Tag: Anupam Rasayan India IPO

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India’s WPI Inflation Rises to 4.17% in February – Top Indian Market News

India’s WPI inflation rises to 4.17% in February

Wholesale inflation in India jumped to a 27-month high in February 2021, as prices of food, fuel, and power surged. Inflation based on the Wholesale Price Index (WPI) increased to 4.17% in February, compared to 2.03% in January. The WPI Food Index rose to 3.31% in the same period, compared with -0.26% in January. It is estimated that core-WPI inflation will climb to 7-7.5% by May 2021. This indicates that there is increased pressure on India’s economy. The data was released by the Ministry of Commerce and Industry. 

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Adani Ports receives LoI to build West Container Terminal at Colombo Port

A consortium led by Adani Ports and Special Economic Zone Ltd (APSEZ) has received a Letter of Intent (LoI) from the Sri Lankan government to build and run the West Container Terminal (WCT) at Colombo Port. APSEZ will own a majority stake of 51% in the terminal, while local partner John Keels Holding PLC will hold 34%. The remaining 15% will be held by Sri Lanka Ports Authority (SLPA). WCT will have an annual capacity of 2.6 million twenty-foot equivalent units (TEUs). [TEU is used to measure cargo capacity for container ships and container terminals]

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Laxmi Organic Industries IPO subscribed 2.28 times on first day of bidding

The Rs 600-crore initial public offering (IPO) of Laxmi Organic Industries was subscribed 2.28 times on the first day of bidding. The issue received bids for 7.42 crore equity shares against an offer size of 3.25 crore shares. The portion reserved for retail investors was subscribed 4.34 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 49% and that of qualified institutional buyers (QIBs) 1%.

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Finance Minister introduces Bill in Rajya Sabha to allow 74% FDI in insurance

Finance Minister Nirmala Sitharaman, on Monday, introduced a Bill in Rajya Sabha that seeks to amend the Insurance Act in order to increase foreign direct investment (FDI) in the insurance sector from 49% to 74%. On Wednesday (March 10), the Union Cabinet gave its approval for amendments to the Insurance Bill 2021. The increase in FDI limit will help improve life insurance penetration and create more value-based affordable healthcare for all Indians.

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Adani Welspun discovers gas in Mumbai Offshore’s Tapti-Daman sector

Adani Welspun Exploration Ltd (AWEL) announced its first-ever gas discovery in Nelp-VII block in the Tapti-Daman sector of the Mumbai Offshore basin. AWEL is a joint venture (JV) between Adani Group and Welspun Enterprises. The block is spread across 714.6 sq km and AWEL owns 100% interest in it. “This discovery will help take India closer to its target of becoming a gas-based economy,” said Gautam Adani, Chairman of the Adani Group.

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ITC to expand food portfolio by launching milkshakes, cakes: Report

As per a report from BloombergQuint, ITC Limited plans to expand its offerings in categories such as chocolates and staples, as it looks to boost its food portfolio. The report states that the company has also launched three varieties of cakes under the Sunfeast brand at Rs 10 per pack. It has also launched Sunfeast Wonderz Milk (milkshakes) in the range of Rs 25-35. The launches are part of ITC’s efforts to generate Rs 1 lakh crore revenue from its fast-moving consumer goods business.

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Tech Mahindra to acquire majority stake in Perigord Asset Holdings

Tech Mahindra Ltd has announced plans to acquire a 70% stake in Perigord Asset Holdings Ltd, an Ireland-based business process outsourcing (BPO) services company. The majority stake will be acquired directly and indirectly through its wholly-owned subsidiary— Mahindra Engineering Services (Europe) Ltd. The total cost of the acquisition is €21 million (~Rs 181.65 crore). The remaining 30% stake will be acquired over the next 4 years.

