{"id":2443,"date":"2021-03-11T17:30:00","date_gmt":"2021-03-11T12:00:00","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2443"},"modified":"2021-03-10T18:03:41","modified_gmt":"2021-03-10T12:33:41","slug":"analysing-anupam-rasayan-ipo","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/","title":{"rendered":"Analysing Anupam Rasayan IPO"},"content":{"rendered":"\n<p>With over 10 IPOs issued in Indian stock markets within just 3 months of 2021, it looks like the markets have got no chill. Today, we analyse Anupam Rasayan India Limited <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a>. A well-known name in the specialty chemicals market, Anupam Rasayan holds great potential, thanks to its significant exports, increasing demand for its products, and an eco-friendly business approach.<\/p>\n\n\n\n<p>If you aren\u2019t familiar with an IPO and how to apply for one, consider reading <a href=\"https:\/\/www.tickertape.in\/blog\/all-you-need-to-know-about-ipos\/?ref=blog\">All you need to know about IPOs<\/a> and<a href=\"https:\/\/www.tickertape.in\/blog\/ipo-process\/?ref=blog\"> All you need to know about applying for IPOs<\/a> to get a fair understanding.<\/p>\n\n\n\n<p><strong>This article covers<\/strong><\/p>\n\n\n\n<p><a href=\"#limited\">About Anupam Rasayan India Limited<\/a><br><a href=\"#verticals\">Business verticals of Anupam Rasayan Ltd<\/a><a href=\"#revenue\"><br><\/a><a href=\"#manufacturing\">Manufacturing and R&amp;D facilities of Anupam Rasayan<br><\/a><a href=\"#raw\">Raw materials of Anupam Rasayan Ltd<\/a><br><a href=\"#products\">Products of Anupam Rasayan India Limited<br><\/a><a href=\"#about\">About Anupam Rasayan Ltd IPO<br><\/a><a href=\"#subscription\">Subscription eligibility<br><\/a><a href=\"#proceeds\">Utilisation of the IPO proceeds<br><\/a><a href=\"#book\">Book running lead managers and registrar to the IPO<br><\/a><a href=\"#valuation\">Valuation of Anupam Rasayan Ltd<br><\/a><a href=\"#peers\">Peers of Anupam Rasayan India Ltd<br><\/a><a href=\"#financials\">Financials of Anupam Rasayan Limited<br><\/a><a href=\"#prospects\">Prospects of Anupam Rasayan India Ltd<\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#About-Anupam-Rasayan-India-Limited\" title=\"About Anupam Rasayan India Limited\">About Anupam Rasayan India Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Business-verticals-of-Anupam-Rasayan-India-Ltd\" title=\"Business verticals of Anupam Rasayan India Ltd\">Business verticals of Anupam Rasayan India Ltd<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Life-science-related-specialty-chemicals-vertical\" title=\"Life science-related specialty chemicals vertical\">Life science-related specialty chemicals vertical<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Other-speciality-chemicals-vertical\" title=\"Other speciality chemicals vertical\">Other speciality chemicals vertical<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Manufacturing-and-R-D-facilities-of-Anupam-Rasayan\" title=\"Manufacturing and R&amp;D facilities of Anupam Rasayan\">Manufacturing and R&amp;D facilities of Anupam Rasayan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Raw-materials-of-Anupam-Rasayan\" title=\"Raw materials of Anupam Rasayan\">Raw materials of Anupam Rasayan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Products-of-Anupam-Rasayan-India-Limited\" title=\"Products of Anupam Rasayan India Limited\">Products of Anupam Rasayan India Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#About-Anupam-Rasayan-IPO\" title=\"About Anupam Rasayan IPO\">About Anupam Rasayan IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Subscription-eligibility\" title=\"Subscription eligibility\">Subscription eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Utilisation-of-IPO-proceeds\" title=\"Utilisation of IPO proceeds\">Utilisation of IPO proceeds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Book-running-lead-managers-and-registrar-to-the-IPO\" title=\"Book running lead managers and registrar to the IPO\">Book running lead managers and registrar to the IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Valuation-of-Anupam-Rasayan-Ltd\" title=\"Valuation of Anupam Rasayan Ltd\">Valuation of Anupam Rasayan Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Peers-of-Anupam-Rasayan-India-Ltd\" title=\"Peers of Anupam Rasayan India Ltd\">Peers of Anupam Rasayan India Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Financials-of-Anupam-Rasayan-Limited\" title=\"Financials of Anupam Rasayan Limited\">Financials of Anupam Rasayan Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/analysing-anupam-rasayan-ipo\/#Prospects-of-Anupam-Rasayan-India-Ltd\" title=\"Prospects of Anupam Rasayan India Ltd\">Prospects of Anupam Rasayan India Ltd<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"limited\"><span class=\"ez-toc-section\" id=\"About-Anupam-Rasayan-India-Limited\"><\/span><strong>About Anupam Rasayan India Limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Established in 1984, Anupam Rasayan Ltd is a leading specialty chemicals company, which manufactures products while focusing on sustainability. It is engaged in custom synthesis and the manufacturing of specialty chemicals involving complex chemistries and multi-step synthesis. Anupam Rasayan has a wide geographic reach across Europe, Japan, and the US, thanks to its long-term relationships with Sumitomo Chemical, Syngenta Asia Pacific, and UPL.