There are some interesting IPOs scheduled to be launched in 2021. One such IPO is the Anupam Rasayan India Limited IPO that is being launched on March 12, 2021. Here is all you need to know about the issue.
|IPO Date||March 12, 2021 to March 16, 2021|
|Issue Type||Book Built Issue IPO|
|Issue Size||Equity Shares of Rs.10 totaling up to Rs.760 Crore|
|Face Value||Rs.10 per equity share|
|IPO Price||Rs.553 to Rs.555 per equity share|
|Market Lot||27 shares|
|Min Order Quantity||27 shares|
|Listing At||BSE, NSE|
|Bid/Offer Launch date||March 12, 2021|
|Bid/Offer Last date||March 16, 2021|
|Basis of Allotment finalization date||March 19, 2021|
|Initiation of Refunds||March 22, 2021|
|Credit of Shares to Demat Acct||March 23, 2021|
|IPO Shares Listing Date||March 24, 2021|
Anupam Rasayan India Limited is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India. The company primarily focuses on developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization. Anupam Rasayan has two distinct business verticals:
The company has stringent quality and technical specifications and customizations. It undertakes a large number of complex chemical reactions and automated manufacturing capabilities, develops in-house innovative processes along with strong technical competencies and R&D capabilities, and has a transparent cost model, enabling it to act as a complete one-stop solution for process innovation and development of specialty chemicals for multinational companies in a cost-efficient manner. Anupam Rasayan 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 a dedicated in-house R&D facility and a pilot plant, which is equipped with laboratories engaged in process development, process innovation, new chemical screening, and engineering, which assists it in pursuing efficiencies from the initial conceptualization up to commercialization of a product. It has six production facilities across Gujarat.
Anupam Rasayan has a target-driven approach to the environment, sustainability, health, and safety measures. It undertakes hazard and operability studies before commencing commercial production of a new product and looks to mitigate these hazards through process improvement, engineering controls, developing safe operating procedures, and training of its employees. Further, its integrated model allows it to develop insights across the entire value chain right from process innovation, process development, and manufacturing to performing custom synthesis and manufacturing services for its customers.
The company was initially formed as a partnership firm in 1984 to manufacture and sell chemicals. It was converted into a company in 2003 and registered as a public limited company. In 2010, Anupam Rasayan started supplying specialty chemicals to Singapore-based Syngenta Asia Pacific Pte Ltd. The company received its first tranche of investments from its key investor – KPI LLC in 2016. Spreading its global presence, Anupam Rasayan started supplying speciality chemicals to Japan-based Sumitomo Chemical Company Limited. In 2018, KPI LLC invested USD35 million as an external commercial borrowing in the company.
Anupam Rasayan India Limited established a subsidiary company in 2013 called Jainam Intermediates Private Limited (JIPL). JIPL is in the business of manufacturing, producing, refining, processing, formulating, buying, selling, export, import, or dealing in all types of heavy and light chemicals, chemical elements, and compounds.
Here is a quick look at the financial performance of Anupam Rasayan India Limited over the last three years:
|Dec 2020||Mar 2020||Mar 2019||Mar 2018|
|Profit After Tax||48.09||52.97||50.21||40.34|
All amounts in INR Crore
A quick glance at the financial performance of Anupam Rasayan over the last three years highlights significant growth. During this period, the total income of the company showed growth at a CAGR of 24.29%. Further, 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%.
After the opening of the lockdown across major global economies, the specialty chemical industry was amongst the first to recover, given the increasing need for its inputs towards essential supplies, such as pharmaceuticals, personal health and hygiene, fertilizers, and other agricultural needs. Agrochemicals and pharma-chemicals were the first ones to revive owing to their application in essential products, such as food and medicines, respectively. The major agrochemical companies have shown approximately 38% improvement in stock prices since the initial lockdown started on March 24, 2020, compared to approximately 23 % by Sensex in general. Further, the Government of India’s initiatives, western countries focusing on ‘China plus one’ strategy, and companies moving away from China present opportunities for India to recover. Additionally, agrochemical manufacturing represents a highly profitable and lucrative opportunity. To meet the rising diversified food demand, the commercial cultivation of high-value crops is increasing rapidly in recent years. Farmers are demanding superior quality agrochemicals which are balanced and nutritive, which is one of the key drivers.
The speciality chemicals market in India was valued at USD200 billion in 2019 with basic chemicals, also known as commodity chemicals or bulk chemicals, accounting for a majority share of 56%. The specialty chemicals industry is driven by both domestic consumption and exports. India’s specialty chemical companies are gaining favor with international multinational companies on account of the geopolitical shift after the outbreak of COVID-19 as the world looks to reduce its dependence on China. Currently, China accounts for approximately 17% to 18% of the world’s exportable specialty chemicals, whereas India accounts for only 1% to 2%, indicating that India has a large scope of improvement and widespread opportunity. It is anticipated that specialty chemicals will be the next great export pillar for India. Overall, the specialty chemicals industry is likely to continue to perform well in the near to medium term and is expected to capitalize on the ‘Make in India’ benefits to assume a leadership position in the market.
Here is a quick look at the performance of Anupam Rasayan in comparison to its peers on some key aspects for FY 2020:
|Profit After Tax||Debt to Equity Ratio||Return on Net Worth (RoNW)|
|Anupam Rasayan India Limited||52.97||1.38%||9.62%|
|PI Industries Limited||442.3||0.20%||18.6%|
|Navin Fluorine International Limited||399.82||–||33%|
|Astec Lifesciences Limited||47.47||0.40%||5.71%|
All amounts in INR Crore
As you can see, compared to its listed peers, Anupam Rasayan has a slightly higher Debt to Equity Ratio and relatively lower RoNW. However, it has been recording consistent growth in recent years.
Let’s look at the valuation factors of Anupam Rasayan in comparison with its peers:
|Earnings Per Share||P/E Ratio|
|Anupam Rasayan India Limited||6.94||–|
|PI Industries Limited||33.08||65.72|
|Navin Fluorine International Limited||82.60||32.20|
|Astec Lifesciences Limited||24.29||42.73|
As per the peer group selected by Anupam Rasayan in the RHP, the average PE Ratio is 42.81. If we look at the price band of Anupam Rassayan IPO and calculate the P/E Ratio at the higher price of Rs.555, then we get a value of P/E Ratio of 79.97. This is way higher than the industry average. Therefore, the IPO is overvalued.
Anupam Rasayan India Limited proposes to utilize the net proceeds from the issue for:
You can apply for the Anupam Rasayan India Limited IPO by using one of these two methods of payment:
Here are some things that you need to keep in mind before investing in the Anupam Rasayan IPO:
The Anupam Rasayan India Limited IPO is a Main Board IPO for the issue of equity shares having the face value of Rs.10 totaling up to Rs.760 crores. The registrar for the IPO is KFintech Private Limited and the shares are proposed to be listed on the BSE and NSE.
The Anupam Rasayan India Limited IPO opens on March 12, 2021, and closes on March 16, 2021.
The lot size of the Anupam Rasayan IPO is 27 shares. Also, the minimum order quantity is 27 shares.
According to the RHP, the basis of allotment will be finalized by March 19, 2021. Further, investors can expect to receive the credits in their demat accounts by March 23, 2021 and may get listed on March 24.