Anupam Rasayan IPO: Subscribe! Check all details highlighted by Anand Rathi
Anupam Rasayan is one of the leading companies engaged in the custom synthesis and manufacturing of speciality chemicals in India. The issue opens on 12 Mar 2021 and closes on 16 Mar 2021. The Price Band is Rs 553-Rs 555 and the Market Lot size is of 27 shares and the multiple thereof. The Issue Size is Rs 760 cr and Total number of shares offered are 13,693,693.
Anupam Rasayan is one of the leading companies engaged in the custom synthesis and manufacturing of speciality chemicals in India. The issue opens on 12 Mar 2021 and closes on 16 Mar 2021. The Price Band is Rs 553-Rs 555 and the Market Lot size is of 27 shares and the multiple thereof. The Issue Size is Rs 760 cr and Total number of shares offered are 13,693,693.
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, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers.
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Anupam Rasayan's key focus is on custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.
Anupam Rasayan has developed strong and long-term relationships with various multinational corporations, including Syngenta Asia Pacific, Sumitomo Chemical Company Limited and UPL Limited that has helped it expand product offerings and geographic reach across Europe, Japan, United States and India. In particular, it has been manufacturing products for certain customers for over 10 years. In the nine months ended December 31, 2020, Anupam Rasayan manufactured products for over 53 domestic and international customers, including 17 multinational companies. The Government of India has also recognized the Company as a three-star export house.
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. In addition, custom synthesis manufacturing is on the rise in India and the 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.
It is to be believed that Anupam Rasayan is well positioned to capitalize on these opportunities owing to their successful track record of custom synthesis and manufacturing of products, low dependence on raw material imports from China, established relationships with multinational corporations, automated manufacturing infrastructure, and established R&D capabilities along with their focus on improving cost efficiency and productivity.
Anupam Rasayan Valuation:
In the recent past, Company has a robust track record of performance. It is expected that Company will be able to gain more market share and simultaneously its margins will also improve. Company has priced its issue at 95.2x PE at the upper band on a trailing basis which is aggressively priced as compared to its peers.
However, considering the rising fancy for life care and specialty chemicals segment linked with future performance trends, the company is expected to do well post listing going forward. Moreover, Company has a strong financial position and has been generating positive cash flow. Anand Rathi is positive on the long-term prospects of the Company and recommend a "Subscribe" rating to this IPO.
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