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"verticals\"><span class=\"ez-toc-section\" id=\"Business-verticals-of-Anupam-Rasayan-India-Ltd\"><\/span><strong>Business verticals of Anupam Rasayan India Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Anupam Rasayan has 2 business verticals:<\/p>\n\n\n\n<ul><li>Life science-related specialty chemicals<\/li><li>Other specialty chemicals<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Life-science-related-specialty-chemicals-vertical\"><\/span><strong>Life science-related specialty chemicals vertical<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Under this vertical, Anupam Rasayan manufactures intermediates and ingredients for fungicides, insecticides, and herbicides consumed by agrochemical players. In addition, Anupam Rasayan is also involved in manufacturing ultraviolet protection and anti-bacterial ingredients for pharma and FMCG companies. Its portfolio of chemical intermediates has expanded from 25 to 41, thus increasing its product offerings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other-speciality-chemicals-vertical\"><\/span><strong>Other speciality chemicals vertical<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The products belonging to this vertical of Anupam Rasayan are used in pigments, polymer additives, and dyes. Despite contributing a mere 10% to the overall revenue of the company, this segment holds great potential to grow in the coming years, thanks to the increasing demand for pigments and dyes in the paint and textile industries.<\/p>\n\n\n\n<iframe loading=\"lazy\" width=\"600\" height=\"400\" src=\"https:\/\/live.amcharts.com\/dlOWM\/embed\/\" frameborder=\"0\"><\/iframe>\n\n\n\n<p>90% of Anupam Rasayan\u2019s\u00a0 revenue comes from the Life sciences specialty segment and the rest 10% comes from the Other specialty segment. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"manufacturing\"><span class=\"ez-toc-section\" id=\"Manufacturing-and-R-D-facilities-of-Anupam-Rasayan\"><\/span><strong>Manufacturing and R&amp;D facilities of Anupam Rasayan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As of 31<sup>st<\/sup> Dec 2020, Anupam Rasayan operated via 6 multi-purpose manufacturing facilities in:<\/p>\n\n\n\n<ul><li>4 at Sachin, Surat<\/li><li>2 at Jhagadia, Bharuch<\/li><\/ul>\n\n\n\n<p>The company has a dedicated in-house R&amp;D facility recognized by The Department of Scientific &amp; Industrial Research.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"raw\"><span class=\"ez-toc-section\" id=\"Raw-materials-of-Anupam-Rasayan\"><\/span><strong>Raw materials of Anupam Rasayan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>20% to 25% of Anupam Rasayan\u2019s key raw materials: benzene derivatives and phenol, are imported.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"products\"><span class=\"ez-toc-section\" id=\"Products-of-Anupam-Rasayan-India-Limited\"><\/span><strong>Products of Anupam Rasayan India Limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Personal care<\/li><li>Agrochemicals<\/li><li>Pharmaceuticals<\/li><li>Polymer additives<\/li><li>Specialty pigments<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"about\"><span class=\"ez-toc-section\" id=\"About-Anupam-Rasayan-IPO\"><\/span><strong>About Anupam Rasayan IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Rs 760 cr-worth Anupam Rasayan IPO opens on 12<sup>th<\/sup> Mar and closes on 16<sup>th<\/sup> Mar<\/li><li>The price band of the IPO is set at Rs 553 \u2013 Rs 555 per share<\/li><li>The issue comprises entirely of fresh issuance of shares<\/li><li>The post-issue implied market capital of Anupam Rasayan is expected to be Rs 5,527 \u2013 Rs 5,544 cr<\/li><li>The bid lot size is 27 shares and multiples thereof<\/li><li>Shares reserved for employees would be offered a discount of Rs 55 apiece<\/li><li>Anupam Rasayan will list its shares on BSE and <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"subscription\"><span class=\"ez-toc-section\" id=\"Subscription-eligibility\"><\/span><strong>Subscription eligibility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Up to 50% of the IPO is reserved for qualified institutional buyers (QIBs)<\/li><li>35% of the IPO is set aside for retail investors<\/li><li>15% of the issue is reserved for non-institutional investors<\/li><li>Up to 2,20,000 shares worth Rs 11 cr are reserved for eligible employees<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"proceeds\"><span class=\"ez-toc-section\" id=\"Utilisation-of-IPO-proceeds\"><\/span><strong>Utilisation of IPO proceeds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The funds raised via Anupam Rasayan IPO would be utilised to:<\/p>\n\n\n\n<ul><li>Make repayment or prepayment of debts<\/li><li>For general corporate purposes<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"book\"><span class=\"ez-toc-section\" id=\"Book-running-lead-managers-and-registrar-to-the-IPO\"><\/span><strong>Book running lead managers and registrar to the IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While the book running lead managers to the issue are Ambit, Axis Capital, JM Financial, and IIFL Securities, KFin Technologies Private Ltd. is the registrar to the IPO.