Another specialty chemical company ChemPlast is going to enter the Sanmar primary market. The company’s Rs 3,850 crore IPO will open for subscription on August 10 and close on August 12. The price band of its issue has been kept at Rs 530-541. The company was delisted a decade ago but now it is once again trying to list in the stock market.
1300 crore new shares will be issued
Under the IPO, new shares worth Rs 1300 crore will be issued while the promoters will sell their shares worth Rs 2550 crore by bringing an offer for sale. Under the offer for sale, Sanmar Holdings Ltd will sell shares worth Rs 2463 crore, while Sanmar Engineering Services Ltd. Will sell its 86.5 crore equity shares. At present, there is no activity in the gray market regarding this IPO.
Reserve only 10% for retail investors
Investors can apply for Chemplast Sanmar IPO in one lot and multiple of 27 shares. According to the upper band price of the IPO, one lot will cost Rs 14,607. 75% of the IPO is reserved for QIBs (for qualified institutional buyers). 15% reserve has been kept for NII (Non Institutional Investor). Only ten percent of the share has been kept reserved for the retail investor.
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What does the company do?
Chemplast manufactures Sanmar Specialty Chemicals. Its focus is on custom manufacturing for specialty paste PVC resin and starting material. Apart from this, it also manufactures intermediary products for the pharma, agro-chemical and fine chemicals sectors. The company has a debt of Rs 1,187 crore as of December, 2020. Grasim Industries Ltd. in India. DCM Shriram Limited (CM Shriram Limited). Gujarat Alkalies and Reliance Industries Ltd. manufactures specialty paste PVC resins.