Anupam Rasayan IPO is launched for subscription on 12, March 2021, and will be available for subscription till Tuesday, March 16, 2021. The company is looking to raise Rs.760 crore through public issue in an Offer for Sale of 97,01,809 Equity Shares, Ahead of the IPO, the Anupam Rasayan has already raised Rs 225 crore from anchor investors.
According to the latest BSE circular, it has allocated 40.48 lakh shares to 15 anchor investors at Rs 555 per share. Among the 18 anchor investors are Aditya Birla Sunlife Mutual Fund (MF), Nomura Funds Ireland Public Ltd Company, Fidelity International, Sundaram MF, SBI Life Insurance Co, IIFL Special Opportunities Fund, Malabar Select Fund and Max Life Insurance.
The equity shares of Anupam Rasayan are proposed to be listed on both BSE and NSE.
The Anupam Rasayan IPO issue will be sold in the price band of Rs 553-555 per share and the minimum lot quantity is 27 shares and in multiples thereof translating to a minimum investment of Rs 14, 985.
Earlier this week the Grey market premium price (GMP) for Anupam Rasayan IPO’s were seen up by more than 58% and were trading around Rs.877, This means people are expecting it to open on listing day to be at least at Rs.850 or more.
However, the latest GMP , Grey market premium price for Anupam Rasayan as of today has seen a sharp fall of more than 10%, mainly due to the highly volatile market condition and is currently trading at Rs.780, at a grey market premium of 41.50 %.
Incase, the market falls on Monday you may see more fall in GMP of Anupam Rasayan IPO.
Having said that, I would like to add here that many people underestimated Stovekraft IPO before it’s launch, however the share price made a high of Rs.545 above the pre-open IPO price band of Rs.384.
Likewise for HFFC (Home first finance) IPO, the GMP before launch was at about Rs.650 however the stock got listed at Rs.540 on the other hand for IRFC IPO many people recommended a BUY and GMP were also seen at quite high range but unfortunately it open at a discount price and is currently trading at Rs.25.40.
GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot. Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
Having said that, one must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Talking about the Anupam Rasayan IPO latest subscription status it was subscribed 1.22 times so far on day 1 of bidding. The issue received bids for 1.25 crore shares as against an offer size of 97.01 lakh shares, according to NSE.
The Anupam Rasayan IPO was subscribed 85% so far on day 1 of bidding. The issue received bids for 82.34 lakh shares as against an offer size of 97.01 lakh shares, according to NSE.
Checkout the image below to know more on Anupam Rasayan IPO Subscription Status:
Now, coming back to the Anupam Rasayan IPO let us talk about in brief about the company and its financials and other details step by step.
About Anupam Rasayan India Limited(ARIL):
Anupam Rasayan India Limited is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India.
The company commenced business as a partnership firm in 1984 as a manufacturer of conventional products and has, 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.
The company’s key focus is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization. The company has two distinct business verticals:
- Life-science-related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals
- Other specialty chemicals, comprising specialty pigment and dyes and polymer additives
The company has developed strong and long-term relationships with various multinational corporations, including Syngenta Asia Pacific, Sumitomo Chemical Company and UPL, which have helped expand their product offerings and geographic reach across Europe, Japan, United States and India.
In the nine months ended Dec 31, 2020, the company manufactured products for over 53 domestic and international customers, including 17 multinational companies.
The company is also one of the leading companies in manufacturing products using continuous and flow chemistry technology on a commercial scale in India.
The company has six manufacturing units located in the state of Gujarat out of which four are situated at Sachin and two are located at Jhagadia with an aggregated installed capacity of 23,438 MT as of December 31, 2020.
They also have a dedicated in-house R&D facility and a pilot plant located at Sachin Unit6, which is equipped with laboratories engaged in process development, process innovation, new chemical screening and engineering, which assists in pursuing efficiencies from the initial conceptualization up to commercialization of a product.
Financials Of Anupam Rasayan India Limited:
The company’s revenue from operations increased by 45% to ₹539.22 crore in the nine months ended December 31, 2020, from ₹371.80 crore in the year-ago period.
The total income of the company showed growth at a CAGR of 24.29%. Moreover, between 2018 and 2020, the profit after tax grew at a CAGR of 14.59%. Also, the company’s total assets grew at a CAGR of 28.92%.
Company EBITDA for Fiscals 2018, 2019, 2020 and the six months ended September 30, 2019 and 2020 was ₹ 745.07 million, ₹ 921.74 million, ₹ 1,348.96 million, ₹ 575.40 million, ₹ 774.00 million, respectively while EBITDA margin was 21.82%, 18.38%, 25.51%, 24.55% and 21.79%, respectively, for similar periods.
The company has a robust track record of performance. It is expected that the company will be able to gain more market share and simultaneously its margins will also improve. The valuation of the company does looks great along with huge capex in the last three fiscals.
