Chemplast Sanmar Limited IPO: Study Before Subscribing

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Chemplast Sanmar Limited IPO

One of the leading specialty chemical manufacturer in India, Chemplast Sanmar Limted will launch its initial public offer (IPO) on Aug 10, 2021. The offer will close on Aug 12, 2021 and the company has fixed the price band at ₹530-541 per equity share.

About Chemplast Sanmar Limited

Chemplast Sanmar Limted is a leading specialty chemical manufacturer in India. The company is engaged in the manufacturing of specialty paste PVC resin, starting materials, and intermediates for agro-chemical, pharmaceuticals, agro-chemical, and fine chemical sectors. It also produces other types of chemicals such as Caustic Soda, Chlorochemicals, Hydrogen Peroxide, Refrigerant gas, and Industrial Salt.

Chemplast Sanmar Limited IPO Issue Details

OPENS ON:Aug 9, 2021
CLOSES ON:Aug 11, 2021 
Price band:₹530 to ₹541 per equity share
Lot size:27 Shares 
One lot costing:₹14,607
Face Value:₹5 per equity share 
Listing on:NSE, BSE
Issue size:₹3,850.00 crores (Fresh issue: ₹1,300.00 crores + Offer For Sale: ₹2,550.00 crores)
Shareholding:Promoter holding will stand at 54.99%  post-issue from 100%  pre-issue.

Will list on the exchange on Aug 24, 2021.

Objects of the issue:

  • Early redemption of NCDs issued by the company in full. 
  • Meet general corporate purposes.

Interesting facts about Chemplast Sanmar Limited IPO:

  • Chemplast Sanmar Limited is one of India’s leading manufacturers of specialty paste PVC resin on the basis of installed production capacity, as of December 31, 2020. 
  • In addition, Chemplast Sanmar Limited is also the third largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in the South India region, on the basis of installed production capacity as of December 31, 2020 and one of the oldest manufacturers in the chloromethanes market in India. 
  • It has 4 manufacturing facilities, of which, 3 are located in Tamil Nadu at Mettur, Berigai and Cuddalore, and 1 is located in Puducherry at Karaikal.
  • Considering the FY-21 adjusted EPS of Rs.25.95 on post issue basis, the company is going to list at a P/E of 20.85 with a market cap of Rs.85,537 mn, while its peers namely PI Industries and SRF are trading at a P/E of 61.16 and 37.26 respectively.

Get the complete coverage of the Chemplast Sanmar Limited IPO in the MSFL Research Report Here. To apply for Chemplast Sanmar Limited IPO, you can do it from our Marwadi Shares & Finance Ltd website.

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