About Company :-
Incorporated in 1985, Chemplast Sanmar Ltd is a leading specialty chemical manufacturer in India. The company is engaged in the manufacturing
of specialty paste PVC resin, starting materials, and intermediates for agro-chemical, pharmaceuticals, agro-chemical, and fine chemical sectors. It also produces other types of chemicals such as Caustic
Soda, Chlorochemicals, Hydrogen Peroxide, Refrigerant gas, and Industrial Salt. It has four manufacturing facilities, among which, 3 are situated at Mettur, Berigai, and Cuddalore in Tamil Nadu, and one is located in Puducherry at Karaikal.
|Financial Performance : Consolidated Basis (Rs.in Cr.)|
• Issue Opens on 10th August & Closes on 12th August
• Object of the issue : Early redemption of NCDs issued by the company in full.
• Issue Size : Fresh Issue Rs. 1300 Cr., OFS : Rs. 2550 Cr. and Total Issue Size Rs. 3850 Cr.
• Offer Price : Rs. 530 to 541 (F. V. Rs. 5)
• Listing on BSE and NSE Platform
• BRLM : Ambit Pvt. Ltd, Axis Capital, BOB Capital Markets, Credit Suisse, HDFC Bank, ICICI Securities, IIFL Holdings, IndusInd Bank Limited, Yes Securities (India) Limited
• Company Management : Sanmar Holding Ltd.
• Registrar : KFin Techno
• Pre Issue Promoter Holding : 67.04%
• Issue constitutes 45.01% of the post issue paid up capital
• Average of last 3 Yrs. EPS Rs. 16.74
• Pre IPO Equity Capital Rs. 67.04 Cr.
• Post IPO Equity Capital Rs. : 79.05 Cr.
• NAV : 139.15
• Pre IPO P/E Ratio : 17.65
• Post IPO asking P/E on fully diluted equity : 21.05
The Chemplast Sanmar IPO is subscribed 0.16x times on Aug 10, 2021 17:00. The public issue subscribed 0.84x in the retail category, 0.00x in the QIB category, and 0.03x in the NII category.
Recommendation : After delisting in June 2012, company is entering in the market with New
AVTAR against on valuation front the issue is priced negative. P/BV based on negative NAV of Rs. (139.15). Its asking price is at a PE of 21.05 which seem reasonable but it is based on doubtful super earnings Pre-IPO year. It’s a risky IPO so only risk taker investor may consider to apply.
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The author, CA Jayprakash Pandey is a practicing Chartered Accountant (Founder of Jayprakash P & Company) having Office at Mumbai, with more than 5 years of professional cum practical experience, Direct Tax, International Taxation, Indirect Tax & FEMA related advisory, litigation & compliance matters.
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