About Chemplast Sanmar IPO

Headquartered in Chennai, Chemplast Sanmar is one of the leading speciality chemical producers in India. The company was established in 1985 and is a subsidiary of SHL Chemicals Group, owned by Sanmar Holdings Limited.

Chemplast Sanmar primarily produces speciality paste PVC resins for the Indian agrochemical and pharmaceutical industries. Its products also include starting materials and intermediates, caustic soda, chlorochemicals, and industrial salt. Today, this company is the third-largest manufacturer of hydrogen peroxide and caustic soda in the country.

Chemplast Sanmar IPO Objectives

- Redeem the non-convertible debentures (NCDs) issued by it ahead of their maturity date
- Fulfil general corporate purposes

Chemplast Sanmar IPO - Details

According to the Draft Red Herring Prospectus (DRHP) filed with SEBI, this company’s public issue will comprise a new issue worth Rs. 1,300 crores. Moreover, it will include an offer for sale (OFS) of Rs. 2,550 crores by existing shareholders. Sanmar Holdings Ltd will be offloading shares worth 2463.44 crores, while Sanmar Engineering Services Ltd will be selling Rs. 86.56 crores worth of equity shares.

Opening Date

10 August 2021

Closing Date

12 August 2021

Price Band

₹530 - ₹541

per equity share

Issue Size

₹ 3,850 crores

Face Value

₹ 5

per equity share

Market Lot

27 shares

Opening Date

10 August 2021

Closing Date

12 August 2021

Price Band

₹530 - ₹541

per equity share

Issue Size

₹ 3,850 crores

Face Value

₹ 5

per equity share

Market Lot

27 shares

Listing at NSE, BSE

Chemplast Sanmar IPO Important Dates

IPO Open Date	10 August 2021
IPO Close Date	12 August 2021
Basis Of Allotment Date	18 August 2021
Initiation Of Refunds	20 August 2021
Credit Of Shares To Demat ACcount	23 August 2021
IPO Listing Date	24 August 2021

Chemplast Sanmar IPO Latest News and Subscription Status Today [Live]

Day 3 : 12 August 2021

Day 2 : 11 August 2021

Day 1 : 10 August 2021

At 04:20 p.m.

- This IPO has been subscribed 2.16x by 4:20 PM. on Day 3
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 2.70x
- (NII) Non-institutional buyers: 1.03x
- (RII) Retail Individual buyers: 2.25x

At 03:10 p.m.

- This IPO has been subscribed 1.74x by 3:10 PM. on Day 3
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 2.38x
- (NII) Non-institutional buyers: 0.21x
- (RII) Retail Individual buyers: 2.10x

At 02:30 p.m.

- This IPO has been subscribed 1.17x by 2:30 PM. on Day 3
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 1.37x
- (NII) Non-institutional buyers: 0.19x
- (RII) Retail Individual buyers: 2.05x

At 01:30 p.m.

- This IPO has been subscribed 0.52x by 1:30 PM. on Day 3
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.26x
- (NII) Non-institutional buyers: 0.16x
- (RII) Retail Individual buyers: 1.87x

At 12:30 p.m.

- This IPO has been subscribed 0.39x by 12:30 PM. on Day 3
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.06x
- (NII) Non-institutional buyers: 0.15x
- (RII) Retail Individual buyers: 1.71x

At 10:50 a.m.

- This IPO has been subscribed 0.30x by 10:50 AM. on Day 3
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.02x
- (NII) Non-institutional buyers: 0.06x
- (RII) Retail Individual buyers: 1.52x

At 05:10 p.m.

- This IPO has been subscribed 0.26x by 5:10 PM. on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.02x
- (NII) Non-institutional buyers: 0.06x
- (RII) Retail Individual buyers: 1.29x

At 04:10 p.m.

- This IPO has been subscribed 0.25x by 4:10 PM. on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.02x
- (NII) Non-institutional buyers: 0.05x
- (RII) Retail Individual buyers: 1.24x

At 03:10 p.m.

- This IPO has been subscribed 0.22x by 3:10 PM. on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.04x
- (RII) Retail Individual buyers: 1.13x

At 02:55 p.m.

- This IPO has been subscribed 0.21x by 2:05 PM on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.04x
- (RII) Retail Individual buyers: 1.10x

At 12:55 p.m.

- This IPO has been subscribed 0.20x by 12:55 PM on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.04x
- (RII) Retail Individual buyers: 1.06x

At 11:55 a.m.

- This IPO has been subscribed 0.20x by 11:55 AM on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.04x
- (RII) Retail Individual buyers: 1.02x

At 10:50 a.m.

- This IPO has been subscribed 0.18x by 10:50 AM on Day 2
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.03x
- (RII) Retail Individual buyers: 0.96x

At 05:10 p.m.

