IPO Analysis: Anupam Rasayan India Limited

IPO Analysis: Anupam Rasayan India Limited

Anupam Rasayan India Limited is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India. The company evolved into custom synthesis and manufacturing of life science related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers. Their key focus in its custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.

The company has 2 distinct business verticals 

(i) life science related specialty chemicals comprising products related to

agro-chemicals, personal care and pharmaceuticals, and 

(ii) other specialty chemicals, comprising specialty pigment and dyes, and polymer additives. 

In Fiscal 2020 and in the 6 months ended September 30, 2020, revenues from their life science related specialty chemicals vertical accounted for 95.37% and 92.48%, respectively, while revenue from other specialty chemicals accounted for 4.63% and 7.52%, respectively, of its revenue from operations, in such periods.

The company has developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Co. Ltd. and UPL Ltd. that has helped them expand their product offerings and geographic reach across Europe, Japan, United States and India. 

The Government of India has also recognized the company as a 3-Star export house.

Company Strength:

• Strong and long-term relationships with diversified customers across geographies with significant entry barriers;
• Core focus on process innovation through consistent R&D, value engineering and complex chemistries;
• Diversified and customized product portfolio with a strong supply chain;
• Automated manufacturing facilities with strong focus on environment, sustainability, health and safety measures;
• Consistent track record of financial performance;
• Experienced promoters and strong management team.

Objective of the Issue:

The net proceeds from the IPO will be utilized towards the following purposes:

• To make prepayment/repayment of company's indebtedness including accrued interest.
• To meet general corporate purposes.

Brief Financials of The Company: (in Rs Cr)

Important Dates to Remember:

Verdict:

One can apply for listing gains. GMP as on 10-03-2021 is Rs 305-310.

Sources: Various publications 

Disclaimer: The information provided herein is based on publicly available information and other sources believed to be reliable, but involve uncertainties that could cause actual events to differ materially from those expressed or implied in such statements. The document is given for general and information purpose and is neither an investment advice nor an offer to sell nor a solicitation. While due care has been exercised while preparing this document, we do not warrant the completeness or accuracy of the information. We will not accept any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice.

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