The Rs 760-crore Anupam Rasayan initial public supplying (IPO) is set to open for subscription on Friday, 12 March 2021, at a cost band of Rs 553-555 per share. Ahead of the IPO, the speciality chemical firm raised Rs 225 crore from anchor investors. According to the BSE circular, it has allocated 40.48 lakh shares to 15 anchor investors at Rs 555 per share. Among the 18 anchor investors are Aditya Birla Sunlife Mutual Fund (MF), Nomura Funds Ireland Public Ltd Company, Fidelity International, Sundaram MF, SBI Life Insurance Co, IIFL Special Opportunities Fund, Malabar Select Fund and Max Life Insurance.
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The volatility in Indian share industry has hit the grey industry premium of Anupam Rasayan. The grey industry premium of Anupam Rasayan has fallen 10 per cent to Rs 230 apiece so far this week. The shares had been ruling at Rs 785 apiece, at a grey industry premium of 41.44 per cent more than the IPO cost on Thursday. Earlier this week, the shares had been noticed trading at Rs 875 apiece, a grey industry premium of 58 per cent.
Upon listing, Anupam Rasayan India will be joining the listed peers such as PI Industries, Navin Fluorine International Ltd, Astec Lifesciences Ltd and SRF Ltd. The firm has a powerful extended-term partnership with several multinational organizations like Syngenta Asia Pacific Pte Ltd, Sumitomo Chemical Company Ltd, and UPL Limited to expand geographical attain across nations like the United States, Europe, Japan, and India. Analysts at Anand Rathi Share and Stock Brokers Ltd have provided ‘subscribe’ rating to the challenge as the firm has a robust track record of functionality. “It is expected that the company will be able to gain more market share and simultaneously its margins will also improve. It has priced its issue at 95.2x PE at the upper band on a trailing basis which is aggressively priced as compared to its peers,” the analysis and brokerage firm added.
Anupam Rasayan India has six manufacturing facilities out of which 4 are situated at Sachin and two are positioned at Jhagadia with an aggregated installed capacity of 23,438 MT as of December 31, 2020. “At the upper price band of Rs 555, the issue is priced at a 69x P/E and 5.8x P/BV,” Aditya Kondawar, Founder and COO, JST Investments, told TheSpuzz Online. Annualizing the 9MFY21 sales, the firm is coming at 7.5x cost to sales. Kondawar mentioned that the valuations are astronomical.
Investors can bid for a minimum of 27 equity shares and in multiples thereafter, translating to a minimum investment Rs 14, 985. The book operating lead managers to the challenge are Axis Capital Ltd, Ambit Private Ltd, IIFL Securities Ltd and JM Financial Ltd. While the registrar to Anupam Rasayan India Ltd will be KFin Technologies Private Ltd. Marwadi Shares and Finance Ltd has advisable to ‘subscribe’ to the Anupam Rasayan India Ltd IPO based on its previous track record, powerful extended-term partnership with its consumers and also the strategic manufacturing place along with substantial capex in the final 3 fiscals. An analyst at a analysis firm mentioned that thinking about TTM EPS of Rs 5.83 on a post-challenge basis, the firm is going to list at a P/E of 95.16X with a industry cap of Rs 55,445 mn. The challenge is aggressively priced compared to its peers Navin Fluorine is trading at a P/E of 29.6X and PI Industries at 51.4X.