IPO Review - Discussion until listing

Anupam Rasayan files for ₹ 760­ crore initial float

Surat­based specialty chemicals player Anupam Rasayan Ltd on Thursday announced the filing of draft red­herring prospectus (DRHP) with market regulator SEBI to raise ₹760 crore through an IPO.
The company will use the issue proceeds for repayment of debt. It may consider a discount
for staffers bidding for the employee reservation portion of the issue, an official statement
said.
Axis Capital, Ambit, IIFL Securities and JM Financial have been
appointed as the bankers to the issue.

Anupam’s revenues grew at a CAGR of 24.29 per cent from FY18 to FY20 and its EBITDA for FY20 stood at ₹134.90 crore. Half yearly revenues (April-­September) grew 51.51 per cent, from ₹234.40 crore to ₹355.12 crore on a year ­on ­year basis, despite the Covid­19 pandemic.

The company has six multipurpose manufacturing facilities in Gujarat—at Jhagadia and
Sachin near Surat—with combined aggregate installed capacity of 23,396 tonnes, of which
6,726 tonnes was added in March 2020.
Anupam had started operations in 1984 with conventional products. Now it makes specialty chemicals involving complex processes such as etherification, acylation, cyclisation,
diazotisation and hydrolysis, it said.

It caters primarily to the agrochemical, personal care and pharmaceutical sectors, which
accounted for 95.37 per cent of its revenues in 2019-­20. Its clients include Syngenta, Asia Pacific, Sumitomo Chemical Company and UPL, across Europe, Japan, the US and India, it added.

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