Anupam Rasayan India Limited IPO: Date, Price, GMP, Review, Details

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Anupam Rasayan India Limited IPO: Anupam Rasayan India Limited is coming out with a fresh public issue to raise ₹ 760 crores from the market.

The initial public offer (IPO) of Gujarat-based company Anupam Rasayan India Ltd, which makes Specialty Chemical, has opened today i.e. March 12. It can be bid till next Tuesday i.e. March 16. The price range of its one share has been fixed at 553 to 555 rupees per share. The company is set to raise Rs 760 crore through this public issue.

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Anupam Rasayan India Limited IPO Details

Here are some more details regarding the Anupam Rasayan India Limited IPO issue:

Issue opens: Mar 12 (Friday)
Issue closes: Mar 16 (Tuesday)
Issue size: ₹ 760 crores
Face Value: ₹ 10 per share
Price band: ₹ 553 – 555 per equity share
Bid lot: 27 shares and in multiples thereof
Employee discount: ₹ 55 per equity share
Employee reservation: Up to 2,20,000 equity shares (₹ 11 crores at upper price band)
Total shares for sale: 13,715,000 – 13,765,000 Equity Shares
Registrar: Kfin Technologies Private Limited
Listing: NSE and BSE

Finalization of basis of allotment: 19 MAR 2021
Refunds/Unblocking ASBA fund : 22 MAR 2021
Credit of equity shares to DP account: 23 MAR 2021
Trading commences: 24 MAR 2021

Anupam Rasayan India Limited IPO: Category Allocation

QIB: 50% of the offer – ₹ 374.50 crores
NIB: 15% of the offer – ₹ 112.35 crores
Retail: 35% of the offer – ₹ 262.15 crores

The objective of the offer

Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest)
General corporate purpose

Additionally, Anupam Rasayan India Ltd expects to achieve the benefits of listing of their Equity Shares on the Stock Exchanges and enhancement of their Company’s brand name and creation of a public market for their Equity Shares in India.

About the company

Anupam Rasayan India Limited IPO
Anupam Rasayan India Limited IPO

They are one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India (Source: F&S Report).

The company commenced business as a partnership firm in 1984 as a manufacturer of conventional products and has, over the years, evolved into custom synthesis and manufacturing of life-science-related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers.

Their key focus in their custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization. They have two distinct business verticals (i) life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and (ii) other specialty chemicals, comprising specialty pigment and dyes, and polymer additives.

They have developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited that has helped us expand their product offerings and geographic reach across Europe, Japan, United States and India. In particular, they have been manufacturing products for certain customers for over 10 years. In the nine months ended December 31, 2020, they manufactured products for over 53 domestic and international customers, including 17 multinational companies. The Government of India has also recognized their Company as a three star export house.

They are also one of the leading companies in manufacturing products using continuous and flow chemistry technology on a commercial scale in India (Source: F&S Report).

According to the F&S Report, India’s specialty chemicals industry is expected to grow at a CAGR of approximately 10% to 11% over the next five years, due to rising demand from end-user industries, along with tight global supply on account of stringent environmental norms in China. Further, India accounts for approximately 1% to 2% of the global exportable specialty chemicals, indicating a large scope of improvement and widespread opportunity.

In addition, custom synthesis manufacturing is on the rise in India and contract research and manufacturing services market is expected to grow at a rate of 12% in the next five years, owing to strong growth from end-use demand. (Source: F&S Report)

Strengths

  • Strong and long-term relationships with diversified customers across geographies with significant entry barriers.
  • Core focus on process innovation through consistent R&D, value engineering and complex chemistries.
  • Diversified and customized product portfolio with a strong supply chain.
  • Automated manufacturing facilities with a strong focus on the environment, sustainability, health and safety measures
  • Consistent track record of financial performance.
  • Experienced promoters and strong management team.

Risks

  • Dependent on successful relationships with MNC customers
  • They depend on their manufacturing facilities which are subject to manufacturing risks
  • Significant portion of revenue comes from few customers
  • Their operations are dependent on R&D. Failure to innovate will impact business
  • No long term agreements with suppliers and volatility in raw material prices pose operations risk
  • Significant portion of revenues come from a limited number of markets

Important Financials Data

EBITDA for Fiscals 2018, 2019, 2020 and the nine months ended December 31, 2019 and 2020 was ₹ 74.51 Cr, ₹ 92.17 Cr, ₹ 134.9 Cr, ₹ 102.02 Cr, ₹ 130.76 Cr, respectively while EBITDA margin was 21.82%, 18.38%, 25.51%, 27.44% and
24.25%, respectively, for similar periods.

Total revenue have increased at a CAGR of 24.29% from ₹ 349.18 Cr in Fiscal 2018 to ₹ 539.39 Cr in Fiscal 2020, and was ₹ 374.49 Cr and ₹ 563.16 Cr in the nine months ended December 31, 2019 and 2020, respectively

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