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
| Financial Performance : Consolidated Basis (Rs.in Cr.) | |||
| FY | 19 | 20 | 21 |
| Total Revenue | 1266.77 | 1265.51 | 3815.11 |
| PAT | 118.46 | 46.13 | 410.24 |
| EPS | 4.53 | 2.04 | 30.6 |
| RONW( %) | 6.39 | 5.45 | NA |
Issue Details
• 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
Subscription Status
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.
| Category | IPO Subscription |
|---|---|
| QIB | 0.00x |
| NII |
0.03x |
| RII |
0.84x |
| Total |
0.16x |
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.
Author can be reached at cajayprakashpandcompany@gmail.com
You can drop me message for your valuable feedback or mail your query or any assignment at above mail ID.
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.
Disclaimer:
The purpose of this is to share knowledge and it is for education purpose only. This does NOT constitute NOR does this form part of neither it is to be construed as, A LEGAL OPINION. The analysis is solely based on the reading abilities of the Author. They may be correct/incorrect as per you. No representation or warranty, express or implied, is made or given in respect of any information provided. UNDER NO circumstances should any recipient rely on this communication as a basis for any legal decision. The views expressed are of personal to the author. They do not reflect the views of any organization he may be directly/indirectly associated with. Neither author nor any of its affiliates accepts any legal liability, or responsibility, for, or provides any assurance or guarantee of accuracy, authenticity, completeness, correctness, dependability, reliability, suitability or timeliness of, any part of this article. The contents of this article are based only on the understanding of the Law, Rules, Notifications, etc. of the author and THEY ARE NOT BASIS FOR ANY LEGAL OPINION.