- This IPO has been subscribed 0.16x by 5:10 PM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.03x
- (RII) Retail Individual buyers: 0.83x

At 04:10 p.m.

- This IPO has been subscribed 0.14x by 4:10 PM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.03x
- (RII) Retail Individual buyers: 0.72x

At 02:55 p.m.

- This IPO has been subscribed 0.12x by 2:55 PM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.03x
- (RII) Retail Individual buyers: 0.64x

At 01:55 p.m.

- This IPO has been subscribed 0.11x by 1:55 PM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.02x
- (RII) Retail Individual buyers: 0.58x

At 12:55 p.m.

- This IPO has been subscribed 0.10x by 12:55 PM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.02x
- (RII) Retail Individual buyers: 0.51x

At 12:15 p.m.

- This IPO has been subscribed 0.09x by 12:15 PM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.02x
- (RII) Retail Individual buyers: 0.46x

At 10:55 a.m.

- This IPO has been subscribed 0.05x by 10:55 AM on Day 1
- It is a public issue of 3,99,52,829 equity shares.

Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x
- (NII) Non-institutional buyers: 0.00x
- (RII) Retail Individual buyers: 0.29x

Why Should You Invest in Chemplast Sanmar IPO?

Chemplast Sanmar operates under the umbrella of the renowned Sanmar group, which is one of the most popular corporate groups in southern India. The largest manufacturer of paste PVC primarily focuses on its speciality chemicals business, with significant margins.

Considering the increasing demand for paste PVC in India, the company has tremendous potential for growth. Its market position is hard to ignore for investors looking to invest in this sector. Furthermore, the company has a highly experienced management team to deal with unfavourable changes in the dynamic economic environment. Hence, individuals might consider applying for the Chemplast Sanmar IPO.

Financial highlights

Financial Year	Total Revenue (in Rs.)	Total Assets (in Rs.)	Profit After Tax (in Rs.)
2020-21	38,151.08 million	44,860.93 million	4,102.44 million
2019-20	12,655.10 million	41,075.40 million	461.25 million
2018- 19	12,667.74 million	38,015.63 million	1184.64 million

How to Apply for Chemplast Sanmar IPO?

You can apply for the Chemplast Sanmar IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Chemplast Sanmar IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Chemplast Sanmar IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel Broking to begin your investment journey.

Chemplast Sanmar – Noteworthy Highlights

Here are some essential highlights concerning Chemplast Sanmar that investors need to consider before applying for the company’s initial share sale:

- Chemplast Sanmar is the largest producer of speciality paste PVC resins in India when it comes to installed production capacity.

- The company operates on a vertically integrated business model as it primarily focuses on maintaining high standards in terms of manufacturing quality.

- Currently, Chemplast Sanmar has four manufacturing facilities. Out of them, three are located in Tamil Nadu, whereas the other one is located in Karaikal in Puducherry.

Chemplast Sanmar IPO - SWOT Analysis

Strengths

Brand Recognition: This company is a part of the Sanmar Group, which has established a firm foothold in the niche chemical products market. Moreover, Sanmar Group Limited has a large asset base of over $1.5 billion, along with international collaborations across different segments of the sector. It operates in various countries globally, including Mexico, the US and Egypt.
Emphasis on Specialty Chemicals Operations: Chemplast Sanmar primarily focuses on speciality chemicals operations associated with high margins. Furthermore, this business segment has moderate volume and represents tremendous growth potential.
Geographical Advantage: The company reaps the benefits of low expenses owing to the strategic selection of locations. Since it mainly operates in the southern and eastern Indian markets, it incurs low operating, freight, and labour costs.

Weaknesses

Increased Debt Burden: Before FY20, this company had favourable debt and gearing metrics owing to a low debt burden. However, in the past two years, the company’s debt level has increased significantly due to NCDs and high coupon payments. For FY2020, Chemplast Sanmar’s debt ratio stood at 1.42 times
Decline in Profit After Tax: The company has recorded a decline in profit after tax in the past financial year owing to the surge in interest payments and financing costs.

Opportunities

Growing Demand for Paste PVC: In India, there’s strong demand for paste PVC, and it is increasing year on year due to multiple end-use divisions, especially the artificial leather space. Chemplast Sanmar is the largest paste PVC producer in this country. Hence, it is ideally positioned to make the most of this opportunity.

Threats

Adverse Price Movements of Raw materials: The price of EDC, one of the important raw materials of its products, is highly volatile. If the price increases in the future, the company’s expenses will increase, thus impacting its margins.
Forex Fluctuations: Chemplast Sanmar imports some of the necessary raw materials utilised in the manufacturing process. Accordingly, this company’s profitability might be impacted due to forex fluctuations.
Operational Issues: Similar to most speciality chemical manufacturers, this company remains exposed to the risk of operational disruptions in production facilities. One of the reasons might be the non-availability of raw materials.

