Chemplast Sanmar, the Sanmar Group’s flagship firm is a leading company of PVC resins, caustic soda, chlorochemicals, refrigerant gas, and commercial salts with a 50 background. Chemplast Sanmar IPO will hit Market on 10 August 2021.
Mettur, Berigai, Panruti, and Vedaranyam in Tamil Nadu, and Karaikal in the Union Territory of Puducherry, contain the production plants.
Table of Contents
Products
Chemplast’s chlorochemicals unit produces a vast variety of goods using a highly optimized product method as a result of the organization’s backward integration.
The salt areas of the chemoplast provide the salt needed for chlorine production to the Vedaranyam. Chemplast’s own power plant supports the electro-intensive electrolysis process that produces chlorine.
All of this combines to make Chemplast one of the nation’s most integrated chemical facilities with a closed production loop. PVC Resins, Caustic Soda / Chlorine, Chlorinated Solvents, and Refrigerant Gases are the four main material groups.
Sanmar Specialty Chemicals
Sanmar Specialty Chemicals (SSC), based in Berigai, Tamil Nadu, 60 kilometers from Bangalore, produces a variety of Muli-Costomer materials using cyanation, hydrogenation, and high-efficiency calibration technologies.
Chemplast has led the field in terms of feedstock selection and manufacturing processes, as well as reliable, environmentally friendly practices.
The continuous implementation of environmentally sustainable manufacturing methods has resulted in a decline in the use of precious natural resources.
Revenue
The corporation is the biggest paste PVC supplier in the india. The organisation has a revenue of over $1 billion.
As per a 31 July note by Brickworks Ratings, the firm posted an income of 1,259.31 crore for FY20, slightly higher than the income of 1,252.69 crore announced in the previous fiscal.
In fiscal year 2019-20, profit dropped to 98.74 crore from 187.21 crore the previous year.
Demand
Paste PVC demand in the nation is strong, rising at a rate of 10% to 13% per year, thanks to growth in a variety of end-use divisions, especially the artificial leather sector.
Chemplast Sanmar IPO
Chemplast Sanmar Limited, headquartered in Chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 3850 crore on 30 April 2021.
The Offer includes a fresh equity of Rs. 1300 crore and an offer to sell(OFS) up to 2550 crore value equity shares of Chemplast Sanmar limited with face value Rs 5 each by the promoters.
They got approval from Securities and Exchange Board of India(SEBI) on 05 July, 2021 to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 4142.21 | 4107.54 | 3801.56 | 2626.05 | |
| Total Revenue | 877.56 | 1265.51 | 1266.77 | 3152.58 | |
| Profit After Tax | 16.14 | 46.13 | 118.46 | 248.54 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 2.04 | 2.04 | 3 |
| Financial Year 2019 | 4.53 | 4.53 | 2 |
| Financial Year 2018 | 15.53 | 15.53 | 1 |
| Weighted Average | 5.12 | 5.12 | |
| (9 months) Dec. 31, 2020 | 1.20 | 1.20 | – |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the Offer
We feel the following are some of the basic elements that contribute into determining the Offer Price:
- Firm have a strong market position in Specialty chemicals.
- Well-positioned to take advantage of favourable industry trends.
- A position of leadership in an industry with strong entry barriers.
- Operations that are vertically integrated.
- High-quality production plants with a significant focus on environmental responsibility.
- Outstanding operational performance.
- Seasoned leadership team and strong background.
Chemplast Sanmar IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | PI Industries Limited | 77.58 |
| 2 | SRF Limited | 34.92 |
| 3 | Finolex Industries | 28.03 |
| 4 | Navin Fluorine International Limited | 40.55 |
Chemplast Sanmar IPO Details
| IPO Opening Date | 10 August 2021 |
| IPO Closing Date | 12 August 2021 |
| Issue Type | Book Built |
| Face Value | 5 per share |
| IPO Price | 530 to 541 per equity share |
| Market Lot | 27 |
| Min Order Quantity | 27 |
| Listing At | BSE, NSE |
| Issue Size | 3850 Crore |
| Fresh Issue | 1300 Crore |
| Offer for Sale | 2550 Crore |
Chemplast Sanmar IPO Tentative Date
Chemplast Sanmar IPO opening date is 10 August 2021, and the closing date is 12 August 2021. The issue may list on 24 August 2021.
| IPO Open Date | 10 August 2021 |
| IPO Close Date | 12 August 2021 |
| Basis of Allotment Date | 17 August 2021 |
| Initiation of Refunds | 18 August 2021 |
| Credit of Shares to Demat Account | 20 August 2021 |
| IPO Listing Date | 24 August 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
Chemplast Sanmar IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Chemplast Sanmar IPO.
