On July 15 2021, Chemspec Chemicals filed preliminary papers with SEBI to raise Rs. 700 crores via an Initial Public Offering. As per its DRHP, the public issue will consist of an offer for sale by promoters and certain shareholders.
Mitul Vora and Rushabh Vora will offer shares worth Rs. 233.30 crore each. The offer will also include the sale of shares worth Rs. 233.40 by BACS LLP.
Based in Mumbai, Chemspec Chemicals’ products are segregated into two divisions – FMCG and Pharmaceuticals.
This company is engaged in the production of critical additives that are used in skin and hair products. Moreover, it manufactures intermediates for pharmaceutical APIs.
With a market share of 70%, it is the world’s largest manufacturer of an antibacterial ingredient, chemilide. Chemspec’s production takes place at its manufacturing unit in Taloja, Maharashtra. The production facility has been audited as well as approved by the US FDA. Accordingly, Chemspec has become one of the few US FDA-registered companies belonging to the FMCG and pharmaceuticals space.
Here’s how the initial public offering can benefit Chemspec:
Moreover, Chemspec Chemicals IPO will provide liquidity to the company’s existing shareholders.
For investors, it’s crucial to know the following information concerning Chemspec’s initial public offering:
Issue type: Yet to be announced
IPO price band: Yet to be announced
Face value: Yet to be announced
Market lot: Yet to be announced
Minimum order quantity: Yet to be announced
Also, one must be aware of the basis of allotment across different investor categories. That said, the issuer is yet to provide information regarding share allocation.
We’ll update all this information once the details are announced.
Individuals must keep in mind that the share allotment depends upon the fresh issue and transfer of OFS shares from promoters and existing shareholders to bidders.
Once you are familiar with all important details regarding the IPO, it’s imperative to look at the key highlights of the company.
Take note of the following pointers regarding Chemspec’s financials:
The following are some of the strengths of Chemspec Chemicals:
While the company’s outlook remains positive, here are some concerns to take note of before investing:
Most of the information in relation to the Chemspec Chemicals is yet to be announced. Once the issuer discloses them, investors must check them thoroughly and analyse the company’s strengths, weaknesses, financials, etc., before making a decision.
Chemspec has a debt-equity ratio of 0.58% at the time of writing.
Once the IPO is open for subscription, investors can apply via their Angel One account through UPI. New users can open their DEMAT account for free to subscribe.
The registrar of Chemspec IPO is not yet announced.
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