Chemplast Sanmar Ltd IPO

Closed

IPO Subscription Details

  • Open Date 10 Aug
  • Close Date 12 Aug
  • Lot Size 27
  • IPO Size ₹ ₹ 3,850 Cr
  • IPO Price Range ₹ 530 to 541
  • Min Investment ₹ 14,310
  • Listing Exchange NSE, BSE
  • Basis of Allotment 18 Aug
  • Refunds 20 Aug
  • Credit to Demat Account 23 Aug
  • Listing Date 24 Aug

Chemplast Sanmar Ltd IPO Subscription Status

Chemplast Sanmar IPO Subscription Status

Category Subscription Status
Qualified Institutional (QIB) 2.70 Times
Non-Institutional (NII) 1.03 Times
Retail Individual 2.29 Times
Total 2.17 Times

 

Chemplast Sanmar IPO Subscription Details (Day by Day)

 
Date QIB NII Retail Total
Aug 10, 2021 17:00 0.00x 0.03x 0.84x 0.16x
Aug 11, 2021 17:00 0.02x  0.06x  1.29x  0.26x 
Aug 12, 2021 17:00 2.70x 1.03x 2.29x 2.17x

IPO Synopsis

Chemplast Sanmar, one of the renowned Indian manufacturers of specialty chemicals is launching its Initial Public Offer on August 10th. Chemplast IPO will be open for subscription on August 10th & issue closes on August 12th.

Chemplast IPO comprises a pure offer for sale of equity shares of ₹2,550 by its existing shareholders and promoters. 

Chemplast Sanmar IPO market lot size is 27 shares. A retail-individual investor can apply for minimum 1 lot (27 shares or ₹14,310) and a maximum up to 13 lots (351 shares or ₹186,030).

 

Chemplast Sanmar Shareholding Pattern

 

% Shareholding

Pre- IPO(%)

Promoter & Promoter Group

100.0

Public

-

 

Offer Details:

The Offer comprises of the Fresh Issue and an Offer for Sale. The fresh issue is of ₹1,300cr, out of which ₹1,238.25cr would be used for early redemption of NCDs issued by the company and the balance would be used for general corporate purposes. The offer for sale is comprised of ₹2,550cr which would go directly to the selling shareholders.

About Chemplast Sanmar Ltd

Chemplast Sanmar Limited (CSL) is a specialty chemicals manufacturer in India with focus on specialty paste PVC resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. CSL is one of India’s leading manufacturers of specialty paste PVC resin on the basis of installed production capacity, as of December 31, 2020. In addition, CSL is also the third-largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in the South India region, on the basis of installed production capacity as of December 31, 2020 and one of the oldest manufacturers in the chloromethanes market in India.

Chemplast Sanmar - Financials

 

Particulars (in crore)

FY19

FY20

FY21

Revenue from operations

1,254.33

1,257.65

3,798.72

Adj. EBITDA

298.0

254.5

1,127.2

PAT

118.4

46.1

410.2


Competitive Strengths:

Some of the competitive strengths are as follows

Well-positioned to capture favorable industry dynamics:

CSL is the largest manufacturer of specialty paste PVC resin in India, on the basis of installed production capacity as of December 31, 2020, and catered to 45% and44% of the demand for specialty paste PVC resin in India in Financial Years 2020 and 2019, respectively, with 82.0% and 84.0% market share of the specialty paste PVC resin manufactured and sold in India, respectively. CSL’s 100% owned subsidiary CCVL is the second largest manufacturer of suspension PVC resin in India and the largest manufacturer in the South India region, on the basis of installed production capacity as of December 31, 2020. Due to factors such as availability of skilled workers at lower rates compared to developed economies, surge in global demand for food grains, growth in demand for drugs and hygiene products, the revised strategy of major economies to reduce their dependence on a single country and government initiatives to support growth of pharmaceutical sector, the demand for custom manufacturing, chloromethanes, caustic Soda, hydrogen peroxide and suspension PVC resin is likely to increase. CSL is well-positioned to capture these favorable underlying market drivers, both in terms of demand and supply.

Leadership position in an industry with high barriers to entry:

CSL is one of India’s leading manufacturers of specialty paste PVC resin, the third largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide, each in the South India region, and its 100% owned subsidiary CCVL is the second largest manufacturer of suspension PVC resin in India, on the basis of installed production capacity as of December 31, 2020. Given CSL’s scale, replicating such an installed base would require substantial capital investments, time and in-depth knowledge from competitors. The custom manufacturing industry has significant entry barriers, including customer validation and approvals, expectation from customers for process innovation and cost reduction, high quality standards and stringent specifications. Further, the end customers are usually required to register the manufacturer with the regulatory bodies as a supplier of intermediate products or active ingredients. As a result, any change in the manufacturer of the intermediate product or active ingredient may require customers to expend significant time and resources, resulting in switching to new suppliers becoming a lengthy and cumbersome process. 

Well-managed network and Operational excellence:

CSL’s network is well-managed with close quality control of their sites, dedicated IT systems and strong reporting tools, which allow information sharing and internal benchmarking. The company also provide their employees with a range of regular internal trainings across all levels and divisions to foster the development of multiple skill sets, resulting in a more efficient utilization of their workforce. The company’s IT systems play a key role in their operations, helping them to efficiently manage their operations and providing them with significant competitive advantage against smaller manufacturers. The company derives operational efficiencies by centralizing and sharing certain key functions across their businesses with other companies in the Sanmar Group such as finance, legal, information technology, strategy, procurement and human resources.

Risk Factors:

Some of the risk factors are as follows

1.    The company has pledged 26% of the total pre-offer share capital of the company. Further, 25% of the total pre-offer share capital of the company is pledged by the promoter on the occurrence of certain trigger events. 

2.    Intellectual property rights may be inadequately protected against third party infringement and any unauthorized use of their intellectual property including their brand on products that are not manufactured by the company and which are of inferior quality may adversely affect their brand value and consequently their business. 

3.    The company will continue to enter in the related party transactions in the future and cannot assure that they could not have achieved more favorable terms if such transactions had not been entered into with related parties.

How to apply for IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

Contact Details of Chemplast Sanmar Ltd IPO

Contact Information

Address

Chemplast Sanmar Limited
9, Cathedral Road, Chennai, 600086

Phone: + (91) 44 28128500
Email: grd@sanmargroup.com
Website: http://www.chemplastsanmar.com/

Chemplast Sanmar Ltd IPO Register

Address

KFintech Private Limited
   KFintech, Tower-B, Plot No 31 & 32,
   Financial District, Nanakramguda, Gachibowli,
   Hyderabad, Telangana India - 500 032.

Phone: 04067162222, 04079611000
Email: chemplast.ipo@kfintech.com
Website: https://karisma.kfintech.com/

Chemplast Sanmar Ltd IPO Lead Manager

Ambit Private Limited

Axis Capital Limited

BOB Capital Markets Limited

Credit Suisse Securities (India) Private Limited

HDFC Bank Limited

ICICI Securities Limited

IIFL Holdings Limited

IndusInd Bank Limited

Yes Securities (India) Limited