Chemplast Sanmar
IPO Size
`3,850 Cr
Price Band
`530-541 Per Share
Minimum Lot Size
27 Share
Face Value
`5 Per Share
Employee Discount
NA
Retail Allocation
10%
Issue Open Date
10 Aug, 2021
Issue Close Date
12 Aug, 2021
Listing Date
IPO Size
Price Band
Minimum Lot Size
Face Value
Employee Discount
Retail Allocation
Issue Open Date
Issue Close Date
Listing Date
About the Company:
Chemplast Sanmar Limited is a specialty chemicals manufacturer in India with focus on specialty paste PVC resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. CSL is one of India’s leading manufacturers of specialty paste PVC resin on the basis of installed production capacity, as of December 31, 2020. In addition, the specialty player is also the third largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in the South India region, on the basis of installed production capacity as of December 31, 2020 and one of the oldest manufacturers in the chloromethanes market in India. Pursuant to the CCVL Acquisition, the company has acquired 100.0% equity interest in CCVL that is the second largest manufacturer of suspension PVC resin in India and the largest manufacturer in the South India region, on the basis of installed production capacity as of December 31, 2020. The product has high barriers to entry and limited competition is expected to benefit existing manufacturers of specialty paste PVC resin in India in the medium term and the demand for specialty paste PVC resin is expected to grow at a CAGR of 6% to 8% between FY 2022 and 2025.
Outstanding Litigation:
| S.No. | 1 - Company | 2 - Promoters | 3 - Directors | |||
| Entity Name | By the Company | Against the Company | By the Promoters | Against the Promoters | By the Subsidiaries | Against the Subsidiaries |
| Criminal cases | 1 | - | - | - | - | 2 |
| Material civil cases | - | 1 | - | - | - | - |
| Taxation matters | - | 256 | - | - | - | - |
| Regulatory Procedings | - | 31 | - | - | - | - |
| Amt. (In Million Rs.) | 0.33 | 1,662.86 | - | - | - | Non-Quantifiable |
Financial Statements:
| Income Statement (In Millions) | FY21 | FY20 | FY19 | |
| Gross Operating Income | 38151.08 | 12655.1 | 12667.74 | |
| Cost of Employee & Inventory | 22367.05 | 5041.82 | 4779.42 | |
| Other Expenses | 6005.59 | 4411.54 | 4553.60 | |
| EBITDA | 9778.44 | 3201.74 | 3334.72 | |
| Depreciation | 1309.83 | 873.61 | 563.76 | |
| Interest | 4333.62 | 954.57 | 482.75 | |
| Profit Before Tax, Exceptional items and JV | 4134.99 | 1373.56 | 2288.21 | |
| Share of restated profit/loss from joint ventures | 3315.91 | 656.54 | 354.22 | |
| Profit on investments in Joint ventures | 4809.67 | |||
| Profit Before Tax and exceptional items | 5628.75 | 717.02 | 1933.99 | |
| Exceptional Items | 156.84 | |||
| Profit before Tax | 5471.91 | 717.02 | 1933.99 | |
| Tax | 1369.47 | 255.77 | 749.35 | |
| Profit After Tax | 4102.44 | 461.25 | 1184.64 | |
The promoter of the company is Sanmar Holdings.
The company will face tough competition from PI Industries, SRF Limited, Finolex Ltd. and Navin Fluorine Ltd.
The object of the Offer for Sale is to allow Sanmar Holdings Limited and others to sell an aggregate of up to 47.13 million equity Shares held by them amounting at Rs. 2,550 cr. The company will not receive any proceeds from the Offer for Sale.
The company has planned to raise fresh capital comprising an aggregate of 2,40,29,574 equity shares having Face Value ₹10 aggregating up to Rs. 1,300 Cr at the upper price band of Rs. 541. Out of the net proceeds an amount of Rs. 1,238.25 cr. will be utilized for early redemption of Non-Convertible Debentures issued by the Company while rest will be utilized for general corporate purpose.