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"valuation\"><span class=\"ez-toc-section\" id=\"Valuation-of-Anupam-Rasayan-Ltd\"><\/span><strong>Valuation of Anupam Rasayan Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Anupam Rasayan\u2019s PE based on 9 mth-ended FY 2021 EPS is 69, making the issue fully priced. On the other hand, the company is valued at 36.1X FY 2023 earnings at the higher price band of Rs 555 apiece.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"peers\"><span class=\"ez-toc-section\" id=\"Peers-of-Anupam-Rasayan-India-Ltd\"><\/span><strong>Peers of Anupam Rasayan India Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Anupam Rasayan has listed peers such as:<\/p>\n\n\n\n<ul><li>SRF with a P\/E of 30.58x<\/li><li>PI Industries with a P\/E of 695.72x<\/li><li>Astec Lifesciences with a P\/E of 462.73x<\/li><li>Navin Fluorine International with a P\/E of 32.20x<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"financials\"><span class=\"ez-toc-section\" id=\"Financials-of-Anupam-Rasayan-Limited\"><\/span><strong>Financials of Anupam Rasayan Limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite the lingering impact of the pandemic, Anupam Rasayan reported attractive growth numbers on the revenue, <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-ebitda\/\">EBITDA<\/a>, and operational margins fronts.<\/p>\n\n\n\n<ul><li>From FY 2018 to FY 2020, the company\u2019s total revenue zoomed 24.29% annually<\/li><li>The company\u2019s EBITDA for FY 2020 was Rs 134.89 cr<\/li><li>Despite the impact of coronavirus, Anupam Rasayan\u2019s revenue from operations grew 45.03% at Rs 539.22 cr during the 9-mth ended 31<sup>st<\/sup> Dec 2020<\/li><li>Total revenue grew at a <a href=\"https:\/\/www.tickertape.in\/blog\/compound-annual-growth-rate\/\">CAGR<\/a> of 24.29% from FY 2018 to FY 2020. During the same period, the export segment recorded an impressive growth of 32.94% CAGR<\/li><li>Over 60% of Anupam Rasayan Ltd\u2019s revenue comes from its exports<\/li><li>From FY 2018 \u2013 FY 2020, the company\u2019s revenue from its Life sciences vertical zoomed at 26.3% CAGR to Rs 504 cr. During the 9-mth ended FY 2021, the segment\u2019s revenue increased 40.7% y-o-y to clock Rs 506 cr<\/li><li>During FY 2018 \u2013 FY 2020, the revenue from the other chemical speciality segment zoomed at 1.4% CAGR clocking Rs 25 cr. However, the revenue has galloped to Rs 34 cr, growing at 171.8% y-oy in the 9-mth ended FY 2021<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Anupam-1024x461.png\" alt=\"\" class=\"wp-image-2445\" width=\"737\" height=\"332\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Anupam-1024x461.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Anupam-300x135.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Anupam-768x346.png 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Anupam.png 1387w\" sizes=\"(max-width: 737px) 100vw, 737px\" \/><figcaption><strong>Financials for FY 2020, FY 2019, and FY 2019<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"prospects\"><span class=\"ez-toc-section\" id=\"Prospects-of-Anupam-Rasayan-India-Ltd\"><\/span><strong>Prospects of Anupam Rasayan India Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The adoption of the China+1 strategy is likely to fuel Anupam Rasayan\u2019s exports and growth<\/li><li>Further, the increasing focus on health and hygiene in India and food demand globally also opens up new doors of opportunities for Anupam Rasayan Ltd<\/li><li>Thanks to the company\u2019s Green manufacturing and Green growth values, Anupam Rasayan Ltd has developed safer, eco-friendly, and novel routes for various products. With the future of businesses skewed towards sustainability, Anupam Rasayan is better-equipped for the coming years<\/li><\/ul>\n\n\n\n<p>Here you go. You have all the information needed to make an informed investment decision. Still, we urge you to do your homework before subscribing to Anupam Rasayan India Limited IPO.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An analysis of Anupam Rasayan IPO. The company is a well-known name in the specialty chemicals market, which holds great potential, thanks to its significant exports, increasing demand for its products, and an eco-friendly business approach.<\/p>\n","protected":false},"author":27,"featured_media":2444,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1727],"tags":[233,234,227,16,208,44],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/AR-ipo.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2443"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2443"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2443\/revisions"}],"predecessor-version":[{"id":2448,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2443\/revisions\/2448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2444"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}