Specialty chemicals company Anupam Rasayan files for IPO to raise Rs 760 crore

The company intends to use its issue proceeds mainly for debt repayment.

Speciality chemicals company Anupam Rasayan has filed its draft red herring prospectus with the capital market regulator for a Rs 760-crore initial public offering (IPO).

The company intends to use the proceeds mainly for debt repayment. Anupam Rasayan has decided to reserve a portion for its employees and may consider a discount for eligible staff.

The company, in consultation with the book running lead managers, may consider a further issue of equity shares, including by way of a private placement of shares of Rs 100 crore prior to the filing of the red herring prospectus. If the pre-IPO placement is completed, then there would be reduction in the issue size.

The Gujarat-based compnay commenced operations in 1984 with conventional products and has over the years evolved into custom synthesis and manufacturing of life sciences-related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies.

The company has two distinct business verticals—life sciences specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals. The second vertical is other specialty chemicals, comprising pigment and dyes and polymer additives.

In FY20 and in the six months ended September 2020, revenues from life sciences vertical accounted for 95.37 percent and 92.48 percent, respectively, of revenue from operations, while revenue from other specialty chemicals accounted for 4.63 percent and 7.52 percent, respectively, during the periods.

Axis Capital, Ambit, IIFL Securities and JM Financial are the lead managers to the issue.