Chemplast Sanmar Limited IPO Details and Review

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

Chemplast IPO: Key Details

  • Grey Market Premium (GMP) today: TBD

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

Chemplast Sanmar Limited (CSL), incorporated in 1985, is a specialty chemicals manufacturer in India with focus on specialty paste PVC resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. CSL is one of India’s leading manufacturers of specialty paste PVC resin on the basis of installed production capacity, as of December 31, 2020.

In addition, CSL is also the third largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in the South India region and one of the oldest manufacturers in the chloromethanes market in India. Pursuant to the CCVL Acquisition, they acquired 100.0% equity interest in CCVL that is the second largest manufacturer of suspension PVC resin in India

Competitive Strengths

  • Strong market position in speciality chemicals;
  • Well-positioned to capture favorable industry dynamics;
  • Leadership position in an industry with high barriers to entry;
  • Vertically integrated operations;
  • Quality manufacturing facilities with a strong focus on sustainability;
  • Operational excellence;
  • Strong parentage and experienced management team

Company Strategy

  • Focus on developing and improving product portfolio
  • Expanding production capacities
  • Improving financial performance through focus on operational efficiencies

Proceeds from Chemplast IPO will be used to:

  • Early redemption of NCDs issued by the Company, in full (“NCD Redemption”); and
  • General corporate purposes

Chemplast IPO: Financials

201920202021
Revenue from Ops₹1254.3 Cr₹1257.7 Cr₹3798.7 Cr
Profit before Excep*₹193.40 Cr₹71.70 Cr₹562.86 Cr
Profit after Tax118.46 Cr₹46.13 Cr₹410.24 Cr
EPS (Basic)4.532.0430.60
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS16.7431.6632.12
* Weighted Average for last 3 years

Chemplast IPO: Comparison with listed industry peers

CompanyP/E (Cap)
Chemplast Sanmar32.12
Highest (Navin Flourine)73.8
Lowest (Finolex Ind.)15.0
Sector Avg43.1

Chemplast IPO Dashboard

Issue Details

TypeValue
Issue Size₹3,850 Cr
Fresh Issue₹1,300 Cr
Offer for Sale₹2,550 Cr
Face Value₹5/- per Equity Share
IPO Price₹530 – ₹541
Lot Size27 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open10/08/2021
Bid Close 12/08/2021
Allotment Finalization18/08/2021
Initiation of Refunds20/08/2021
Credit of Shares23/08/2021
Listing Date24/08/2021

Lot Size and Price

LotsSharesAmount
127₹14,607
13351₹1,89,891

Promoter Holding

HoldingPercentage
Pre-Issue100.0%
Post-Issue54.99%

Chemplast IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%[●] shares
NII15%[●] shares
RII (Retail)10%[●] shares
Total100%[●] shares

Chemplast IPO: Risks

  • They have incurred significant indebtedness and lenders have imposed certain restrictive conditions. This may limit their ability to pursue business and flexibility in planning for, or reacting to, changes.
  • They do not own premises for registered office. Further, they operate manufacturing facility on parcels that are held on a leasehold as well as a free hold basis. In addition, lease for the Vedaranyam Salt Field has expired
  • Statutory Auditor has included certain emphasis of matters, in its examination report on Restated Consolidated Summary Statements
  • Their intellectual property rights may not be adequately protected against third party infringement.
  • 100% of the share capital of CCVL, which is held by the Company, is pledged in favour of Housing Development Finance Corporation Limited.

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

Chemplast IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032.

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

ICICI Securities Limited
Axis Capital Limited
Credit Suisse Securities Private Limited
IIFL Securities Limited
Ambit Private Limited
BOB Capital Markets Limited
HDFC Bank Limited
IndusInd Bank Limited
YES Securities (India) Limited

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