Chemplast Sanmar IPO to open today: All you need to know
Chennai-based specialty chemical maker Chemplast Sanmar Limited will open its three-day initial public offering (IPO) for subscription from Tuesday. On Monday, the firm said in a statement that it has collected ₹1732 crore from anchor investors ahead of its initial sale of shares.
Here’s all you need to know about the IPO before it opens:
(1.) The IPO, which will end on August 12, is worth ₹3850 crore and comprises fresh issuance of equity shares worth ₹1300 crore, as well as ₹2550 crore offer for sale (OFS). The OFS comprises the sale of ₹2463.44 crore by Sanmar Holdings Limited and ₹86.56 crore by Sanmar Engineering Services Limited.
(2.) Each share has a price band of ₹530-541 and, with 32,024,029 equity shares to be allocated to anchor investors, the transactions values at ₹1732.5 crore, as per a circular uploaded on the Bombay Stock Exchange (BSE).
(3.) Investors are allowed to bid for a minimum of 27 equity shares after which they can bid in multiples of 27 equity shares. Also, 75% of the issue size is reserved for quality institutional buyers (QIB), while 15% and 10% are reserved for non-institutional investors and retail investors respectively.
(4.) The company will utilise ₹1238.25 crore from the net proceeds towards an early of the non-convertible debentures (NCD) issued by it. The early redemption, Chemplast Sanmar said, will help it reduce its outstanding indebtedness and debt servicing costs.
(5.) ICICI Securities, Axis Capital, Credit Suisse Securities, IIFL Securities, Ambit, BOB Capital Markets, HDFC Bank, IndusInd Bank and Yes Securities are the merchant bankers to the issue.
(6.) Chemplast Sanmar’s keeps special focus on specialty paste polyvinyl chloride (PVC) resin, custom manufacturing of starting materials and intermediaries for sectors such as pharma, agro-chemical and fine chemicals.
(With PTI inputs