Chemplast Sanmar IPO Review 2021: With 4 IPOs lined up this week, investors are once again in for a ride. Chemplast Sanmar Ltd IPO will hit the Indian markets from August 10th to August 12th. They aim to raise Rs. ₹3,850 crores through a public offering.

In this article, we look into important information on the Chemplast Sanmar IPO and find out the possible prospects of the company. Keep reading!

Chemplast Sanmar IPO Review – About the Company 

Chemplast Sanmar Logo

Founded in 1985 and based in Chennai, Chemplast Sanmar Ltd is one of India’s leading speciality chemicals manufacturers.

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The company focuses on the manufacture of speciality paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical, and fine chemicals sectors.

The company is part of the Sanmar Group which is one of the oldest groups and has a presence in chemicals, shipping engineering and metals. 

Chemplast Sanmar's assest over the years | Chemplast Sanmar IPO Review

Chemplast Sanmar is the largest manufacturer of speciality paste PVC resins in India in terms of installed production capacity.

The company has an installed capacity of 66,000 tonnes per annum. It is also the third-largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in South India.

In addition to this, the company also produces other chemicals like Caustic Soda, Chlorochemicals, Hydrogen Peroxide, Refrigerant gas, and Industrial Salt. 

The company has 4 manufacturing facilities located in Mettur, Berigai, and Cuddalore in Tamil Nadu, and one is located in Puducherry.  

Chemplast Sanmar profit over the years

It is important to note that Chemplast Sanmar was delisted in 2012 post the financial crisis of 2008 where it faced volatile commodity prices. The management decided it was best to restructure the group in a private set-up. 

Its listed competitors include:

  • PI Industries
  • SRF
  • Finolex Industries
  • Navin Fluorine  

Grey Market Premium of Chemplast Sanmar

The shares of Chemplast Sanmar received a 0% in the grey market before the IPO as of August 9th.

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Chemplast Sanmar IPO Review – Key IPO Information

Sanmar Holdings Ltd. is the promoter of the company. They have appointed ICICI Securities, Axis Capital, Credit Suisse Securities (India), IIFL Securities, Ambit, BOB Capital Markets, HDFC Bank, IndusInd Bank, and YES Securities as the lead managers to the offer. KFin Technologies has been appointed as the registrar for the issue.

ParticularsDetails
IPO Size₹3,850.00 Cr
Fresh Issue₹1,300.00 Cr
Offer For Sale(OFS)₹2,550.00 Cr
Opening DateAug 10, 2021
Closing DateAug 12, 2021
Face Value₹5 per equity share
Price Band₹530 to ₹541 per equity share
Lot Size27 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateAug 24, 2021

Purpose of the Chemplast Sanmar IPO

The proceeds from the IPO will be used for

  • Early redemption of NCDs issued by the company in full.
  • Other general corporate purposes.

In Closing 

The IPO opens on 10th August and closes on 12th August 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Sanmar Holdings Ltd.

That’s all for this post. Do let us know what you think of the Sanmar Holdings Ltd. IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!