Anupam Rasayan has opened its Initial Public Offering (IPO) of the current year on 12th March 2021. It is important to know about the company first before any sort of investment.
About the company
Anupam Rasayan is a company that primarily deals with specialty chemicals. It is one of the 4th companies in the specialty chemicals sector coming up with an IPO in the recent year. The other three are Rossari, Chemcon, and Heranba Industries. This shows the growth of the specialty chemical business in India. The company deals with the custom synthesis and manufacturing of specialty chemicals. It means the company manufactures chemicals required for special purposes. Their major customers include the agrochemicals industries which use their chemicals to enhance their agricultural output.
Their inception dates back to the 1980s where 4 people joined hands to start the operations. Gradually, the company grew into stature becoming a public limited company in 2003. The company became an international exporter in 2010 when they supplied specialty chemicals to Singapore. Currently, they supply to several other countries including the USA and Japan.
As discussed earlier, Anupam Rasayan deals primarily with specialty chemicals. If we further break it down, almost 95% of them are related to life sciences. Any specialty chemicals related to living beings come under this. The rest of the 5% are other types mainly dyes, pigments, or polymers. If we further look into the life sciences category, more than 70% of revenue comes from the crop protection segment. Crop protection refers to the production of insecticides or fungicides which are tailor-made for specific crops. As a result, the major share of their specialty chemicals is from agrochemicals industries.
Moreover, the company’s major revenue comes from its exports accounting for over 65%. That is why the government of India has given Anupam Rasayan the recognition of a 3-star export house. It can be inferred about the bright prospects the company has to offer.
One major concern for the company is the revenue of its top 10 clients. Its top 10 customers account for over 86% of revenue which means that even if one of the top 10 clients backs out, the dent to the company would be significant.
The IPO opens up on the 12th of March, 2021. It’s a book-built 100% fresh issue. Further details are provided below
|IPO Opening Date||March 12, 2021|
|IPO Closing Date||March 16, 2021|
|Issue Type||Book built issue IPO|
|Face Value||₹10 per equity share|
|IPO Price||₹553 to ₹555 per equity share|
|Market Lot||27 shares|
|Min. Order Quantity||27 shares|
|Listing At||BSE, NSE|
|Issue Size||[.] Eq shares of ₹10 (aggregating up to ₹760.00 Cr)|
As compared to its peers like PI industries, Navin fluorine, Astec life sciences, the values of total revenue, Face value, and NAV per share are the lowest. The values are good standalone, but it is not performing that well as compared to its peers.
By looking at its previous issuing of shares to KPI LLC in 2020, the prices were as low as 197 per equity share. But now, the IPO that is soon to open has its IPO price of about 555 INR. Almost double the previous prices offered 6 months ago. The company has not performed that extraordinarily in this period of 6 months and the prices here are a bit of disappointment.