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Anupam Rasayan IPO subscribed 3.64 times on second day of bidding

The Rs 760-crore initial public offering (IPO) of Anupam Rasayan India was subscribed 3.64 times on the second day of bidding. The issue received bids for 3.53 crore equity shares against an offer size of 97.01 lakh shares. The portion reserved for retail investors was subscribed 6.6 times and that of employees 93%. The portion set aside for non-institutional investors (NIIs) saw a subscription of 1.39 times and that of qualified institutional buyers (QIBs) 37%.

To know more about the IPO, click here.

Shree Cement starts commercial production at Odisha unit

Shree Cement Limited has commenced commercial production at its new cement grinding unit at Athagarh Tehsil in Cuttack District, Odisha. The unit has a grinding capacity of 3 million tonnes per annum (MTPA). Shree Cement is a leading cement manufacturer based in Kolkata. It also produces and sells power under Shree Power and Shree Mega Power.

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Craftsman Automation IPO subscribed 55% on first day of bidding 

The Rs 823.70-crore initial public offering (IPO) of Craftsman Automation was subscribed 55% on the first day of bidding. The issue received bids for 21.31 lakh equity shares against an offer size of 38.70 lakh shares. The portion reserved for retail investors was subscribed 1.06 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 9%. QIBs are yet to put in bids for the IPO.

To know more about the IPO, click here.

Natco Pharma to launch pheromone-based product to control pests in cotton crop

Natco Pharma Limited will launch its first Green Label Pheromone product for the effective management of Pink Bollworm (PBW) in cotton crop during the Kharif season. The product will be launched under the brand ‘Natmate PBW’. This is the first pheromone-based product made in India that has received approval from the Central Insecticide Board (CIB). The damage to the quality and yield of cotton due to PBW is significant and severely affects the livelihood of small farmers in India.

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Market News Top 10 News

Retail Inflation Rises to 5.03% in February – Top Indian Market News

Retail inflation rises to 5.03% in February; IIP contracts 1.6% in January 

India’s retail inflation rose to its highest level in three months in February amidst a hike in food and fuel prices. Retail inflation (measured by the Consumer Price Index) stood at 5.03% in February, compared to 4.06% in January. Food inflation jumped to 3.87% last month. The increase in crude oil prices could lead to a further rise in inflation.

The Index of Industrial Production (IIP) contracted by 1.6% in January, due to a decline in manufacturing and mining output. The IIP had grown 2.2% in January 2020. The manufacturing sector saw a contraction of 2% last month, while mining output declined by 3.7%. [IIP is an index that tracks manufacturing activity of different sectors of an economy]

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Govt approves 33 API applications under PLI scheme

The government has approved a total of 33 applications with a committed investment of Rs 5,082.65 crore under the Production Linked Incentive (PLI) scheme for Active Pharmaceutical Ingredients (APIs). The disbursal of PLI by the government will be up to a maximum amount of Rs 5,440 crore over a period of 6 years. This will help reduce the import dependence on critical bulk drugs.

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Anupam Rasayan IPO subscribed 1.29 times on first day of bidding

The Rs 760-crore initial public offering (IPO) of Anupam Rasayan India was subscribed 1.29 times on the first day of bidding. The issue received bids for 1.25 crore equity shares against an offer size of 97.01 lakh shares. The portion reserved for retail investors was subscribed 2.58 times and that of employees 30%. The portion set aside for non-institutional investors (NIIs) saw a subscription of 9%.

To know more about the IPO, click here.

SBI Cards to raise Rs 2,000 crore through debentures

SBI Cards and Payment Services Ltd said its Board of Directors has approved the proposal to raise up to Rs 2,000 crore through the issuance of non-convertible debentures (NCDs). The NCDs will bear a coupon rate of 5.9% per annum and will mature on February 23, 2024. It will be listed on the Wholesale Debt Market Segment of the Bombay Stock Exchange (BSE).

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Hatsun Agro Products to set up dairy plant in Andhra Pradesh

The Board of Directors of Hatsun Agro Product has approved the proposal of setting up a dairy plant in Northern Andhra Pradesh. The company had earlier announced plans of setting up a dairy plant in Odisha. Hatsun Agro’s board has also approved the proposal of working with Italy-based SOL Group to explore the possibility of using liquid nitrogen as a refrigerant fuel to transport its milk and milk products.

