Chemplast Sanmar IPO opens Aug 10; check price band, grey market activity, issue size, other details

Upon successful listing, Chemplast Sanmar will join the likes of PI Industries, SRF Ltd, Finolex Industries and Navin Fluorine International Ltd

Chemplast Sanmar Rs 3,850-crore will open for subscription on Tuesday, 10 August 2021, at a price band of Rs 530-541 per share of face value of Rs 5 each. The company is eyeing stock market listing, after it got delisted nearly a decade ago. Specialty chemicals manufacturer public issue will close on Thursday, 12 August. The offer comprises fresh issue shares worth Rs 1,300 crore and an offer for sale (OFS) of up to shares worth Rs 2,550 crore by promoters. The OFS comprises the sale of shares worth Rs 2,463 crore by Sanmar Holdings Ltd and Rs 86.5 crore equity shares by Sanmar Engineering Services Ltd. Chemplast Sanmar was delisted from BSE, NSE and MSE with effect from June 25, 2012, June 18, 2012 and June 25, 2012, respectively.

No activity in the grey market was seen in Chemplast Sanmar, according to the people who deal in shares of unlisted companies. Investors can bid for a minimum of 27 shares and in multiples thereafter. A minimum of Rs 14,607 per lot at the upper band of IPO price. Up to 75 per cent of the net offer will be reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors are required to ensure that the bank account used for bidding is linked to their PAN.

Upon successful listing, Chemplast Sanmar will join the likes of PI Industries, SRF Ltd, Finolex Industries and Navin Fluorine International Ltd. The industry P/E ratio stands at 43.1x. Global coordinators and book running lead managers include ICICI Securities, Axis Capital, Credit Suisse Securities Pvt Ltd, IIFL Securities, Ambit Pvt Ltd, BOB Capital Markets Ltd, HDFC Bank, IndusInd Bank, and YES Securities. The seven global co-ordinator and book running lead managers and two book running lead managers associated with Chempalst Sanmar offer handled 44 public issue in the past three year, of which 12 issues closed below the offer price on listing day. The registrar to the issue is KFin Technologies Pvt Ltd.

As of December 2020, its net debt stood at Rs 1,187.58 crore. Chemplast Sanmar is specialty chemicals manufacturer in India with focus on specialty paste PVC resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. The total production of specialty paste PVC resin in India in financial year 2020 stood at 78 KTPA against a demand of 143 KTPA. In India, Grasim Industries Ltd. (including Aditya Birla Chemicals), DCM Shriram Limited (DCM Shriram), Gujarat Alkalies and Chemicals Ltd.(GACL), and Reliance Industries Limited (RIL) have a combined capacity of more than 2800 KTPA.