Anupam Rasayan IPO
(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.
Objects of the Anupam Rasayan IPO:
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:
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:
Recommendation on Anupam Rasayan IPO:
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*ANUPAM RASAYAN LTD LISTING*
*BSE Scrip Code – 543275*
*SYMBOL – ANURAS*
*Listing Dt. 24-03-2021*
ISIIN No. *INE930P01018*
*ISSUE PRICE : RS. 555*
What to do now.. Hold or book loss
🟢 *ANUPAM RASAYAN LIMITED* 🟢
*PREMIUM-89-93*
🔵 *LAXMI ORGANIC IND* 🟣
*PREMIUM 60-65*
🟪 *KALYAN JEWELLERS*🟪
*PREMIUM 0.25-1.00*
🟪 *NAZARA*🟪
*PREMIUM-740-760*
*SUBJECT TO-6750-6650*
🟩 *CRAFTSMAN*🟩
*PREMIUM-37-42*
*SUBJECT TO -350*
_____________________________
Anupam Rasayan ipo Allotment status check:
https://kcas.kfintech.com/ipostatus/
No Allotment in 4 Applications. Again bad luck.
Same
Bought after discount listing @ 511/-.
Gmp 155
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.
Anupam Rasayan IPO subscribed 44.06 times.
What is GMP
So question is
Apply
Or
Avoid?
Apply.
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.
Valuation:
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
Anupam gmp 320 rs.