Choice Equity Broking IPO report on Anupam Rasayan India
Anupam Rasayan India Ltd. (Anupam Rasayan), one of the leading companies involved in the custom synthesis & manufacturing of specialty chemicals in India is planning to raise up to Rs. 7,600mn through an IPO, which opens on 12th Mar. and closes on 16th Mar. 2021. The price band is Rs. 553 - 555 per share. • The issue comprises of fresh issue only. Of the net proceeds, around Rs. 5,637mn will be utilized to repayment/prepayment of certain indebtedness availed by the company. Residual funds will be used for general corporate purposes.
Valuation and Outlook
At higher price band of Rs. 555, Anupam Rasayan is demanding a TTM P/E multiple of 95.2x (to its restated TTM EPS of Rs. 5.8), which is significantly higher than the peer average of 33x. Thus the issue seems to be aggressively priced. Considering the sectoral tailwinds and Anupam Rasayan’s diversified product applications, we assign a “Subscribe for Long Term” rating for the issue.
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