Specialty Chemicals Company Anupam Rasayan files for Rs. 760 Cr IPO

Surat Based, Custom Development and Manufacturing focused speciality chemicals company, Anupam Rasayan has filed its DRHP with the regulators to raise an aggregate of Rs. 760 Crs. The issue proceeds would be used mainly for repayment of debt. As stated in the DRHP, the company may consider an employee discount for eligible employees bidding for the employee reservation portion.

The company commenced operations in 1984 with conventional products and has now carved a niche for itself into speciality chemicals that involve multi step synthesis and complex chemistries such as Etherification, Acylation, Cyclization, Diazotization and Hydrolysis etc. It currently operates out of 6 multi-purpose manufacturing facilities based in Gujarat of which 4 facilities are located in notified Industrial Estate at Sachin and are in close proximity to the Adani Hazira Port, the latter 2 are located in notified Industrial Estate at Jhagadia. All the facilities have a combined aggregate installed capacity of around 23,396 metric tonne, out of which 6,726 metric tonne was added in March 2020 with the commercialization of Jhagadia Unit - 5 and Sachin Unit - 6.

Owing to its R&D capabilities and transparent cost model, it has been able to act as a "one-stop solution" for process innovation and development of "life science related speciality chemicals" catering to the agrochemical, personal care and pharmaceutical sectors which in FY20 accounted for 95.37% of its revenues and "Other speciality chemicals" used in speciality pigments and polymer additives contributed the balance. Anupam is one of the few companies in the world to have developed continuous and flow chemistry technology on a commercial scale and has been acknowledged for is innovation capabilities by its customers and has long term business with clients like Syngenta Asia Pacific, Sumitomo Chemical Company, UPL Limited across Europe, Japan, United States and India.

From FY18 to FY20, the company's revenues have grown at CAGR of 24.29% and its EBITDA for FY20 stood at Rs. 134.90 Crs. In spite of the lockdown imposed due to the COVID-19 pandemic the company's half-yearly revenues increased by 51.51% i.e. from Rs 234.40 Crs to Rs 355.12 Crs for the comparable periods of September 30, 2019 and September 30, 2020, respectively.

India's specialty chemicals industry stands to achieve serious growth in the global speciality chemicals segment, as currently the Indian speciality chemicals segment caters to only 1-2% of the global demand and is poised to grow at a 10-11% CAGR over the next 5 years, due to the rising demand from end user industries globally. (Source: F&S Report)

Bankers appointed to the Issue are Axis Capital, Ambit Private, IIFL Securities and JM Financial.

Source : Equity Bulls

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