Anupam Rasayan IPO: The initial public offering (IPO) of Anupam Rasayan will open for subscription on Friday, March 12, 2021, at a price band of Rs 553-555 per share. The offer will be available for subscription till Tuesday, March 16, 2021.
The company is in speciality chemicals sector and ahead of its Rs 760 crore IPO, Anupam Rasayan raised nearly Rs 225 crore from 15 anchor investors, data from the stock exchanges showed.
The IPO is an entirely fresh issuance of equity shares and proceeds of the issue would be mainly used to pay the debt.
Investors who wish to subscribe to Anupam Rasayan IPO can bid in a lot of 27 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,985 to get a single lot of Anupam Rasayan. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Wednesday, March 17, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
The company commenced operations in 1984 with conventional products and now it makes speciality chemicals that involve multi-step synthesis and complex chemistries. It has six multi-purpose manufacturing facilities based in Gujarat with a combined aggregate installed capacity of around 23,396 metric tonne, of which 6,726 metric tonne was added in March 2020.
Axis Capital, Ambit Private, IIFL Securities and JM Financial are the book running lead managers to the IPO while KFin Technologies is the registrar of the issue.
The research teams at Anand Rathi Share and Stock Brokers and Ventura Securities in their respective notes have recommended “Subscribe” to the offer while those at Reliance Securities haven’t given any rating to the IPO.
Anand Rathi Research in its IPO note said, “In the recent past, Company has a robust track record of performance. It is expected that Company will be able to gain more market share and simultaneously its margins will also improve. Company has priced its issue at 95.2x PE at the upper band on a trailing basis which is aggressively priced as compared to its peers. However, considering the rising fancy for life care and specialty chemicals segment linked with future performance trends, the company is expected to do well post listing going forward. Moreover, Company has a strong financial position and has been generating positive cash flow. We are positive on the long-term prospects of the Company. Hence, we recommend a “Subscribe” rating to this IPO.”
Reliance Securities in its IPO note stated that, “The IPO is valued at 80x and 69x EPS for FY20 and annualized FY21, respectively, which look to be aggressively priced. ARIL indicated that as capex programme is completed, growth outlook is quite strong. However, considering capacity utilization of ~75% as on 9MFY21 and likely interest cost savings from debt repayment from IPO proceeds, we believe its earnings can potentially register ~35-40% CAGR over FY20-23E. Despite factoring this, it trades at over 40x of FY23 earnings, which is expensive compared to its quality peers like SRF and PI Industries. Further, a less than 1x asset turnover ratio over the years and low OCF yields raise apprehensions.”
(with PTI inputs)