Anupam Rasayan's initial public offering (IPO) opened for subscription on 12th March and will be live till March 16th. The Anupam rasayan has raised Rs.225 cr. From anchor investors, other mutual funds and insurance companies and, alternative investment funds.
For its 760-crore initial share sale, Anupam Rasayan has set a price band of 553-555 per share.
To apply for Anupam rasayan as well as other active IPO, Use our IPO 2021 portal. Which enables you to apply 2x faster with different modes of payment. (Mainly UPI).
Anupam Rasayan, founded in 1984, is one of India's leading companies in the cotton synthesis and specialty chemical manufacturing industries. The company operates in two verticals: 1. specialty chemicals used in agrochemicals, personal care, and pharmaceuticals, and 2. other specialty chemicals such as pigments and dyes, polymer additives, and so on. Many multinational corporations, such as Syngenta Asia Pacific Pte Ltd, Sumitomo Chemical Company Ltd, and UPL Limited, have strong long-term relationships with the company to extend geographical scope through countries such as the United States, Europe, Japan, and India.
Strong and long-term relationships with diversified customers across geographies with significant entry barriers:
According to the F&S Report, the custom synthesis, and manufacturing industry presents significant entry barriers, including customer validation and approvals, expectation from customers for process innovation and cost reduction, high-quality standards, and stringent specifications.
The core focus on process innovation through consistent R&D, value engineering, and complex chemistries:
The company has a dedicated in-house R&D facility and a pilot plant located at Sachin Unit – 6, which is equipped with laboratories engaged in process development, process innovation, new chemical screening, and engineering. It is also one of the companies in manufacturing products using continuous and flows chemistry technology on a commercial scale in India.
Diversified and customized product portfolio with a strong supply chain
As a result of backward integration, the dependence on imported raw materials as a percentage of total raw materials purchases has decreased from 26.01% in Fiscal 2018 to 25.95% in Fiscal 2019 and further to 22.44% in Fiscal 2020.
Diversification of product portfolio
The R&D team is focused on building knowledge-based value-added products, new innovative processes, scaling up the capacity of existing products while lowering the cost of production, and improving the existing design parameters to increase the yields and thus the overall product quality. The company also remains focused on expanding its chemistry expertise and entering into new value chains by adding new reaction capabilities at manufacturing facilities.
The company has strong and long-term relationships with diversified customers across geographies with significant entry barriers and a focus on complex molecules in the early stage of their lifecycle and high growth potential with applications in the life science domain. Favorable industry dynamics such as India accounting for approximately 1% to 2% of the global exportable specialty chemicals, indicating a large scope of improvement and widespread opportunity. The Government of India’s ‘Make in India’ campaign is also expected to act as a stimulus to the emergence of India as a manufacturing hub for the chemicals industry. Future growth can be expected to come from expanding the chemistry expertise and entering new value chains offering higher value addition, and thus generating higher margins and increasing profitability. The proceeds will be used to bring down debt which will help improve financial leverage and improve margins. The offer is priced at a 6x P/B as of September 2020. We recommend a SUBSCRIBE rating to the issue.
Mr. Anand S Desai, Dr. Kiran C Patel, Ms. Mona A Desai, KPI LLC and RIRCPL.