Anupam Rasayan IPO

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(i) Anupam Rasayan is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India (Source: F&S Report). They have commenced business as a partnership firm in 1984 as a manufacturer of conventional products and have, over the years, evolved 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. Their key focus in their custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.

(ii) They have two distinct business verticals;

(a) life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals.

(b) other specialty chemicals, comprising specialty pigment and dyes, and polymer additives.

(iii) The company operates 6 manufacturing facilities in Gujarat, India, with 4 facilities located at Sachin, Surat and 2 located at Jhagadia, Bharuch with an aggregate installed capacity of 23,438 MT, as of December 31, 2020. Their dependence on imported raw materials as a percentage of the total raw materials purchases has decreased from 26.01% in Fiscal 2018 to 22.44% in Fiscal 2020.

(iv) In Fiscal 2020 and in the six months ended September 30, 2020, revenues from their life science related specialty chemicals vertical accounted for 95.37% and 92.48%, respectively, of their revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 7.52%, respectively, of their revenue from operations, in such periods.

(v) According to the F&S Report, there exist significant entry barriers in the custom synthesis and manufacturing industry including customer validation and approvals, high quality standards, stringent specifications, and expectation from customers for process innovation and cost reduction. Further, the acquisition of a customer is a long process since the end-customer is required to register the manufacturer with the regulatory bodies as a supplier of intermediate products or active ingredients (Source: F&S Report). They have developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited that has helped us expand our product offerings and geographic reach across Europe, Japan, United States and India. In particular, they have been manufacturing products for certain customers for over 10 years. In the six months ended September 30, 2020, they manufactured products for over 45 domestic and international customer, including 15 multinational companies. The Government of India has also recognized their Company as a three star export house.

(vi) No impact of Covid-19 Impact on Anupam Rasayan

On account of the COVID-19 pandemic, India had imposed a nationwide lockdown on March 24, 2020, however, since company’s life science related specialty chemicals operations were determined to be operating in an essential industry, they were allowed to resume operations in a phased manner and by April 15, 2020 all of their facilities restarted operations, subject to certain adjustments in working patterns and limited workforce. Despite the impact of the COVID-19 pandemic, the revenue from operations significantly increased by 45.03% from ₹ 371.81 crore in the 9 months ended December 31, 2019 to ₹ 539.22 crore in the 9 months ended December 31, 2020.


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Objects of the Anupam Rasayan IPO:

The net proceeds of the Issue Rs.760 Cr., i.e. Gross proceeds of the Issue less the Issue expenses (“Net Proceeds”) are proposed to be utilised in the following manner: 1. Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest). 2. General corporate purposes.

Anupam Rasayan IPO Details:

Open Date: Mar 12 2021
Close Date: Mar 16 2021
Total Shares: 13715000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 760 Cr.
Lot Size: 27 Shares
Issue Price: ₹ 553-555 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 24 2021

Promoters And Management:

(i) Mr. Anand S Desai, aged 47 years, is our Promoter and the Managing Director. (ii) Dr. Kiran C Patel, aged 71 years, is the Promoter and a Non-Executive Director and Chairman of the Company.

Financials of Anupam Rasayan IPO:

Particulars (cr) 9MFY21 Mar-20 Mar-19 Mar-18
Sales 539 529 501 341
Purchase of materials 0 0.5 8 6
Changes in Inventories -96 -86 -6 -48
Employee Benefit Expenses 20 21 19 16
Other expenses 170 162 133 98
Operating Profit 445 432 347 269
OPM % 82.56% 81.57% 69.26% 78.89%
Other Income 24 11 19 8
Interest 50 45 24 14
Depreciation 38 29 23 18
Profit before tax 67 71 66 50
Net Profit 48 53 50 40
No. of shares 8.62 8.62 8.62 8.62
EPS in Rs 6.03 6.94 6.60 6.59

Comparison With Peers:

Anupam Rasayan has following Peers; 1. PI Industries Limited = 68x 2. Navin Fluorine International Limited = 33x 3. Astec Life Sciences = 42x Anupam Rasayan is coming up with an IPO at P/E of 79x.

