Speciality chemicals manufacturer Chemplast Sanmar Limited is set to open for IPO subsription on August 10 and close August 12. The company plans to raise Rs 3850 crore through fresh issue or equity shares worth Rs 1300 crore and offer for sale of equity share totalling Rs 2550 crore by its current shareholders and promoters.
The offer for sale has Sanmar Holdings selling equity shares worth Rs ₹2,463.44 crore and Sanmar Engineering Services Ltd selling Rs 86.56 crore.
Chemplast Sanmar is one of the leading specialty chemicals manufacturer in India focusing on specialty paste PVC resin and manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors.
The company is the largest manufacturer of specialty paste PVC resin in India, in terms of installed production capacity as of end of December 2020. It is also the third largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide, each in Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Kerala and Puducherry in terms of installed production capacity as of December-end 2020.
Chemplast is part of SHL Chemicals Group, which is a constituent of the Sanmar Group. Canadian investor Prem Watsa led Fairfax India Holdings Corporation has invested in the SHL Chemicals Group since 2016.
- The company is well-positioned to capture favourable market dynamics due to supply shortage and growing demand for its products such as specialty paste PVC resin.
- Leadership position at leveraging custom manufacturing process and expertise in a technologically intensive industry with high entry barriers
- Vertically-integrated operations for manufacturing of its products through stable supply of raw materials competitive cost structure and incremental revenues
- Quality Manufacturing Facilities with a strong focus on sustainability
The Promoter of the company is Sanmar Holdings Limited (SHL) and SHL holds 13,24,80,000 equity shares, according to its Red Herring Prospectus.
Below is the company’s profit and loss account statement for the past three years. The company has reported profit during all the three years.
Purpose of the IPO
The company plans to use the net Proceeds for the following purposes
- Early redemption of non-Convertible debentures issued by the company in full, totalling to Rs 1238.25 crore
- General corporate purposes
IPO Opening Date
August 10, 2021
IPO Closing Date
August 12, 2021
Book Built Issue IPO
₹5 per equity share
₹530 to ₹541 per equity share
Min Order Quantity
Rs 3850 crore
IPO Listing Date
August 24, 2021
IPO Lot Size