Chemplast Sanmar IPO ends with decent subscription

Published on Aug 13, 2021 11:43

The initial public offer of Chemplast Sanmar received bids for 8.66 crore shares as against 3.99 crore shares on offer, according to stock exchange data. The issue was subscribed 2.17 times.

The qualified institutional buyers (QIBs) category was subscribed 2.70 times. The retail individual investors (RIIs) category was subscribed 2.29 times. The non-institutional investors (NIIs) category was subscribed 1.03 times.

The issue opened for bidding on Tuesday (10 August 2021) and closed on Thursday (12 August 2021). The price band of the IPO was fixed at Rs 530-541 per share.

The IPO comprised of a fresh issue of up to Rs 1,300 crore and an offer for sale (OFS) of up to equity shares aggregating up to Rs 2,550 crore. The company will not receive any proceeds from the OFS.

The company proposes to utilize the net proceeds of the fresh issue towards early redemption of NCDs issued by the company amounting Rs 1,238.25 crore and balance towards general corporate purposes.

The company had issued non-convertible debentures aggregating to Rs 1,270 crore. The tenure of the NCDs is for seven years from the date of first allotment, i.e, 20 December 2019, with an interest rate of 17.5% p.a. As on 31 May 2021, the outstanding NCDs aggregated to Rs 1,238.25 crore.

Ahead of the IPO, Chemplast Sanmar on 9 August 2021 finalized allocation of 3,20,24,029 equity shares to anchor investors, at Rs 541 per equity share, aggregating to Rs 1,732.49 crore.

Chemplast Sanmar (CSL), the flagship company of Sanmar Group, is a specialty chemicals manufacturer in India with focus on specialty paste PVC (poly vinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. CSL is one of India`s leading manufacturers of specialty paste PVC resin on installed production capacity, as of 31 December 2020. In addition, CSL is the third largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in the South India region, on installed production capacity as of 31 December 2020, and one of the oldest manufacturers in the chloromethanes market in India.

The company reported a consolidated net profit of Rs 410.24 crore and total income of Rs 3798.73 crore in the twelve months ended 31 March 2021.