Anupam Rasayan Ltd. will launch its Rs 760-crore initial public offering on Friday as the specialty chemicals maker looks to pare debt.
The company will sell 1.37 crore shares in a fresh issue, amounting to about 16% of the paid-up equity, through the IPO—the eleventh so far in calendar year 2021—at Rs 553-555 apiece, according to its red herring prospectus. At the upper price band, Anupam Rasayan will be valued at Rs 5,545 crore. Promoter shareholding after the maiden issue will fall to 65.40% from 75.80%.
Issue open on: March 12, 2021.
Issue closes on: March 16.
Face value: Rs 10 apiece.
Shares on offer: 1.37 crore.
Minimum bid size: 27 shares.
Listing on: BSE and NSE.
Book running lead managers: Axis Capital, Ambit, IIFL Securities, JM Financial.
This comes at a time participation of retail investors in the equity markets in India and around the world has increased following the pandemic-induced lockdowns, extending the IPO rush into 2021 as well.
Proceeds from the issue will be primarily used to pay off Rs 563.70 crore in debt, including accrued interest. As on Jan. 31, 2021, Anupam Rasayan had total debt worth Rs 843.5 crore.
Surat-based Anupam Rasayan commenced business as a partnership in 1984 to manufacture and sell chemicals. It was converted into a public limited company in September 2003. Over the years, it expanded to undertake custom synthesis and manufacturing of life science-related and other specialty chemicals.
The company derives 68% of its revenue from exports—the key regions being Europe (35.97%), Singapore (17.23%), Japan (5.83%) and the U.S. (3.69%). India accounts for 31.95% of its revenue.
Its custom synthesis and manufacturing agreements are long-term pacts of two and five years, with certain contracts automatically renewed for a year at a time.
Anupam Rasayan has developed long-term relationships with various multinational corporations, including Syngenta Asia Pacific Pte., Sumitomo Chemical Co. and UPL Ltd. The company has been manufacturing products for certain customers for more than 10 years.
It has six multi-purpose manufacturing facilities in Gujarat, with four located in industrial estate at Sachin, close to Adani’s Hazira Port. Two units are located in the industrial estate at Jhagadia. The facilities have a combined aggregate installed capacity of 23,396 metric tonnes, of which 6,726 metric tonnes was added in March last year.