The initial public offer of Anupam Rasayan India opened for subscription today and the issue closes on Tuesday, Mar.16, 2021. The price band is fixed at Rs. 553 - 555 per share for its Rs 7,600 million initial share sale.The lot size in Anupam Rasayan IPO is 27 and KFin Technologies is the registrar of the IPO.
Half of the issue is reserved for qualified institutional buyers, 35% for retail investors, 15% for non-institutional bidders.
Axis Capital, Ambit Private, IIFL Securities and JM Financial are merchant bankers for the issue.
Commenting on the IPO, Prashanth Tapse, AVP-Head Research, Mehta Equities said, "We believe Anupam Rasayan is well-positioned to tap the shifting global demand to India by having expertise customized solutions in life science specialty chemicals.
"He is optimistic about the sector and expect robust multiyear export opportunities ex china as well as local demand in the current "Vocal to Local" environment. "While rising "Make in India" campaign would also add impetus to the emergence of India as a manufacturing hub for the specialty chemicals industry. Hence Anupam Rasayan stands well to get the favourable and supportive Industry growth to drive sustainable business as well as profitable growth in the medium to long-term as its well-diversified presence in agrochemicals, personal care, and pharmaceuticals; and specialty chemicals, comprising specialty pigment and dyes, and polymer additives."
"Key risk also to be considered before investing, funds raised via IPO will be used for repayment/prepayment of certain indebtedness availed by the company (including accrued interest) and discounted preferential share placement to KPI LLC (a promoter Company) between Sept-20 to Nov-20 in the range of Rs 197-249/- price per equity share vs. IPO ask price of Rs 555 per equity share in March 2021," Tapse added.
"On valuations parse at upper price band (Rs 555/-), the issue is asking for a market cap of Rs 55,440 million with higher PE 69x vs. industry average P/E at ~42x which seems IPO offer is aggressively priced compared to its peers while higher export potential and global business shift which can create multiyear export opportunity justifies the premium for listing gain. Considering all the above factors we recommend investors to "Subscribe For Listing Gain Only"," stated Tapse.
Anupam Rasayan India (ARL) is one of the leading companies engaged in custom synthesis & manufacturing of specialty chemicals in India. It offers multistep synthesis and undertakes complex chemical reactions technologies, for a diverse base of Indian and global customers. It mainly caters through two distinct business verticals Life science related speciality chemicals and other speciality chemicals.
ARL's strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific, Sumitomo Chemical and UPL has helped them expand their product offerings and geographic reach across Europe, Japan, United States and India. It operates 6 manufacturing facilities in Gujarat, India, with 4 facilities located at Sachin, Surat and 2 located at Jhagadia, Bharuch with an aggregate installed capacity of 23,438 MT, as of Dec. 31, 2020.
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