Tata Group seeks CCI approval to acquire 64.3% stake in BigBasket

Tata Digital Ltd, a wholly-owned unit of Tata Sons, has filed an application with the Competition Commission of Inida (CCI) to acquire a majority stake in online grocery seller- BigBasket. As per the filing, Tata Digital will acquire 64.3% stake of BigBasket from Supermarket Grocery Supplies Pvt Ltd. The deal, if approved, would put Tata in direct competition with Amazon, Walmart’s Flipkart, etc.

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JSPL’s steel output rises 18% YoY to 6.53 lakh tonnes in February

Jindal Steel and Power Ltd (JSPL) reported an 18% YoY increase in its crude steel output to 6.53 lakh tonnes in February 2021. It had produced 5.54 lakh tonnes of steel in February 2020. The company’s sales rose 14% YoY to 5.45 lakh tonnes last month. JSPL’s exports accounted for 26% of the total sales volume.

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Ramco Cements, Bharat Dynamics, PFC declare interim dividends

Ramco Cements Limited said its board has declared an interim dividend of Rs 3 per share for the current financial year (FY 2020-21). The record date for the payment of the interim dividend is March 23, 2021.

Bharat Dynamics Ltd’s board has declared an interim dividend of Rs 6.70 per share for the financial year 2020-21. The company has fixed March 20, 2021, as the record date for the payment of the interim dividend.

Power Finance Corporation (PFC) has declared an interim dividend of Rs 8 per share. The record date has been fixed as March 22, 2021.

PNC Infratech’s subsidiary secures order worth Rs 1,412 crore from NHAI

PNC Infratech announced that its subsidiary, PNC Meerut Haridwar Highways, has secured an order worth Rs 1,412 crore from the National Highways Authority of India (NHAI). The project involves four laning of the Meeru-Naziabad section of NH-119 in the state of Uttar Pradesh.

Board of India Glycols approves transfer of BioEO business to IGL Green Chemicals

The Board of Directors of India Glycols Ltd has approved the transfer of its BioEO (speciality chemicals) business to its wholly-owned subsidiary- IGL Green Chemicals. The company has also formed a 51:49 joint venture (JV) with Swiss chemicals major Clariant AG to manufacture and market renewable ethylene oxide (EO) derivative products. EO derivatives have multiple industrial and consumer applications ranging from freezing agents and coolants for automobile engines to cosmetics.

Read more here.

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Editorial

Anupam Rasayan India IPO: All you need to know

It seems that the companies are in a race to launch their IPOs this year. Without wasting any time, let’s jump into the analysis of another IPO which is going to hit on 12th March 2021. That too, another speciality chemicals company.

About the company

Anupam Rasayan India Limited was incorporated in 1984. It deals in the custom synthesis and manufacturing of speciality chemicals in India. They have two business verticals. Firstly, speciality chemicals related to life science. 

These products belong to the agrochemicals, personal care and pharmaceuticals domain. 95% of its revenues come from these three sectors. Mr Anand S Desai, Dr Kiran C Patel, Ms Mona A Desai, Kiran Pallavi Investments LLC and Rehash Industrial and Resins Chemicals Private Limited are the promoters of the company. 

Currently, Anupam Rasayan holds six manufacturing units. Four of the units are based at sites Sachin, Surat and two of the units are in Jhagadia, Gujarat. The total capacity of the six manufacturing sites is 23,438 MT. They have a diversified customer base across countries like the United States, Europe, Japan, and India. Their long-term vision is to develop into a globally reputed chemical manufacturing company. 

Most of the business operations of the company are export-oriented. Thus, the proximity of their manufacturing sites to Adani Hazira Port gives them an edge by reducing logistics costs. Almost 70% of the revenue for the company comes from international markets.

