Chemplast Sanmar IPO GMP, Share Price, Allotment Status, Dates can be checked here. Get the Chemplast Sanmar IPO GMP and other details from here. Tuesday, August 10 is the first day of subscriptions for Sanmar Chemplast’s IPO. Tamil Nadu is home to four manufacturing facilities for the company. And in this article, we will cover everything about Chemplast Sanmar IPO GMP, Share Price, Allotment Dates etc.
Chemplast Sanmar IPO
In its history, Chemplast Sanmar has raised cash from primary market transactions once. When after being delisted from stock exchanges almost a decade ago, in June 2012, the company had gone into bankruptcy. With the largest installed production capacity in India, it is a leading manufacturer of specialty paste PVC resins. Approximately Rs 3,850 crore is expected to be raised from the primary market by the company.
Chemplast Sanmar, a manufacturer of specialty chemicals in India, was founded in 1985. PVC resin, speciality pastes, and starter materials are mainly manufactured by the company. Other chemistries produced by the company include refrigerator gas, caustic soda etc.
Chemplast Sanmar IPO GMP
For the three-day period of the public offering, the company will open its shares for public sale on August 10. Subscriptions and trading will be closed on August 12.
Price of the IPO
The company plans to offer shares for sale in a public offering worth Rs 3,850 crore. An issue of Rs 1,300 crore was made by the company, while the promoters offered to sell Rs 2,463.4 crore.
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IPO Issue Size
A total of Rs 3,850 crore will be raised in the Chemplast Sanmar IPO. A fresh issue of Rs 1,300 crore also forms part of the public offering.
A sale offer of Rs 2,500 has also been made. Equity shares are valued at Rs 5 each.
Objectives for Issue
To redeem its non-convertible debentures early and to conduct general corporate operations, the company will use net proceeds from this fresh issue.
From the offer for sale, no money will be received by the company because all funds will go to shareholders who are selling their shares.
Chemplast Sanmar IPO Allotment
The public issue has set August 18th as the basis for allocation. Meanwhile, an August 24 listing date is tentative, yet to be confirmed.
On August 20, refunds will be issued to unqualified bidders. On August 23, the shares will be credited to the bidders’ Demat accounts.
Chemplast Sanmar IPO Lot Size
- A minimum application amount of Rs 14,607 is required for the IPO with a minimum lot size of 27 shares.
- At the upper end, the maximum amount of what can be applied is Rs 189,891, which caps the lot size at 351 shares.
- Retail investors are allowed to request up to 13 lots at the maximum lot size.
Chemplast Sanmar IPO Category Reservation
A qualified institutional buyer holds a reservation of 75 percent and a non-institutional investor holds a reservation of 15 percent.
Ten percent of the issue has been reserved for retail.
Company Work Profile
Chemplast is an Indian manufacturer of specialty chemicals. This company manufactures specialty PVC paste resins for use in pharmaceuticals, agrochemicals, and fine chemicals, as well as custom synthetic intermediates and starting materials.
As per its installed production capacity, it is one of India’s most prominent paste PVC resin manufacturers.
Moreover, it is also one of the largest producers of caustic soda, and its hydrogen peroxide production quantity is also high.
Moreover, it is one of the oldest and first chloromethane manufacturers in India.
The company acquired 100 percent ownership of CCVL. Suspension PVC resin is the company’s second biggest product line.
In terms of installed production capacity, it is the largest manufacturer in South India.
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As of fiscal 2021, Chemplast Sanmar had a negative net worth. Chemplast’s losses primarily result from restructuring, not because of operational or fund losses.
A total of 12.4 billion rs of non-convertible debentures were issued in December 2019 with interest of 17.5% per annum.
In addition to investing in SGIL, the income was repaid to its promoter SHL. Rest of the money was devoted to paying off its debt.
SGIL has redeemed the company’s investments in 2021. Another investment of $9.8 billion was made in a joint venture along with a group company.
It has generated net profits of 1.2 billion, 461.3 million, and 4.1 billion over the last three financial years.
Strengths of the Company
- The company has a good chance of taking advantage of industry trends.
- It is a leader in a highly competitive industry.
- Its manufacturing operations are vertically integrated.
- The company is committed to sustainability while maintaining quality manufacturing facilities.
- A total of Rs 256 crore is planned to be invested by the end of FY24. For the development of a facility to manufacture specialty paste PVC resins.
In FY20, Rs 113 crore was invested in machinery, plants, and technology. It is well placed to take advantage of future market growth with its hydrogen peroxide plant.
As a result, it will maintain its position as an industry leader.
A strong parent family and a highly qualified team with professional industry experience make it a reputable company. The company has also demonstrated excellence in operations.
The company will finalize the IPO share distribution on August 18 after closing the issue on August 12. As of August 20, refunds will be initiated for investors who are ineligible.
Shares will be available to eligible investors in their Demat accounts by August 23rd. From August 24th, shares will be traded. An equity share listing will be proposed on NSE and BSE.
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