Anupam Rasayan shares made a faint itemizing on the inventory exchanges in the present day, falling prey to the weak spot on Dalal Avenue. Anupam Rasayan shares opened at Rs 534.7 per share, down Rs 20 apiece or 3.66% from the IPO worth of Rs 555 per share. On itemizing, Anupam Rasayan had a market capitalization of Rs 5,342 crore. The Rs 760-crore IPO of Anupam Rasayan, a Specialty Chemical compounds agency, was subscribed 44 occasions by traders earlier this month. Upon itemizing Anupam Rasayn turned the eleventh inventory to debut on the bourses in 2021.
Anupam Rasayan is among the main corporations concerned within the customized synthesis & manufacturing of specialty chemical compounds in India. The corporate boasts a robust and long-term relationship with diversified clients throughout geographies. The constant monetary monitor report of the corporate provides to its deserves. By means of the problem, the promoter stake within the firm has been trimmed to 65.41% towards 75.8% pre-issue. Public shareholding now will increase to 34.59% towards 24.2% earlier.
The IPO was extremely rated by analysts on Dalal Avenue, nonetheless, some have deemed it to be aggressively priced. “At greater worth band of Rs 555, Anupam Rasayan is demanding a TTM P/E a number of of 95.2x (to its restated TTM EPS of Rs 5.8), which is considerably greater than the peer common of 33x. Thus the problem appears to be aggressively priced,” mentioned analysts at Selection Broking who had given the problem a “Subscribe for long-term” score. Business peer Navin Fluorine is buying and selling at a P/E of 29.6x and PI Industries is at 51.4x.
Product portfolio of Anupam Rasayan has steadily picked up over time. In 2015 the corporate had 15 product choices which had elevated to 41 on the finish of final 12 months. “Its merchandise are offered to multinational companies to be used as components, elements or intermediates that impart specific traits to the shopper’s end-use merchandise,” mentioned analysts at Marwadi Monetary Companies. Anupam Rasayan’s buyer base has elevated from 34 in 2015 to 53 in December final 12 months.
The agency operates in a extremely working capital intensive enterprise, which Selection Broking sees as a threat. Different dangers aligned with the corporate embody unsustainable profitability margins, intense competitors, and unfavourable foreign exchange actions. Marwadi Monetary Companies highlighted that the corporate is very depending on choose few clients, which is one other threat. “The corporate is very depending on few of its clients because the income generated from gross sales to prime 10 clients represented 86.65% and 84.01% of income from operations in Fiscal 2020 and within the 9 months ended December 31, 2020, respectively,” they mentioned.