About the Company:
Chemspec Chemicals Ltd is one of the leading manufacturers globally of critical additives for FMCG ingredients used in skin and hair care products and intermediates for pharmaceutical APIs used in anti-hypertension drugs.
Company is amongst the top 4 manufacturers globally of the products across our product basket.
Company is one of the largest manufacturers of UV absorbers globally and are among the top two global manufacturers of personal care ingredients catering to skin and hair care.
Company is also the largest manufacturer of ‘piroctone olamine’ in India and are the largest producer of ‘chemilide’ (an anti-bacterial ingredient) in the world with an approximate market share of 70%.
Company’s Products:
Company’s products are segregated into two segments, (a) FMCG; and (b) pharmaceuticals.
As part of the FMCG product portfolio, company manufactures active ingredients used in sunscreen lotions and creams, anti-bacterial soaps, anti-dandruff shampoos, and preservatives.
As part of pharmaceutical product segment, company manufactures intermediaries for anti-hypertension drugs.
Company’s Manufacturing Facility:
Company manufactures the products at a facility in Taloja, Maharashtra. As of March 31, 2021, the facility had a production capacity of 6,000 TPA.
The facility has been audited and approved by the US FDA, making Chemspec Chemicals Ltd amongst a few global companies in the pharmaceutical intermediates and FMCG segments that is registered with US FDA.
Company also proposes to expand the manufacturing capacities, in order to address the growing demand for existing as well as newer products.
Company’s Total capacity and capacity utilization.
Products manufactured by the Company for FMCG segment:
Under FMCG segment, company manufactures UV filters which are used as the primary ingredient in sunscreens, vitamins used in skin care, fairness and anti-ageing creams and ingredients used antibacterial soaps and handwashes.
Company is the largest producer in India and among the top three suppliers of UV filters across the globe. Further, company also manufactures molecules used in anti- dandruff shampoos.
Company’s customers in the FMCG segment include Beiersdorf AG, Unilever Supply Chain Company AG, L’Oreal, DSM Nutritional Products Ltd, Godrej Consumers Products Ltd, etc.
Products manufactured by the Company for Pharmaceuticals segment:
Under pharmaceuticals segment, company manufactures intermediates for sartans, which is relatively new group of pharmaceutical drugs used to treat hypertension.
Customers in this segment include producers of sartan intermediates in India as well as globally, such as Glenmark Life Sciences, Dr. Reddy’s Laboratories, CTX Lifesciences, USV Private Ltd, etc., with whom company’s relationship extends between five to 20 years.
Company’s period of association with customers:
Company’s Distribution Network:
Company distributes the products across the country and the world through a strong distribution network, which is instrumental in effective supply- chain management.
Over the years, company has evolved from a local supplier to FMCG companies in India to a supplier to multinational FMCG companies in 43 countries across five continents.
Competitors in the Business:
As there are significant entry barriers to this business, most of company’s competitors are multinational companies. Such competitors include BASF Corporation, Symrise, Nanjing Cosmos, Clariant Limited, etc.
Management Team:
- Mr. Prakash Mehta (Designations: Chairman and Independent Director)
- Mr. Rushabh Vora (Designations: Managing Director)
Objectives of the Issue:
Offer for Sale (OFS): (Rs.)
- Company will not receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 335.2 | 607.0 | 510.3 |
| Net Profit | 5.1 | 60.7 | 81.0 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Chemspec Chemicals Ltd | 2 | 16.11 | TBA | 44.23% | 36.43 |
| Galaxy Surfactants Ltd | 10 | 85.2 | 36.89 | 23.2% | 367.06 |
| Vinati Organics Ltd | 1 | 26.2 | 77.16 | 17.4% | 150.16 |
| Aarti Industries Ltd | 5 | 30.0 | 28.66 | 14.9% | 201.75 |
| SRF Limited | 10 | 205.5 | 36.89 | 17.5% | 1,157.12 |
| Fine Organic Industries Ltd | 5 | 39.3 | 78.78 | 16.5% | 238.55 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on:. | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE & BSE |
| Equity Shares Offered | Will be Updated |
| Equity Shares Prior | Will be Updated |
| Equity Shares after the issue | Will be Updated |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 16.11 | Will be Updated | 44.23% | 36.43 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Chemspec Chemicals Limited Plot No. 3-C, MIDC Taloja Tal – Panvel District – Raigad, Navi Mumbai – 410 208 Maharashtra, India. Telephone: +91 22 2740 1932 E-mail: investor.relations@chemspec.co.in; Website: www.chemspec.co.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C101, 247 Park L.B.S. Marg Vikhroli (West) Mumbai – 400 083 Telephone: +91 22 4918 6200 Investor email: chemspec.ipo@linkintime.co.in Website: www.linkintime.co.in |
