Debt worth Rs 530 crore has been repaid by chemicals maker Anupam Rasayan from the net proceeds of its recently completed initial public offering (IPO). The company will also clear an additional Rs 30 crore debt by the next quarter ending September 2021.

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Rs 760 crore was raised by Anupam Rasayan through its IPO which opened on March 12, 2021 and closed on March 16, 2021.

 

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Speaking to PTI, Anupam Rasayan Chief Financial Officer (CFO) and spokesperson Afzal Malkani said the company's total debt is about Rs 840 crore. The objective of the IPO was to raise Rs 760 crore, out of which Rs 560 crore was for repayment of the debt and the rest was for general corporate purposes, he said.

He said that the company has repaid Rs 470 crore debt as on March 31, 2021 and another Rs 60 crore was repaid in the current quarter that is so far a total of Rs 530 crore debt has been cleared by the company.

"The remaining Rs 30 crore will be repaid either in the current or by next quarter ending September 2021," he added.

The CFO further added that a total of Rs 560 crore debt out of Rs 840 crore, will be cleared by the next quarter and the remaining debt will be on the company's books.

According to Malkani, the balance Rs 200 crore funds from the IPO proceeds would be used for general corporate purposes. About Rs 160 crore has been set aside for cost reduction measures and the rest for working capital, he noted.

Talking about the growth of the company, the CFO said that the company was growing at 34 percent Compound Annual Growth Rate (CAGR) in the last three years and expects the momentum to continue.

"For that, we don't even need capital expenditure. We may require capex for some minor modification and maintenance, which we can do from the company's internal accruals," he was quoted saying by PTI.

As per a regulatory filing, Anupam Rasayan had posted a 52.50 percent jump in its consolidated net profit at Rs 70.3 crore in the 2020-21 fiscal compared to Rs 53.20 crore in the previous year.