Anupam Rasayan IPO: The issue date is Friday and it has opened on time. The price band is in the range of Rs 553-555/share. The total issue size is of Rs760 cr (at Rs.555/share). It includes a fresh issue of 1,37,15,495 equity shares (includes 2,20,000 equity shares reserved for employees at a discount of Rs 55/share).

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Profitmart Securities' Avinash Gorakshkar said that Anupam Rasayan IPO looks expensive and leaves very little upside on the table. One could see moderate listing gains considering the popularity of the speciality chemical sector one may see a listing price of Rs 625 to 650 on listing. Long term investors however, need to wait as the company's working capital cycle is the longest in the entire chemical pack which is not a good sign and discounts the strong 45% sales growth achieved by the company.

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Background of Anupam Rasayan India:

Anupam Rasayan is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India (Source: F&S Report). They 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 multistep synthesis and complex technologies, for a diverse base of Indian and global customers. Their key focus in the custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.

Anupam Rasayan India has two distinct business verticals: 

Life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals
Other specialty chemicals, comprising specialty pigment and dyes, and polymer additives

In Fiscal 2020 and in the nine months ended December 31, 2020, revenues from life science related specialty chemicals vertical accounted for 95.37% and 93.75%, respectively, of their revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 6.25%, respectively, of their revenue from operations, in such periods. 

Anupam Rasayan has developed strong and long-term relationships with various multinational corporations, including Syngenta Asia Pacific Pte, Sumitomo Chemical Company Limited and UPL Limited that has helped the company to expand their product offerings and geographic reach across Europe, Japan, United States and India. In particular, they have been manufacturing products for certain customers for over 10 years. In the nine months ended December 31, 2020, the company manufactured products for over 53 domestic and international customers, including 17 multinational companies. The Government of India has also recognized Anupam Rasayan as a three star export house.