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NEW DELHI: The initial public offer (IPO) of Anupam Rasayan was subscribed 31 times on Tuesday, the third and final day of bidding.
The issue received 42,74,65,269 bids as of 5:00 pm, against the total 1,65,84,075 shares on offer.
Anupam Rasayan is planning to raise Rs 760 crore from investors. At the upper limit of the price band, the scrip is asking a PE of 95.2 times on a trailing 12-month basis, on a restated EPS of Rs 5.80. This is significantly higher than the peer average of 33 times. Some analysts say the asking valuations exceed growth prospects.
Others insist on subscribing to the issue for the long term, expecting robust growth, market share gains and improved margins for the specialty chemicals company.
All of them though agree that the issue is priced aggressively.
Choice Broking finds the issue aggressively priced, but has assigned a 'subscribe for long term' rating, considering the sectoral tailwinds and Anupam Rasayan’s diversified product applications.
Angel Broking said that the company has incurred significant indebtedness, and an inability to comply with repayment could adversely affect the business. Besides, the brokerage said, the company is experiencing insufficient cash flows to meet required payments on debt and working capital requirements, which could impact its operations.
On the flipside, "The company has strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific, Sumitomo Chemical Company and UPL. The company has posted strong revenue growth of 24.3 per cent CAGR between FY2018 and FY2020. Despite the pandemic, the company has posted revenue growth of 45 per cent for the nine months. Given strong revenue growth and long-term relationships with various multinational corporations, we assign a subscribe rating to the IPO," Angel Broking said.
Reliance Securities said that the IPO is demanding a PE of 80 times FY20 earnings, and 69 times FY21 annualised earnings, which look aggressively priced.
The issue received 42,74,65,269 bids as of 5:00 pm, against the total 1,65,84,075 shares on offer.
Anupam Rasayan is planning to raise Rs 760 crore from investors. At the upper limit of the price band, the scrip is asking a PE of 95.2 times on a trailing 12-month basis, on a restated EPS of Rs 5.80. This is significantly higher than the peer average of 33 times. Some analysts say the asking valuations exceed growth prospects.
Others insist on subscribing to the issue for the long term, expecting robust growth, market share gains and improved margins for the specialty chemicals company.
All of them though agree that the issue is priced aggressively.
Choice Broking finds the issue aggressively priced, but has assigned a 'subscribe for long term' rating, considering the sectoral tailwinds and Anupam Rasayan’s diversified product applications.
Angel Broking said that the company has incurred significant indebtedness, and an inability to comply with repayment could adversely affect the business. Besides, the brokerage said, the company is experiencing insufficient cash flows to meet required payments on debt and working capital requirements, which could impact its operations.
On the flipside, "The company has strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific, Sumitomo Chemical Company and UPL. The company has posted strong revenue growth of 24.3 per cent CAGR between FY2018 and FY2020. Despite the pandemic, the company has posted revenue growth of 45 per cent for the nine months. Given strong revenue growth and long-term relationships with various multinational corporations, we assign a subscribe rating to the IPO," Angel Broking said.
Reliance Securities said that the IPO is demanding a PE of 80 times FY20 earnings, and 69 times FY21 annualised earnings, which look aggressively priced.
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1 Comment on this Story
 | Pankaj Kumar2 hours ago l think it is good for long time |