Anupam Rasayan IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Anupam Rasayan IPO

Anupam Rasayan IPO: Key Details

  • Grey Market Premium (GMP) today: ₹250 – ₹265

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Anupam Rasayan Limited, incorporated in 1984, is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India. It started as a partnership firm as a manufacturer of conventional products and have, 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. Its key focus in custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.

They have two key distinct business verticals

  • Life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and
  • Other specialty chemicals, comprising specialty pigment and dyes, and polymer additives

In Fiscal 2020 and in the nine months ended December 31, 2020, revenues from the life science related specialty chemicals vertical accounted for 95.37% and 93.75%, respectively, of its revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 6.25%, respectively, of its revenue from operations, in such periods.

Competitive Strengths

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

Company Strategy

  • Continue to focus on custom synthesis and manufacturing by developing innovative processes and value engineering
  • Expand business by capitalizing on industry opportunities and organic and inorganic growth
  • Diversify its product portfolio and expand the chemistry expertise
  • Continue to focus on cost efficiency and improving productivity

Proceeds from fresh issue of Anupam Rasayan IPO will be used to:

  • Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest); and
  • General corporate purposes

Anupam Rasayan IPO: Financials

201820192020 Mar2020 Dec
Revenue from Ops₹341.43 Cr₹501.50 Cr₹520.88 Cr₹539.22 Cr
Profit before Tax₹49.77 Cr₹65.71 Cr₹71.37 Cr₹66.76 Cr
Profit after Tax40.34 Cr₹50.21 Cr₹52.98 Cr₹48.09 Cr
EPS (Basic)6.596.606.946.03
As of March 2020EPSP/E (Floor)P/E (Cap)
Based on basic EPS6.9479.9779.68

Comparison with listed industry peers

CompanyEPSP/E (Cap)
Anupam Rasayan6.9479.68
PI Industries33.0869.12
Navin Fluorine92.6029.06
Astec Lifesciences24.2943.21
SRF177.2931.92
Sector P/E51.72

Anupam Rasayan IPO Dashboard

Issue Details

TypeValue
Issue Size₹760 Cr
Fresh Issue₹760 Cr
Face Value₹10/- per Equity Share
IPO Price₹553 – ₹555
Lot Size27 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open12/03/2021
Bid Close16/03/2021
Allotment Finalization19/03/2021
Initiation of Refunds22/03/2021
Credit of Shares23/03/2021
Listing Date24/03/2021

Lot Size and Price

LotsSharesAmount
127₹14,985
13351₹1,94,805

Promoter Holding

HoldingPercentage
Pre-Issue75.8%
Post-Issue[●] %
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Anupam Rasayan IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%27,09,259 shares
NII15%20,31,765 shares
RII (Retail)35%47,40,785 shares
Employees2,20,000 shares
Total100%97,01,809 shares

Anupam Rasayan IPO: Risks

  • The company has incurred significant indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect business
  • A portion of the Net Proceeds may be utilized for repayment or pre-payment of loans taken from Axis Bank, which is an affiliate of one of the Book Running Lead Managers
  • The company may become involved in claims concerning intellectual property rights, and could suffer significant litigation or related expenses
  • The company has had negative cash flows from operating activities in the past and a consequent net decrease in cash and cash equivalents in some of the recent years.
  • The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

For complete internal and external risk factors, you can refer the RHP and DRHP of the company.

Anupam Rasayan IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)
Selenium Building, Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.

Phone:040-332101000
Email: [email protected]

Lead Managers of the Issue

Axis Capital Limited
Ambit Private Limited
IIFL Securities Limited
JM Financial Limited

Phone: +91-22-4325 2183 / +91-22-6630 3030
Email: [email protected] / [email protected]

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