Anupam Rasayan’s IPO Fully Subscribed On Day 1
Control raw material samples sit inside conical vials in a research laboratory.(Photographer Angel Garcia/Bloomberg)

Anupam Rasayan’s IPO Fully Subscribed On Day 1

Retail investors bet on the initial share sale of Anupam Rasayan, a specialty chemicals maker, on the first day of its subscription.

The Rs 760-crore issue was subscribed 1.32 times as of 5 p.m. on March 12, according to exchange data.

While non-institutional investors subscribed 9%, institutional investors stayed away. The IPO will close on March 16.

Subscription Details:

  • Institutional investors: 0 times.
  • Non-institutional investor: 0.09 times.
  • Retail investors: 2.59 times.

The specialty chemicals maker’s IPO—which is the eleventh so far this year— comprises 1.37 crore shares in a fresh issue, amounting to about 16% of the paid-up equity, at Rs 553-555 apiece, according to its red herring prospectus. At the upper price band, Anupam Rasayan will be valued at Rs 5,545 crore. Promoter shareholding after the maiden issue will fall to 65.4% from 75.8%.

Proceeds from the issue will be primarily used to pay off Rs 563.70 crore in debt, including accrued interest. As on Jan. 31, 2021, Anupam Rasayan had total debt worth Rs 843.5 crore.

Surat-based Anupam Rasayan commenced business as a partnership in 1984 to manufacture and sell chemicals. It was converted into a public limited company in September 2003. Over the years, it expanded to undertake custom synthesis and manufacturing of life science-related and other specialty chemicals. The company derives 68% of its revenue from exports.

Among recent IPOs in the chemicals space are Rossari Biotech Ltd. (July 2020), Chemcon Specialty Chemicals Ltd. (October 2020) and Heranba Industries Ltd. (March 2021). Also, Laxmi Organics Ltd. is set to hit the primary market on March 15.

Axis Capital, Ambit, IIFL Securities, JM Financial are the book running lead managers to the issue.

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