About the Company:
Anupam Rasayan Ltd is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India.
Company has two distinct business verticals (i) life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and (ii) other specialty chemicals, comprising specialty pigment and dyes, and polymer additives.
In Fiscal 2020 , revenues from life science related specialty chemicals vertical accounted for 95.37% of revenue from operations, while revenue from other specialty chemicals accounted for 4.63% of revenue from operations, in such periods.
Company has expanded the commercialized product portfolio from 25 products in Fiscal 2018 to 34 products in Fiscal 2020 and 36 products in the six months September 30, 2020.
Anupam Rasayan 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.
Company’s manufacturing Facilities:
As of September 30, 2020, company operated six multi-purpose manufacturing facilities in Gujarat, India, with four facilities located at Sachin and two located at Jhagadia and an aggregate installed capacity of 23,438 MT.
The number of domestic and international customers for whom Anupam Rasayan has manufactured products for during the periods indicated:
Long-term relationships with various multinational corporations.
Company has 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.
Company has been manufacturing products for certain customers for over 10 years. In the six months ended September 30, 2020, company has manufactured products for over 45 domestic and international customer, including 15 multinational companies.
The Government of India has also recognized Anupam Rasayan Ltd as a three star export house.
Installed Capacity and Capacity Utilization:
Competitors in the Business:
The Indian specialty chemicals industry is fragmented in nature. The key players in contract manufacturing include, PI Industries and Aarti Industries.
In addition, there are several international players, specifically from China, United States and European Union, engaged in contract manufacturing of specialty chemicals
- Dr. Kiran C Patel (Designation: Chairman and Non-Executive Director)
- Ms. Mona A Desai (Designation: Vice-Chairman and Whole-time Director)
Objectives of the Issue:
Fresh Issue:(Rs. 760 cr)
- Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest)
- General corporate purposes.
Positives for the Company:
Strong and long-term relationships with diversified customers across geographies with significant entry barriers.
- Company has developed strong and long-term relationships with various multinational corporations that has helped us expanding the product offerings, processes and geographic reach.
- Company’s customers are typically engaged in various industries, including agrochemicals, personal care, pharmaceuticals, specialty pigments and dyes, and polymer additives, and spread across various geographies.
- Company has established relationships with various multinational corporations, such as, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited, across Europe, Japan, United States and India.
Expanding the commercialized product portfolio:
- Company has expanded the commercialized product portfolio from 25 products in Fiscal 2018 to 34 products in Fiscal 2020 and 36 products in the six months September 30, 2020.
Diversified and customized product portfolio with a strong supply chain:
- Over the years,company has diversified, expanded and evolved the operations from a manufacturer of conventional products into custom synthesis and manufacturing of life science related specialty chemicals and other specialty chemicals, which have diverse applications across various industries.
Life Science related Specialty Chemicals:
- Company manufactures a variety of life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals.
- Company manufactures agro intermediates and agro active ingredients for the agrochemicals industry which are used in the manufacture of, amongst others, insecticides, fungicides and herbicides.
Future Growth prospectus for Speciality Chemicals in India.
- India’s specialty chemicals industry is expected to grow at a CAGR of approximately 10% to 11% over the next five years, due to rising demand from end-user industries, along with tight global supply on account of stringent environmental norms in China.
- Further, the India accounts for approximately 1% to 2% of the global exportable specialty chemicals, indicating a large scope of improvement and widespread opportunity.
- In addition, custom synthesis manufacturing is on the rise in India and contract research and manufacturing services market is expected to grow at a rate of 12% in the next five years, owing to strong growth from end-use demand.
‘China plus one’ strategy.
- Many multinational companies are finding an alternative to China with their ‘China plus one’ strategy, Anupam Rasayan Ltd believes that it can offer customers with a genuine and reliable option to satisfy their custom synthesis and manufacturing of specialty chemicals requirements.
Financials of the Company:
|(in Crores)||FY 18||FY 19||FY 20||30th Sept 20|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Anupam Rasayan Ltd||10||6.94||79.97||9.62%||83.06|
|PI Industries Ltd||1||33.08||69.33||17.43%||189.64|
|Navin Fluorine International Ltd||2||82.60||30.25||28.93%||285.38|
|Astec Lifesciences Ltd||10||24.29||46.43||19.25%||126.17|
|Issue Opens on||12th March 2021|
|Issue Closes on:.||16th March 2021|
|Issue Price||Rs.553 – 555|
|Retail Category Allocation||35%|
|Minimum Lot||27 Shares|
|Issue Size||Rs.760 cr ($104 million)|
|Market Cap||Rs.5545 cr ($750 million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||1,36,93,694|
|Equity Shares Prior to the Issue||8,62,06,896|
|Equity Shares after the Issue||9,99,00,590|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||On or Before 19th March 2021|
|Initiation of Refunds||On or Before 22nd March 2021|
|Credit of Equity Shares:||On or Before 23rd March 2021|
|Listing Date:||On or Before 24th March 2021|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 05:00 PM)||Shares Offered||12th March||15th March||16th March|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
KfinTech Website: http://kfintech/IPO/Allotment_Status
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|Company Contact Info:|
|Anupam Rasayan Ltd
8110, GIDC Industrial Estate
Sachin, Surat 394 230
Tel: (+91) 26123 98991
India; Tel: (+91 261) 239 8991
|IPO Registrar Info:|
|KFin Technologies Private Limited
Selenium Tower B
Plot 31 & 32, Gachibowli
Financial District, Nanakramguda
Serilingampally, Hyderabad 500 032
Tel: (+91 40) 3321 1000