The shares of specialty chemicals companies are receiving strong traction in the stock markets. And now another specialty chemicals manufacturer is set to hit the stock exchanges. We bring you all the key details about Chemplast Sanmar Limited’s IPO.
Key details
- IPO size: ₹3,850 crore
- Fresh issue: ₹1,300 crore
- Price band: ₹530-₹541 per share
- Lot size: 27 shares
- Cost per lot: ₹14,607
- Issue opens: 10 August 2021
- Issue closes: 12 August 2021
- Basis of allotment date: 18 August 2021
- Initiation of refunds: 20 August 2021
- Credit of shares to demat account: 23 August 2021
- Expected listing date: 24 August 2021
About Chemplast Sanmar Limited
Incorporated in 1985, Chemplast Sanmar Limited (CSL) is a specialty chemical manufacturer in India. The company is one of the leading manufacturers of specialty paste PVC resin, which is used for making artificial leather, tarpaulin, gloves, conveyor belts and coated fabrics. It is also engaged in custom manufacturing of starting materials and intermediates that are used in pharmaceutical, agro-chemical and fine chemicals sectors.
The company also manufactures caustic soda and hydrogen peroxide. In fact, as of 31 December 2020, CSL is the third-largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in south India in terms of installed production capacity.
Besides these chemicals, the company also makes chloromethanes (used by pharmaceutical, refrigeration and agrochemical companies), suspension PVC resin (used for making pipes and fittings, films and sheets, window and door profiles, wires and cables) and refrigerant gas (used as cooling agent). Meanwhile, the company has posted healthy financial performance between FY19 and FY21. Its revenue and net profit have grown at a CAGR of 74% and 86%.
About the issue
The IPO size is ₹3,850 crore. Of this, the fresh issue is ₹1,500 crore, which will be used for early redemption of NCDs (Non-convertible debentures) and general corporate purposes. The remaining ₹2,550 crore is the offer for sale.
IPO allocation quota
| QIB | NIB | Retail |
| 75% | 15% | 10% |
To know more about the IPO, read its red herring prospectus here. The issue opens on 10 August 2021 and you can subscribe to Chemplast Sanmar Limited with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!