Chemplast initiated its operations in 1985. The company has been serving almost 3 decades in the chemical segment. It provides the majority of profusion in PVC resins. It has many diversified products under its portfolio. There are 4 manufacturing plants for the company. They are located at Karaikal, Mettur, Cuddalore and Berigai.
IPO DETAILS
The Chemplast Sanmar Limited IPO is set to launch on 10th Aug, 2021. The subscription timeline extends till 12th Aug, 2021. The size for the IPO is 3850 Crore Rs. Shares issued through Offer for sale are 2550 Crore Rs. Shares worth Rs. 1300 Crore are issued through Fresh issue. The minimum lot size is 27 shares and the price is set at 530 Rs. – 541 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.5 and this is a book built issue. The registrar for the company is KARVY FINTECH Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 10th Aug, 2021 |
| CLOSING DATE FOR IPO | 12th Aug, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 5 Rs. per share |
| IPO price band | 530 Rs. – 541 Rs. |
| LOT SIZE | 27 shares |
| MINIMUM ORDER QUANTITY | 27 shares |
| ISSUE SIZE | 3850 Crore Rs. |
| OFFER FOR SALE | 2550 Crore Rs. |
| FRESH ISSUE | 1300 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 24th Aug, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 10th Aug, 2021 |
| CLOSING DATE FOR IPO | 12th Aug, 2021 |
| IPO ALLOTMENT DATE | 18th Aug, 2021 |
| REFUNDS | 20th Aug, 2021 |
| DEMAT A/C CREDITED ON | 23rd Aug, 2021 |
| IPO LISTING DATE | 24th Aug, 2021 |
The Chemplast Sanmar Limited IPO begins for subscription from 10th Aug, 2021. The IPO subscription would continue till 12th Aug, 2021. The allotment status for the shareholders who applied would come on 18th Aug, 2021. The refunds for the ones who did not get allotment would be initiated on 20th Aug, 2021. The DEMAT accounts of shareholders would be credited on 23rd Aug, 2021. The listing of the company would be accompanied on 24th Aug, 2021.
LEAD MANAGERS
The promoter of the company is Sanmar Holdings Ltd . Post IPO launch the shareholding would be close to 54.99% from 100%.
The lead managers are :
- ICICI Securities Limited
- BOB Capital Markets Limited
- IIFL Holdings Limited
- Axis Capital Limited
- Yes Securities India Private Limited
- Ambit Private Limited
- IndusInd Bank Limited
- Credit Suisse Securities India Private Limited
The minimum lot size for the company is decided at 27 shares. This holding accounts to 14607 Rs.. The maximum lot size is decided at 351 shares. This amounts to Rs. 189891. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 27 shares | 14607 Rs |
| Maximum | 351 shares | 189891 Rs |
OBJECTIVES FOR THE IPO
- The money from the IPO can also be utilized to meet general corporate purposes.
- Chemplast wants to redeem its non convertible debentures early. The IPO money will come handy in the same.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 44860 | 41075 | 38015 |
| REVENUE | 38151 | 12265 | 12267 |
| NET PROFIT | 4102 | 461 | 1184 |
Chemplast Sanmar Limited has a great record. The assets of the company have shown a constant growth of almost 3000 Crore RS. every year. The important point is the revenues. This signifies the potential usage of assets. The revenues are almost aligned with the asset valuation. The previous year of 19-20 has been a bit tricky on part of the company. However the recovery was quite good. The latest profit figures indicate almost 4100 Crore Rs of profit. This is almost 10 times the profit earned during the COVID crisis.
The previous figures of profit in 18-19 indicates a 1000 Crore Rs gain. Thus a jump of almost 4 times in 2 years is significant with only 3000 Crore Rs rise in asset valuation. Thus the finances signal a strong company management. The assets are increasing which indicates expansion is constant. The revenues are aligned with assets signalling potential maximum usage of assets. The profits are rapidly growing up signalling a good position of the company in market. Thus it is a perfect IPO to apply for.
PROS
- Chemplast is a major producer in India for PVC resins.
- The company has 3 decades long experience.
- The company has 4 manufacturing plants in India.
- Chemplast has an extremely great financial record.
CONS
- There has been major dilution of promoter holding in the company.
Chemplast Sanmar Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Chemplast Sanmar Limited IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
