Anupam Rasayan IPO: Anupam Rasayan’s IPO worth Rs 760 crore has been opened for subscription on 12 March and can be bid for by 16 March. The price band of the IPO has been kept at Rs 553-555 per share and before the IPO it has raised Rs 225 crore from anchor investors. The promoters hold 75.8 per cent before the issue, which will come down to 65.4 per cent after the IPO. If you too are planning to invest in it, then it is important to know a few things first.
What do experts say?
Anupam Chemicals has strong and long standing business relationships with several multinational corporations including Syngenta Asia Pacific, Sumitomo Chemical Company and UPL. Apart from this, the company has grown revenue at a CAGR (Compound Annual Growth Rate) of 24.3% between FY 2018 and FY 2020. Despite the Corona epidemic in 2020 last year, the company’s revenue grew at a rate of 45 per cent in the first nine months of the current financial year 2020-21. Due to strong revenue growth and a long business relationship with several multi-national corporations, brokerage firm Angel Broking has given a subscribed rating to Anupam Chemicals’ IPO.
Nazara Technologies: IPO to open on March 17, Rakesh Jhunjhunwala’s 11% stake in the company; Premium strong in gray market
Better financial position of the company
According to Anupan Chem’s profit and loss statement, its financial position is better. Total operating income of the company has increased. The operating income of the company was Rs 341 crore in FY 2018, which increased to Rs 201 crore in FY 2019. The total operating income of the company in the financial year was Rs 529 crore, which was the total operating income of Rs 539 crore in the first nine months of the current financial year 2021.
Apart from this, in the case of EBITDA of the company, it was 135 crores in the last financial year whereas in the first 9 months of the current financial year it is Rs 131 crores. The company’s EBIT (earning before interest and tax, depreciation, amortization) has increased at a CAGR of 22.19 per cent between FY 2018 and FY 2020.
27 shares lot size
Anupam Rasay has kept a lot size of 27 shares for the IPO, that means at least 27 shares have to be bid. Based on the upper price band of Rs 555, investors will have to invest at least Rs 14,985. 50 per cent of the net issue is reserved for qualified institution buyers (QIBs) and 15 per cent for non-institutional investors. 35 per cent issue is reserved for retail investors.
Anupam has appointed Axis Capital, Ambit Private, IIFL Securities and JM Financial as the book running lead managers for the issue for its IPO. KFintech Private Limited is the registrar for the IPO. In the document prepared for the IPO of Anupam Chemicals, it has been said that the amount received from the IPO will be used mainly in the payment of debt. Apart from this, this fund will be used for corporate purposes.
Mutual Fund: This fund has given 50% returns to investors in a year, what should be done next?
What does the company do?
Anupam Rasayan started functioning in 1984. Earlier she used to make traditional products. Now she makes specialty chemicals. Anupam has 6 multi-purpose manufacturing plants in Gujarat. Their total capacity is about 23,396 MT. The company mainly produces products for the agrochemical, personal care and pharmaceutical sectors. These segments accounted for over 95 per cent of the revenue in FY 2019-20. Its customers include Syngenta Asia Pacific, Sumitomo Chemical Company and UPL Limited.