Anupam Rasayan has a strong financial position and has been generating positive cash flow. You can read the complete financials of Anupam Rasayan India Limited Here.
Anupam Rasayan Peers Comparison:
Upon listing, Anupam Rasayan India will be joining the listed peers such as PI Industries, Navin Fluorine International Ltd, Astec Lifesciences Ltd and SRF Ltd.
It 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. At the upper price band of Rs 555, the issue is priced at a 69x P/E and 5.8x P/BV. This is way higher than the industry average hence, the IPO is overvalued.
Anupam Rasayan IPO Details:
Objects of the Offer:
Anupam Rasayan IPO is an entirely fresh issuance of equity shares and proceeds of the issue would be mainly used to repay debt and general corporate purpose.
• QIB – 50% of the offer – ₹ 374.50 crores
• NIB – 15% of the offer – ₹ 112.35 crores
• RET – 35% of the offer – ₹ 262.15 crores
Promoters of Anupam Rasayan India Limited IPO:
Mr. Anand S Desai; Dr. Kiran C Patel; Ms. Mona A Desai; KPI LLC; and RIRCPL
Frequently Asked Question (FAQ):
1.What Is The Symbol For Anupam Rasayan India Limited(ARIL)?
Ans: The Symbol for Anupam Rasayan India Limited is ANURAS
2.When Anupam Rasayan IPO Coming?
Ans: The Issue Period for Anupam Rasayan IPO is 12-Mar-2021 to 16-Mar-2021.
3. Post Modification Period For Anupam Rasayan IPO?
Ans: The Post issue Modification Period for IPO is 17-Mar-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Anupam Rasayan IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 17-Mar-2021 (upto 12:00 PM).
5. What Is The Issue Type For Anupam Rasayan IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Anupam Rasayan IPO?
Ans: The Price (Band) Range for Anupam Rasayan IPO is Rs.553 to Rs.555 per equity share.
7. What Is The Lot Size For Anupam Rasayan IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Anupam Rasayan IPO is of 27 Equity Shares and in multiples thereof 27 Equity Shares.
8. Who Are The Book Running Lead Managers For Anupam Rasayan IPO?
Ans: The Book Running Lead Managers are, Axis Capital Limited, Ambit Private Limited, IIFL Securities Limited, JM Financial Limited
9. What Is The Face Value For Anupam Rasayan IPO?
Ans: The Face Value is of Rs. 10 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Anupam Rasayan IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Maximum Subscription Amount for Eligible Employee Rs. 5,00,000
The Maximum Bid Quantity for QIB Investors is 94,81,806 equity shares in multiple of 27 Equity Shares
The Maximum Bid Quantity for NIB Investors is 67,72,545 equity shares in multiple of 27 Equity Shares
The Name of the Registrar is Kfin Technologies Private Limited
The Contact person name number and Email id is Mr. M Murali Krishna, 040 3321 100, firstname.lastname@example.org
Where To Check Anupam Rasayan IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
Over the years, Anupam Rsayan India Limited has built strong relationships with various companies including Syngenta Asia Pacific, Sumitomo Chemical Company and UPL, helping it to grow its exports revenue to 68 % for FY20, with its major export market being Europe (36 %).
Further, the company has also managed to increase its commercialized products from just 15 in 2015 to 41 in December 2020. The chemical sector in India has benefitted in recent years from the China effect.
First, the environmental crackdown in China on pollution-causing chemical plants in 2015 led to sudden supply-side problems, thereby benefiting the Indian players. And now, the pandemic is leading global companies to reduce their dependence on China.
However, there is a long way to go for the $22 billion Indian specialty industry, which represents just 1-2 % of the world’s exportable specialty chemicals as of today. To reap the benefits of this trend, Anupam Rasayan has invested more than Rs 680 crore in the last three years (till FY20) and has more than doubled its capacity to 23,438 MTs.
Let us talk about the strength and weakness of Anupam Rasayan Limited in brief.
Some of the qualitative factors and strengths of Anupam Rasayan Limited:
- Strong and long-term relationships with diversified customers across geographies with significant entry barriers.
- Core focus on process innovation through consistent R&D, 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; and Experienced promoters and strong management team.
Some of the Risk Factor for Anupam Rasayan Limited:
- The company carries 6-7 months inventory against the industry average of 1.5-2.5 months, highlighting poor working capital management.
- The company will list at a price of Rs 555 and a P/E of around 95 based on twelve months earnings till December 2020 and post-IPO outstanding shares. The valuation of the company is at a steep increase as compared to the recent equity infusion by the corporate promoter, which was at a price of around Rs 200-250 in 2020.
- The company doesn’t have any patented products. Moreover, its R&D expense is pretty low at 0.4 per cent of FY20 revenue as compared to its peers (3.5 per cent average).
- Almost 68 per cent of the company’s revenue comes from exports, exposing the company to foreign exchange risk.
Therefore, it is always advisable to go through Anupam IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable. Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.