Anupam Rasayan India Limited Initial Public Offering of Equity Shares opening on Friday, March 12, 2021
- Price Band of Rs. 553.00 – Rs. 555.00 per equity share of face value of Rs. 10 each of Anupam Rasayan India Limited (“Equity Share”)
- Bid/Issue Opening Date – Friday, March 12, 2021 and Bid/Issue Closing Date – Tuesday, March 16, 2021
- Minimum Bid Lot is 27 Equity Shares and in multiples of 27 Equity Shares thereafter
- The Floor Price is 55.30 times the face value of the Equity Shares and the Cap Price is 55.50 times the face value of the Equity Shares.
Chennai, March 8, 2021: Custom synthesis and manufacturing focused specialty chemicals company Anupam Rasayan India Limited(“Company” or “Anupam Rasayan”), will open the Bid/Issue period in relation to its initial public offering of Equity Shares (the “Issue”/ “IPO”) on Friday, March 12, 2021 and close on Tuesday, March 16, 2021. The price band for the Offer has been decided at Rs. 553.00 – Rs. 555.00 per Equity Share. The Company may, in consultation with the book running lead managers (the “BRLMs”), consider participation by Anchor Inve stors which shall be one Working Day prior to the Bid/ Issue open Date, i.e. Wednesday, March 10, 2021.
The Issue aggregating up to Rs. 7,600 million comprises of a complete fresh issuance of Equity Shares, and will be listed on BSE Limited (“BSE”) and the National Stock Exchange of India Limited The Company proposes to utilise the Net Proceeds towards repayment/prepayment of certain indebtedness availed by the Company and for ge neral corporate purposes.
Anupam Rasayan is one of the leading companies engaged in the custom synthesis and manufacturing of speci alty chemicals in Ind ia (Source: “Independent Market Report on Crop Protection, Pha rm aceuticals and Custom Synthesis” dated December 14, 2020 (the “F&S Report”) prepared and released by Frost and Sullivan and com missioned and paid by the Company in connection with the Issue). The Company has two distinct ver ticals which includes life science related specialty chemicals comprising products related to agrochemicals, per sonal care an d pharmaceuticals; and other specialty chemicals, comprising specialty pigment and dyes, and pol ymer addit ive s. Anupam Rasayan has developed strong and long-term relationships with various multina tional corpor ati ons, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited that has hel ped the Company expand its product offerings and geographic reach across Europe, Japan, United States and India. As of December 31, 2020, the Company operates through six multi-purpose manufacturing fac ilities base d in Gujarat, India; with four facilities located at Sachin, Surat, Gujarat and two located at Jhagadia, Bharuch, Gujarat.
From FY18 to FY20, the Company’s total revenue has increased at a CAGR of 24.29 % and its EBITDA for FY20 stood at ₹ 1,348.96 million all of our facilities restarted operations, subject to certain adjustments in working patterns and limited workforce. Despite the impact of the COVID-19 pandemic, the Company’s revenue from operations significantly increased by 45.03% from ₹ 3,718.07 million in the nine months ended December 31, 2019 to ₹ 5,392.20 million in the nine months ended December 31, 2020.
Axis Capital Limited, Ambit Private Limited, IIFL Securities Limited and JM Financial Limited are the book running lead managers to the Issue (“BRLMs”).
he Issue is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, where not more than 50% of the Net Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Category”), provided that the Company in consultation with the BRLMs, may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis (the “Anc hor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids bei ng received from domestic Mutual Funds at or above the price at which Equity SThares are allocated to Anchor Investors. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equ ity Shares shall be added to the QIB Category (other than Anchor Investor Portion). Further, 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Issue Price.
Note: Capitalized terms used and not defined herein shall have the respective meanings ascribed to them in the red herring prospectus dated March 5, 2021 of the Company.
Disclaimers
Anupam Rasayan India Limited is proposing, subject to receipt of requisite approvals, market conditions and oth er considerations, an initial public offering of its equity shares and has filed the Red Herring Prospectus with the Registrar of Companies. The Red Herring Prospectus is available on the websites of Securities and Exchange Bo ard of India, Axis Capital Limited, Ambit Private Limited, IIFL Securities Limited and JM Financial Limited at www.sebi.gov.in, www.axiscapital.co.in, www.ambit.co, www.iiflcap.com and www.jmfl.com. Investors should note that investment in equity shares involves a high degree of risk and for details refer to the Red Herring Prospectus, including the section titled “Risk Factors”.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Sec urities Act”) or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold (i) within the United States only to persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144 A and referred to in the RHP as “U.S. QIBs” (for the avoidance of doubt, the term “U.S. QIBs” does not refer to a category of institutional investor defined under applicable Indian regulations and referred to in the RHP as “QIBs”)) in transac tio ns exempt from, or not subject to, the registration requirements of the Securities Act, and (ii) outside the United States in offshore transactions in reliance on Regulation S and pursuant to the applicable laws of the jurisdictions where those offers and sales are made.
About Anupam Rasayan India Ltd.
The Company commenced its business as a partnership firm in 1984 as a manufacturer of conventional products and evolved over the years into custom synthesis and manufacturing of life science related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers.. The Company’s key focus is on developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.
The Company believes that their ability to meet stringent quality and technical specifications and customiza tions, undertake large number of complex chemical reactions and automated manufacturing capabilities, de velop in-house innovative processes along with strong technical competencies and R&D capabilities, and trans parent cost model, has enabled them to act as a complete one-stop solution for process innovation and develop ment of specialty chemicals for multinational companies in a cost efficient manner. The Company is also one of the leading companies in manufacturing products using continuous and flow chemistry technology on a comme rcial scale in India (Source: F&S Report).