Recommendation on Anupam Rasayan IPO:

Review and Recommendation of InvestorZone are 5/10 Pros: 1. Strong and long-term relationships with diversified customers across geographies with significant entry barriers. 2. Core focus on process innovation through consistent R&D, value engineering and complex chemistries. 3. Experienced promoters and strong management team. Cons: 1. The asking valuation is very high. Peers are trading at an industry average of 42x and Anupam Rasayan is asking valuation of 79x based on FY20 PAT.

Registrar of Anupam Rasayan IPO:

  1. Kfin Technology Private Limited

Company Address:

Corporate Identity Number: U24231GJ2003PLC042988 Registered and Corporate Office: 8110, GIDC Industrial Estate, Sachin, Surat 394 230, Gujarat, India; Tel: (+91 261) 239 8991

Discussion on Anupam Rasayan IPO:



    *BSE Scrip Code – 543275*


    *Listing Dt. 24-03-2021*

    ISIIN No. *INE930P01018*

    *ISSUE PRICE : RS. 555*




    *PREMIUM 60-65*


    *PREMIUM 0.25-1.00*

    🟪 *NAZARA*🟪

    *SUBJECT TO-6750-6650*

    🟩 *CRAFTSMAN*🟩

    *SUBJECT TO -350*


    Anupam Rasayan IPO subscribed 10.77 times in the retail category, 65.74 times in QIB, and 97.42 times in the NII category aggregating 44.06 times in total by Mar 16, 2021 05:00.

    Out of next 3
    If we want to.take chance in only 2
    In which we should invest

    The company is led by experienced Promoters, some of whom have significant experience in the chemical industry. Anand S Desai and Mona A Desai have an experience of approximately 28 years and 18 years, respectively, in the chemicals industry. Further, Dr. Kiran C Patel, one of their Promoters and the Chairman, is a businessperson experienced in the healthcare sector, and their Key Managerial Personnel have significant experience in the chemical industry, for instance, Dr. Nileshkumar Naik has been associated with the company since its incorporation, while Dr. Anuj Thakkar and Ravi Desai have been associated with them since 2005 and 2012 respectively.


    1. IPO price = 555 per share.
    2. Mcap = ~5500 Cr
    3. Sales = ~550 Cr
    4. Mcap/Sales = 10x
    5. P/E = 79x.

    Industry Average is 42.

    Peers trading at:

    PI Industries Limited = 68x

    Navin Fluorine International Limited = 33x

    Astec Life Sciences = 42x

    The company has issued preferential shares to the following investors:

    1. KPI LLC= 885,055 Equity Shares at Rs.249 per share. ( September 26, 2020).

    2. KPI LLC= 885,055 Equity Shares at Rs.249 per share. ( September 30, 2020).

    3. KPI LLC= 1,475,093 Equity Shares at Rs.249 per share. ( October 10, 2020).

    4. KPI LLC= 1,475,093 Equity Shares at Rs.249 per share. ( October 17, 2020).

    5. KPI LLC= 3,361,600 Equity Shares at Rs.249 per share. ( November 04, 2020).

    Under standing the business model of the company:

    The company has 2 business verticals: Life Science Related Specialty Chemicals and Other Specialty Chemicals.

    1. Life science related Specialty Chemicals: The company manufactures a variety of life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals.

    a) Agrochemicals : Manufactures agro intermediates and agro active ingredients (insecticides, fungicides and herbicides).

    b) Personal Care: Manufactures anti-bacterial and ultra violet protection intermediates and ingredients

    c) Pharmaceuticals: Developing intermediates and ‘key starting materials’ for APIs, material sciences and surface chemistry.

    2. Other Speciality Chemicals : The other specialty chemicals are used in diverse end-user segments, comprising

    a) Specialty Pigments
    b) Specialty Dyes
    c) Polymer Additives

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