Anupam Rasayan Ends 5% Lower On Stock Market Debut

Anupam Rasayan Ltd. became the second company so far in 2021 to list at a discount on stock market debut even as investors piled into its initial public offering that concluded last week.

The stock listed at Rs 520 apiece, a discount of 6.3% to its issue price of Rs 555, according to data available on bourses. The stock hit a low of Rs 501 in early trade. Shares traded in a broad range of Rs 501-548 after listing.

Indian Railways Finance Corp., the borrowing arm of Indian Railways, was the only other company so far this year to debut at a discount to its issue price.

The Rs 760-crore IPO of Anupam Rasayan was subscribed 45.21 times, led by non-institutional investors who bid for 97.78 times the shares on offer. The portions for institutional and retail investors were subscribed 66 times and 10.8 times, respectively.

The company will use the proceeds from the issue primarily to retire Rs 563.70 crore in debt, including accrued interest. As on Jan. 31, 2021, Anupam Rasayan had total debt worth Rs 843.5 crore.

The company earns 68% of its revenue from exports—the key regions being Europe (35.97%), Singapore (17.23%), Japan (5.83%) and the U.S. (3.69%). India accounts for 31.95% of its revenue.

Anupam Rasayan’s revenue grew at an annualised rate of 24.29% in FY18-FY20, while Ebitda reported a CAGR of 34.6% during the period. That caused the Ebitda margin to expand from 21.8% in FY18 to 25.5% in FY20. Profit after tax grew at a compounded annual rate of 13.2% over FY18-20.

Shares ended 5.2% lower at Rs 525.9.