Speciality chemicals company, Anupam Rasayan shares traded at more than 45 percent premium in the grey market ahead of its initial public offering (IPO). The company's issue will open on March 12 and close on March 16.
Anupam Rasayan's shares were available at Rs 805-815 in the grey market - a premium of Rs 250-260, or 45-47 percent, over the higher end of the issue's price band of Rs 555 per share, the data available on the IPO Watch showed.
The price band for the offer was fixed at Rs 553-555 per share.
The premium has dropped to Rs 250-260 today from Rs 310-320 the previous day.
The Surat-based custom synthesis and manufacturing focused specialty chemicals company aims to raise Rs 760 crore through its public issue, which is a complete fresh issue. The IPO funds will be utilised for debt repayment and for general corporate purposes.
"Considering TTM EPS of Rs 5.83 on a post-issue basis, the company is going to list at a P/E of 95.16X with a market-cap of Rs 55,445 million. The issue is aggressively priced compared to its peers; Navin Fluorine is trading at a P/E of 29.6X and PI Industries at 51.4X," Marwadi Shares and Finance said.
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The company's strong and long-term relationship with diversified customers across geographies with significant entry barriers is one of the major competitive strengths, but a huge debt repayment obligation is a key risk, the brokerage feels.
Marwadi Shares recommended subscribing to the Anupam Rasayan India IPO.
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Anupam Rasayan has two distinct verticals - life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals; and specialty chemicals, comprising specialty pigment and dyes, and polymer additives.
Axis Capital, Ambit Private, IIFL Securities and JM Financial are the book running lead managers to the issue.