The Rs 760-crore public offer of Anupam Rasayan has, so far, been subscribed 3.64 times on the second day of bidding, March 15. The offer has received bids for 3.53 crore equity shares against the IPO size of over 97 lakh equity shares, the subscription data available on exchanges showed.
The retail investors are lending support to the issue as the reserved portion for them has been oversubscribed by 6.60 times, while employees' portion has been booked 93 percent.
The portion set aside for non-institutional investors has seen a subscription of 1.39 times, and that of qualified institutional buyers 37 percent.
Also read: Anupam Rasayan IPO: Top 10 things to know before subscribing to the issue
The public issue, which is fully a fresh issue of Rs 760 crore, opened for bidding on March 12 and will close on March 16. The price band was set at Rs 553-555 per share. The funds will be utilised for repayment of debts.
Anupam Rasayan is custom synthesis and manufacturer of specialty chemicals, primarily focused on agrochemicals. The company has two distinct business verticals - Life sciences specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and other specialty chemicals, comprising of specialty pigment, dyes, and polymer additives. The company competes with leading players like PI Industries and Aarti Industries.
Also read: Anupam Rasayan IPO opens for bidding: Should you subscribe?
"The IPO is valued at 80x and 69x EPS for FY20 and annualized FY21, respectively. Though the valuations looks expensive on P/E multiple, we expect these to moderate in future on account of lower finance cost in future as the issue proceeds will be utilised for debt reduction," Chola Securities said.
"The company has strong and long-term relationships with various multinational corporations (MNCs), including, Syngenta Asia Pacific, Sumitomo Chemical and UPL, which has helped it expand product offerings and geographic reach across Europe, Japan, United States and India," added the brokerage which advised subscribing the issue for a long term.
Also read: Anupam Rasayan IPO: Aggressively priced at 74x P/E for FY21, is it worth subscribing?
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