Strengths

Weaknesses

Opportunities

Threats

Strengths

Scaled Diagnostics Operation: Krsnaa Diagnostics operates in 14 states across the country with 465 pathology labs and over 2000 diagnostic centres, including collection and processing centres. Its operational base provides the company with strong financial leverage, helping it maintain a 30% operating margin as of 31 March 2020.
Healthy Financial Risk Profile: The management of Krsnaa Diagnostics strives to maintain a 1:1 equity-to-debt ratio, keeping its risk profile at a moderate level over the medium term.
Robust Infrastructure: It uses advanced technology and the best of the latest equipment in its diagnostics centres. Such modern and technologically advanced infrastructure offers it a competitive advantage in the market and helps retain and increase its customer base.

Weaknesses

Working capital needs: The PPP segment accounts for a significant portion of its receivables, stretching the credit period between 115 and 139 days. Therefore, its working capital requirements are significantly high.

Opportunities

Growth Prospects: The diverse geographical presence and strong financials offer Krsnaa Diagnostics the flexibility to expand its scale of operation and facility units.
Large Government Orders: Since the pandemic hit, GOI has decided to up its investment in the healthcare sector. This opens up opportunities for the company as it receives nearly 70% of its orders from government departments as of 31 March 2020.

Threats

Increase in Operating Costs: The tenders Krsnaa Diagnostics receive usually feature a tenure of 7 – 10 years. The price goes up by 2 – 3% after every 3 – 5 years. Therefore, if there’s a sudden increase in its operating costs, the company may struggle.
Generic Products: Diagnostics centres across the country offer similar tests and methods of prognosis. This increases the competition for the company from both regional and established market players.

Competitor Analysis: Market Peers

The table below provides an idea regarding the listed peers of Chemplast Sanmar:

Company Name	Chemplast Sanmar	Finolex Industries	PI Industries	Navin Fluorine International	SRF
Face Value (Rs.)	5 per share	10 per share	1 per share	2 per share	10 per share
EPS	2.04	26.81	33.08	82.60	177.29
TTM P/E Ratio	-	17.04	61.07	69.51	37.79
Total Revenue (in Rs.)	12,655.10 crores	30,158.90	34,154.00	10,948.82	72,584.60

Report from our researchers

What Is Angel One's Expert Research Report?

Our internal team of experts coalesces industry insight to prepare a thorough investigative report to give you a detailed understanding of the market. These reports are meticulously prepared to explain to you each and every step the market takes so that you always remain at the top of your investment game.

What is Chemplast Sanmar IPO?

Chemplast Sanmar’s initial public offering will comprise a fresh issue of shares worth Rs. 1500 crores along with an offer for sale of Rs. 3500 crores by existing shareholders.

When will Chemplast Sanmar IPO open for subscription?

Individuals can start subscribing to this IPO from 10 August 2021.

Who are the merchant bankers to this IPO?

The lead managers to this IPO include IndusInd Bank Limited, Yes Securities (India) Limited, IIFL Holdings Limited, BOB Capital Markets Limited, Axis Capital Limited, and Credit Suisse Securities (India) Private Limited, among others.

What is the price band for Chemplast Sanmar IPO?

Rs. 530 - 541

How will investors receive the allotted shares?

Post completion of the allotment process, the shares will be credited to the DEMAT account of eligible investors.

Who is the promoter of Chemplast Sanmar?

Sanmar Holdings Limited

Who is the registrar for Chemplast Sanmar IPO?

KFintech Private Limited

What is the listing date for this IPO?

The listing date for Chemplast Sanmar’s initial public offering is 24 August 2021.

About Chemplast Sanmar IPO

Chemplast Sanmar IPO Objectives

Chemplast Sanmar IPO - Details

Chemplast Sanmar IPO Important Dates

Chemplast Sanmar IPO Latest News and Subscription Status Today [Live]

At 04:20 p.m.

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Why Should You Invest in Chemplast Sanmar IPO?

Financial highlights

How to Apply for Chemplast Sanmar IPO?

Chemplast Sanmar – Noteworthy Highlights

Chemplast Sanmar IPO - SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Competitor Analysis: Market Peers

Report from our researchers

What Is Angel One's Expert Research Report?

Chemplast Sanmar IPO FAQs

What is Chemplast Sanmar IPO?

When will Chemplast Sanmar IPO open for subscription?

Who are the merchant bankers to this IPO?

What is the price band for Chemplast Sanmar IPO?

How will investors receive the allotted shares?

Who is the promoter of Chemplast Sanmar?

Who is the registrar for Chemplast Sanmar IPO?

What is the listing date for this IPO?

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