Chemplast Sanmar IPO opens today: Here’s everything you need to know

Chemplast Sanmar IPO: The Rs 3,850 crore initial public offering (IPO) of Chemplast Sanmar will be available from August 10-12, 2021. It has a price band of Rs 530-541 per share.

Chemplast Sanmar IPO: The initial public offering (IPO) of specialty chemicals manufacturer Chemplast Sanmar opened for subscription on Tuesday, August 10, 2021, at a price band of Rs 530-541 per share. The offer will be available till Thursday, August 12, 2021.

Through the offer, Chemplast Sanmar aims to raise Rs 3,850 crore with the help of a fresh issue of equity shares worth Rs 1,300 crore and an offer for sale (OFS) of Rs 2,550 crore. The OFS comprises the sale of Rs 2,463.44 crore by Sanmar Holdings and Rs 86.56 crore by Sanmar Engineering Services.

The Chennai-based company is a leading specialty chemicals manufacturer with a focus on specialty paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors.

The company was delisted nearly a decade ago from the stock exchanges. It was delisted from BSE, NSE and MSE with effect from June 25, 2012, June 18, 2012, and June 25, 2012, respectively.

Chemplast Sanmar said it would utilise an aggregate amount of Rs 1,238.25 crore from the net proceeds towards early redemption of the non-convertible debentures (NCDs) issued by it. In addition, funds will also be used for general corporate purposes.

A total of 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 10 per cent for retail investors.

Investors who wish to subscribe to the Chemplast Sanmar IPO can bid in a lot of 27 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,607 to get a single lot of Chemplast Sanmar. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Friday, August 13, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

ICICI Securities, Axis Capital, Credit Suisse Securities (India), IIFL Securities, Ambit, BOB Capital Markets and HDFC Bank are the global coordinators and book running lead managers, while IndusInd Bank and YES Securities (India) are the book running lead manager to the IPO. KFin Technologies is the registrar of the issue.

Before heading into the IPO, Chemplast Sanmar raised over Rs 1,732 crore (Rs 17,32,49,99,689) from 78 anchor investors in lieu of 3,20,24,029 equity shares at Rs 541 each, data from the stock exchanges showed.

The anchor investors include the likes of SBI Mutual Fund (MF), Axis MF, ICICI Prudential MF, HDFC MF, HDFC Life Insurance Company, Abu Dhabi Investment Authority, Kuber India Fund, Goldman Sachs (Singapore) Pte, Nomura, Morgan Stanley Asia (Singapore) Pte Ltd and Citigroup Global Markets Mauritius among others.

The share allotment is likely to take place on August 18, 2021, and the shares are expected to be listed on August 24, 2021, according to the timeline given in the red herring prospectus (RHP).

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