The much-awaited Initial Public Offer (IPO) of Specialty chemicals producers in India, Chemplast Sanmar is opening from 10th August 2021, Tuesday and will end on 12th August 2021, Thursday. Many investors are eying this offer for a long time, as they see huge returns in the long term, however, because of the negative net worth many investors are hesitating and are finding it hard to make a conclusion whether they should apply for its Initial Public Offer.
Chemplast Sanmar Ltd IPO Allotment Status
Chemplast Sanmar Limited is a recognized as one of the leading specialty chemicals producers in India with a focus on specialty paste Polyvinyl Chloride (PVC) resin and custom manufacturing of starting materials and intermediates for agrochemical, fine chemical sectors as well as Pharmaceutical. It is one of the prominent manufacturers of specialty paste PVC resin in India, meanwhile, as of 31st December 2020, the installed production capacity of the company is reported to be one of the highest in our country. Not to mention, as of 31st December 2021, on the basis of Installed manufacturing capacity, the company is the largest producer of hydrogen peroxide and the third-largest producer of caustic soda in the South India region each.
Chemplast Sanmar Ltd: History, Promoters & Financials
Chemplast Sanmar Ltd was initially established in 1985, while 10 years from now, its promoter and promoter group delisted the company from the stock exchange. The purpose behind it is stated to be that the company wanted to raise equity resources freely without the presence of any intermediary.
In March 2011, the net worth of the company started to deteriorate while its debt/equity ratio reached 6:1, largely impacting the company’s finances. Also, it has been reported that the company was having liquidity problems to overcome, thus, the promoter decided to extend unsecured loans, which ultimately led to the delisting of the company. The company’s financial position as of 31st March 2021 is listed below:
- Total Assets: Rs. 4486.09 Crore
- Total Revenue: Rs. 3815.10 Crore
- Profit After Tax (EAT): Rs. 410.24 Crore
Chemplast Sanmar Ltd: IPO details
- Issue Date:- 10th to 12th August 2021
- Issue Price (Fixed):- Rs. 530 to Rs. 541 per equity share
- Lot Size:- 27 Shares
- Maximum Investment Amt:- Rs. 14,607
- Issue Size:- Rs. 3,850 Crore
- Fresh Issue:- Rs. 1,300 Crore
- Offer for Sale (OFS):- Rs. 2,550 Crore
- Face Value (FV):- Rs. 5 per equity share
- IPO Listing Date: 24th August 2021
- Listing At: BSE & NSE
The Chemplast Sanmar Ltd has opened its IPO for subscription from today onwards, that is, 10th August 2021 to raise an amount of Rs. 3,850 crore. The issue size of the IPO contains a fresh issue worth Rs. 1,300 crore and an offer for sale (OFS) of Rs. 2,550 crore. The company has fixed the price of its new initial offer ranging from Rs. 530 to Rs. 541 per equity share, while the face value of each equity share is set at Rs. 5.
The IPO will probably be listed in the National as well as Bombay Stock Exchange on 24th August 2021, while the basis of the allotment date is 18th August 2021. The proceeds from the fresh issue will be used by the company for funding of early redemption of NCDs (Non-Convertible Debentures) issued by the company in full, the worth of which is reported to be Rs. 1238.25 Crores and also to meet general corporate objectives.
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