Anupam Rasayan fails to dazzle on its stock market debut – shares down by nearly 8% soon after listing
- Shares of Anupam Rasayan listed on the stock exchanges at ₹520 per share, which is over 6% lower than the issue price.
- The company’s initial public offer (IPO) was oversubscribed by 44 times.
- It intends to use a bulk of the proceeds of the IPO towards repaying its debts.
The specialty chemical maker floated its ₹760 crore initial public offer (IPO) earlier this month. The IPO was oversubscribed by 44 times, with non-institutional investors leading the fray.
At the time (10:05 am) of writing, the company’s shares were trading at ₹512 per share, which is down by nearly 8%.
AdvertisementThe Surat-based Anupam Rasayan plans to repay its debts worth ₹556.20 crore from the proceeds of the IPO. Its total debts amount to ₹814.48 crore.
The grey market premium for Anupam Rasayan’s shares was hovering around the ₹65-70 mark, which translates to approximately 12% of the issue price of ₹555. It is worth noting that grey market premium is not an official measure of market premium.
Anupam Rasayan commenced operations in 1984 with conventional products, and now it makes specialty chemicals that involve multi-step synthesis and complex chemistries.
The company’s business is divided in two verticals – life science related to specialty chemicals and other specialty chemicals.
In its IPO note, HDFC Securities stated that Anupam Rasayan’s business and customer-base is diversified across industries, which shields it from the market uncertainties.
“Its customers are typically engaged in various industries, including agrochemicals, personal care, pharmaceuticals, specialty pigments and dyes, and polymer additives, and spread across various geographies, which helps it mitigate risks resulting from customer, industry and geographic concentration,” said HDFC Securities in its report.
The ₹760-crore Anupam Rasayan IPO has received a mixed response from brokerages — here's what works for it and what doesn't
Suryoday Small Finance Bank IPO allotment live – how to check allotment, listing date and more
Adani Green Energy shares hit upper circuit after the company adds two renewable energy projects to its kitty
Popular on BI
- Best 2K ultrawide monitors for gaming and streaming
- Best budget smartphones for gaming
- Best gaming keyboards with macro keys
- Best ergonomic mice for long working hours
- Best RGB mouse pads for your gaming setup