging from speciality chemical, IT, and defence segment received an overwhelming response from investors. Rossari Biotech and Chemcon, both from the same sector of Anupam Rasayan, were massively oversubscribed.
IPO gives investors opportunities to invest in potential companies poised for future growth. It provides a chance to buy company shares at a low price and gain in the long run as share prices appreciate. If you would like to invest in IPO offers like Anupam Rasayan IPO, open your first Demat with Angel One.