Speciality chemical manufacturer, Chemplast Sanmar Ltd. is all set to launch its new IPO on 10 August. The company had approached SEBI earlier in May with its preliminary papers. It received the capital markets regulator’s approval later in July.
Here is all you need to know about the initial public offering before investing.
Key Insights into Chemplast’s Upcoming IPO
Part of the Chennai-based Sanmar Group, Chemplast started working on this IPO in March this year. Later, it filed the DRHP to raise Rs. 3,500 crores via an initial public offering.
Know about other details of the IPO here:
- The latest Chemplast Sanmar IPO is going live on 10 August and will close on 12 August 2021.
- This IPO will comprise a new issue of shares worth Rs. 1500 crores. The remaining Rs. 2000 crores will be made up by an offer for sale (OFS).
- Company promoter Sanmar Holdings Ltd. will offload shares worth Rs. 1850 crores, while Sanmar Engineering Services Ltd. will make up for the remaining Rs. 150 crores of OFS.
- The latest issue will be a Book-built type.
Interested individuals can purchase Chemplast Sanmar IPO shares by opening a DEMAT account on the Angel One platform.
Know More about Chemplast Sanmar’s Recent Financials
Operating across 4 locations, Chemplast has its manufacturing units at Tamil Nadu’s Cuddalore, Berigai, Mettur, and Puducherry’s Karaikal. The company focuses on manufacturing speciality paste PVC resin and starting and intermediate materials for agrochemical, fine chemicals, and pharmaceutical sectors.
Have a look at the company financials in recent times –
- The company reported a total income of Rs. 1,265.51 crores in FY20.
- It posted a net profit of Rs. 46.13 crores during this period.
- As of December 2020, the company reported total assets worth Rs. 41,422.14 million.
Chemplast plans to utilise the upcoming IPO’s proceeds for the following purposes –
- Carry out early redemption of its non-convertible debentures (NCDs) in full, using an average of Rs. 1,238.25 crores from the raised funds. This move will help Chemplast improve its leverage ratio and ease its way to raise debts in the future.
- Fulfil other corporate requirements.
The company also hopes its listing will augment brand awareness.
Why Should You Invest in the Chemplast IPO?
Here are some of the company’s key strengths to help you understand how you can benefit from investing in its shares –
- Chemplast is India’s number 1 manufacturer of speciality paste PVC resins and also a prominent producer of hydrogen peroxide and caustic soda in South India.
- It boasts a highly experienced team of managers for streamlined company operations.
- The company also heavily focuses on offering quality products by adopting a vertically integrated business model.
The IBEF estimates India’s chemicals industry to grow at 9.3% by 2025. Plus, polymer products accounted for 75% of total petrochemicals consumption in India in 2019-20. Thus, it hints at steady growth potential for Chemplast products, beneficial for investors in the long run.
Frequently Asked Questions
- What will be the face value of Chemplast Sanmar’s IPO?
Chemplast Sanmar’s latest public offering will be available at Rs. 5 per equity share.
- Where will Chemplast’s latest IPO be available?
- Who is the primary investor of Chemplast Sanmar?
Canadian billionaire Prem Watsa is the primary investor of Chemplast Sanmar.
- Who hasChemplast appointed as merchant bankers for its latest issue?
The merchant bankers are Axis Capital, ICICI Securities, Yes Securities, Credit Suisse Securities (India) Pvt Ltd., Ambit, BOB Capital Markets, IndusInd Bank, HDFC Bank, and IIFL Securities for this issue.