Specialty chemical company Anupam Rasayan gets Sebi nod for IPO to raise Rs 760 crore

Updated : March 02, 2021 01:20 PM IST

Anupam Rasayan has received market regulator Sebi's approval for launching an initial public offer (IPO) to raise Rs 760 crore.

As per the firm, the issue proceeds would be used mainly for repayment of debt worth Rs 556.20 crore.

Axis Capital, Ambit Private, IIFL Securities and JM Financial are the merchant bankers for the issue.

Specialty chemical company Anupam Rasayan has received market regulator Sebi's approval for launching an initial public offering (IPO) to raise Rs 760 crore. Till now, nine firms have launched an IPO this year.

As per the firm, the issue proceeds would be used mainly for repayment of debt worth Rs 556.20 crore. As of September, the company had a total debt of Rs 861.58 crore.

The company, which filed preliminary papers for the IPO (Initial Public Offer) with the watchdog in December, obtained its observation on February 26, as the latest update with the Securities and Exchange Board of India (Sebi) showed.

Sebi's observation is necessary for any company planning to launch public issues like IPO, follow-on public offer and rights issue.

The Surat-based company has decided to reserve a portion of the offer for its employees and may consider a discount for eligible staff.

Axis Capital, Ambit Private, IIFL Securities and JM Financial are the merchant bankers for the issue.

The company may consider a further issue, by way of a private placement, of equity shares aggregating up to Rs 100 crore at its discretion. And in case the pre-IPO placement is completed, the issue size will be reduced to the extent of it.

Anupam Rasayan commenced operations in 1984 with conventional products and now it makes specialty chemicals that involve multi-step synthesis and complex chemistries.

It has six multi-purpose manufacturing facilities based in Gujarat with a combined aggregate installed capacity of around 23,396 metric tonnes.

In the first half of FY21, the company had posted a profit of Rs 26 crore as against Rs 22 crore in the year-ago period. Revenue for the period stood at Rs 355 crore, up 51.5 percent YoY.

The company has long-term business with clients like Syngenta Asia Pacific, Sumitomo Chemical Company, UPL Ltd across Europe, Japan, US besides India.

The company mainly caters to the agrochemical, personal care and pharmaceutical sectors, which accounted for over 95 percent of its revenues in 2019-20. Its clients include Syngenta Asia Pacific, Sumitomo Chemical Company and UPL Ltd.

(With inputs from PTI)

Published : March 02, 2021 01:20 PM IST

Specialty chemical company Anupam Rasayan gets Sebi nod for IPO to raise Rs 760 crore

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