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Anupam Rasayan India Limited IPO 2021 : Key Details and IPO Dates

Anupam Rasayan India Limited is actively involved in the production of agrochemicals and manufacturing of special chemicals. The company started functioning in 1984 and has been giving better results and more product diversification ever since. The company has a varied line of chemicals used into multiple fields of business. The chemicals produced by the company are widely used as agrochemicals, chemicals for the pharma industry and personal care as well. The chemicals also involve pigments and dyes and polymer additives. Hence the company is involved in manufacturing chemicals utilized in various industries. The company has multiple manufacturing facilities. These are located in Gujarat.

The company has a strong market value and is active in their segment of business. The recently launched IPO Heranba is a competitor of this company.

IPO Details

The Anupam Rasayan India Limited IPO will hit the market for subscription on 12th March, 2021. It is a book built issue and the Face value per share is 10 Rs per share. The price band decided is 553 to 555 Rs. The company’s minimum lot size consists of 27 shares. The issue size for the Anupam Rasayan India Limited IPO is 760 crore Rs. The entire issue is going to be subscribed through Fresh Issue only. There is no Offer for sale involved here. The IPO will be listed on both the exchanges and the Listing date set is 24th March,2021. The registrar for the company is Karvy Fintech Pvt. Ltd.

Tabular Representation of IPO Details

IPO OPENING DATE	12th March, 2021
IPO CLOSING DATE	16th March, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	Rs. 10 per share
IPO price band	553 – 555 Rs per share
LOT SIZE	27 shares
MINIMUM ORDER QUANTITY	27 shares
ISSUE SIZE	760 Crore Rs.
OFFER FOR SALE	NO OFFER FOR SALE
FRESH ISSUE	760 Crore Rs.
LISTING AT	BSE, NSE
LISTING DATE	24th March, 2021

Important Dates

IPO OPENING DATE	12th March, 2021
IPO CLOSING DATE	16th March, 2021
IPO ALLOTMENT DATE	19th March, 2021
REFUNDS	22nd March, 2021
DEMAT A/C CREDITED ON	23rd March, 2021
IPO LISTING DATE	24th March, 2021

The IPO is set to launch on 12th March, 2021. The Anupam Rasayan India Limited IPOs subscription ends on 16th March, 2021. The allotment status would be finalized around 19th March, 2021 and the refunds for those who cannot get the IPO subscription will be initiated on 22nd March, 2021. The DEMAT A/c of customers will be credited with the shares on 23rd March, 2021 and the IPO would be listed on both the changes on 24th March, 2021.

Promoter and Lead Managers

The promoter holding of the company pre-IPO launch is 75.8%. The company has multiple lead managers. They are :

Ambit Private Limited
Axis Capital Limited
IIFL Holdings Limited
JM Financial Consultants Private Limited

Objectives for the IPO

The objectives of Anupam Rasayan India Limited for launching the IPO are :

The company has suffered a lot in previous years and during COVID situation. It has huge amounts of dents laying on it which turn into great interest amount payments. Anupam Rasayan India Limited wants to utilize this money to pay off the dent so that the interest payment goes off.
The company may also utilize this money to meet some general corporate purposes.

Company Financials

Particulars (in Million Rs.)	2019-20	2018-19	2017-18
ASSETS	16640	13225	10012
REVENUE	5393	5209	3491
NET PROFIT	529	502	403

While observing the financial figures it is quite visible that the company is doing extremely well on the asset base. The company is almost increasing its asset base by almost 3000 million Rs every year. This is an extremely great signal when the company is expanding itself. Also the company is producing appropriate and proportionate revenue. The revenue for the company was 3491 Million Rs in 2017-18. This figure increased to 5209 Million rs in 2018-19. This means that the company’s revenue increased by almost 1800 Million Rs. The net profits also increased by 100 Million Rs in 2018-19. Hence the year 2018-19 was a dream for the company in terms of Asset, Revenue and Net profit increase.

The company has a problem in its financial figures when it comes to 2019-2020. The assets have increased to the same place but the revenues are stuck at the same limit. This is not great for the company as it cannot capitalize well on the asset base. The assets increased in 2019-20 maybe under progress and hence they cannot add value to the company’s revenue. Similarly the 2019-20 Net profit is on similar lines to 2018-19. Hence the company surely started the new facilities at the end of the Financial Year. This would have affected the EPS value of the company at that point of time.

Current Financial Position 2020-21

In the 2020 Sept end the company’s asset base was 19190 million Rs. This means that the company’s proportion of increasing the asset base by 3000 Million years continues. The company has also made a good comeback in terms of revenue cycle. The revenues of the company are 5631 million Rs at the middle of the year. This means that the revenues are expected to cross 10000 million Rs this financial year. The net profits reported in Sept 2020 are 480 Million Rs. Hence the net products also show a rise of almost 300 million rs. So maybe by the end of this year the company will start generating income and revenue for the increased asset base.

Product Line

Major segmentation for the company lies in below fields regarding chemical manufacturing :

Life science chemicals
Agrochemicals
Chemicals used into Pharmaceutical industry
Chemicals involving Pigment and dyes
Polymer additive chemicals

Pros

In built R&D department for diversification and modification of products.
More than 35 years of experience in this segment
One of the market leaders in production of agrochemical along with its competitor Heranba.
The manufacturing facilities are having highly advanced technology. Also the facilities are located strategically as per the company reports and its business areas.
The company has a capacity for producing at least 23000 Metric Tons per annum.
The financial sheet shows pretty good numbers barring the 2019-20 year. However the company has an excellent asset base and is continuously working on expanding it.

Cons

The Anupam Rasayan India Limited IPO already had a competitive IPO launch in the beginning of March. The IPO was Heranba. Also the company’s IPO size is 100 Crore rs more than that of Heranba. If the company cannot perform better than Heranba it will give a negative signal to the investors.
The last F.Y. showed red flags as the company was not able to capitalize on the asset base increase. Also in the following year i.e. 2020 the company made some progress but it was not in proportion with its asset base increase (as compared to previous financial years).