About the IPO

The IPO of Anupam Rasayan India Limited will open on 12th March 2021 and will close on 16th March 2021. The total issue size of the IPO is Rs 760 crore. The price band of the IPO is Rs 553 – Rs 555 per equity share. You have to apply for a minimum of 27 Shares which is one lot. 

The upper limit to the number of lots you can apply for is 13, which means, 351 shares. The minimum an investor has to pay for this IPO of Anupam Rasayan is Rs 14,985. Similarly, the maximum one can invest in is Rs 1,94,805. Currently, the promoters of the company have 75.80% of the total holdings. The allotment date and listing date for the IPO are 19th Match 2021 and 24th March 2021 respectively. 

Anupam Rasayan India Limited plans to use the net proceeds from the IPO in two ways. Their main aim behind going public is to repay their debt which comes with a huge interest cost. A large part of the proceeds will be used to pay off Rs 556.20 crore of debt. As of December 20, Anupam Rasayan India had a total debt of Rs 814.48 crore. The remaining sum will be used to meet general corporate purposes.

Financial Overview

*30 December 202031 March 202031 March 201931 March 2018
Total Assets1,919.211,664.061,322.501,001.20
Total Revenue563.16539.38520.96349.18
Profit after Tax48.0952.9750.2040.34
(Values in Rs Crore)

After looking at the table, one can easily see that the company has robust financial books in the previous three years. Total assets, revenues and profits, all three of them have continuously increased over the past three years. And, this pattern looks set to continue for this fiscal year as well. In fact, they have taken only three quarters of this year to beat the total assets and revenue numbers of FY20. The profits numbers are also very close and look almost certain to record better than what was last year.

In FY18, the company had a negative cash flow of Rs 20 crore but next year it jumped to the positive Rs 38 crore. In FY20, it skyrocketed to Rs 94 crore. From FY18 to FY20, the EBITDA margin of the company has shown a significant increase from 21% to 25%. One thing to notice is their falling return to equity (ROE). In FY18, FY19 and FY20, Anupam Rasayan recorded an ROE of 11.78%, 10.21% and 9.62% respectively. A falling ROE is a worrying sign for every investor.

Risk Factors

  • Anupam Rasayan has a diverse range of multinational companies. Any inability to maintain the relationships with these MNCs could have an adverse effect on their business. By the end of September 2020, they manufactured products for over 45 companies out of which 15 were MNCs. 
  • Any disruption caused to their manufacturing plants will severely affect their operations and delay the making and delivery of their products.
  • Some of the raw materials used by the company are corrosive and flammable. They require special storage and handling. Any error in this part can increase their cost which will eventually hurt the bottom line of the financial books.
  • Revenues generated from sales to their top 10 customers accounted for 86.65% which is very high. A loss of one or more such customers can lead to huge losses for the company. 
  • Anupam Rasayan doesn’t have long-term agreements with its suppliers. Thus, an increase in raw material due to any reason can severely hamper companies operations.

IPO Details in a Nutshell

IPO DateMarch 12, 2021 – March 16, 2021
Issue TypeBook Built Issue IPO
Face ValueRs 10 per equity share
IPO PriceRs 553 to Rs 555 per equity share
Lot Size27 Shares
Issue SizeRs 760 crore
Listing AtBSE, NSE
IPO Listing DateMarch 24, 2021

Conclusion

In the current market, almost every IPO is proving to be a jackpot for investors. Almost every IPO is providing a few lucky ones with bumper listing gains. Anupam Rasayan might follow the same trend. Though, should you hold it for the long term? I would say it will be better to analyse how the company performs in the next few quarters. 

Their performance will tell us more if we should be a long-term investor or not. As this IPO gives you four days to apply, you should be patient to see how much attraction it is getting in those days. Once you see it being oversubscribed, quickly apply for one lot and hope to get a bumper listing.

Do your own analysis about the company and let us know in the comments section if you find any other interesting information. Anupam Rasayan filed its draft papers last December. You can find it here. Will you be applying for this IPO? Tell us in the comments section below!