Chemplast Sanmar IPO gmp
Chemplast Sanmar IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 23 August 2021 | 0 | 0 | 0 |
| 22 August 2021 | 0 | 0 | 0 |
| 21 August 2021 | 0 | 0 | 0 |
| 20 August 2021 | 1 | 1600 | 150 |
| 19 August 2021 | 4 | 2500 | 250 |
| 18 August 2021 | 5 | 1200 | 100 |
| 17 August 2021 | 9 | 2400 | 200 |
| 16 August 2021 | 4 | 3500 | 400 |
| 15 August 2021 | 7 | 2800 | 300 |
| 14 August 2021 | 5 | 1900 | 250 |
| 13 August 2021 | 2 | 2600 | 350 |
| 12 August 2021 | 0 | 0 | 0 |
| 11 August 2021 | 26 | 2300 | 200 |
| 10 August 2021 | 31 | 3500 | 300 |
| 09 August 2021 | 28 | 2500 | 250 |
| 08 August 2021 | 20 | 1200 | 150 |
| 07 August 2021 | No Trade | No Trade | No Trade |
| 06 August 2021 | No Trade | No Trade | No Trade |
| 05 August 2021 | No Trade | No Trade | No Trade |
| 04 August 2021 | No Trade | No Trade | No Trade |
Check Out The GMP Of other IPOs
Chemplast Sanmar IPO Review
You can avoid this IPO for listing gain & as well as long term as well. There is no worth of holding this company as better companies with better valuations are available in the market.
Chemplast Sanmar IPO Risk
- For their company, the Coronavirus pandemic (COVID-19) has had a number of unfavorable effects.
- Production facilities that experience unplanned slowdowns or shutdowns may have a negative impact on their business.
- Any negative developments in their client relationships could have a negative impact on their firm.
- Their inability to effectively forecast product demand and manage inventories may have a negative impact on their firm.
- A lack of electricity, fuel, or water, as well as a rise in fuel prices, could have a negative impact on their business.
- They have considerable capital expenditures planned, and these investments may not generate the expected results.
Other Threats
- This Draft Red Herring Prospectus’ Pro Forma Financial Information may not fully represent their future financial status.
- CCVL’s business is subject to seasonal and cyclical changes, which may cause volatility in their operating performance.
- Their intellectual property rights may not be sufficiently secured from infringement by third parties.
- Failure to protect their customers’ sensitive information could have a negative impact on their business.
- Changes in technology may make our existing technologies obsolete or necessitate a significant capital investment.
- Their Company, CCVL, and their Directors are all involved in ongoing legal disputes.
Chemplast Sanmar IPO Brokerage views
- Yes Securities : Avoid for listing gain
- Choice Brokering: Avoid for listing gain
- Axis Securities: Avoid for listing gain
- IIFL Securities: Avoid for listing gain
- Trade swift: Avoid for listing gain
- Anand Rathi : Avoid for listing gain
- ICICI Securities: Avoid for listing gain
Chemplast Sanmar IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 10 August 2021 | 1 | 0.00 | 0.03 | 0.85 | N/A | 0.16 |
| 11 August 2021 | 2 | 0.02 | 0.06 | 1.29 | N/A | 0.26 |
| 12 August 2021 | 3 | 2.70 | 1.03 | 2.29 | N/A | 2.17 |
Promoters
- Sanmar Holdings Limited
Promoter Holding
| Pre Issue Share Holding | 98.81% |
| Post Issue Share Holding |
Chemplast Sanmar IPO Prospectus
Contact Details
Chemplast Sanmar Limited
9, Cathedral Road,
Chennai – 600 086, Tamil Nadu, India.
Tel. : + 91 44 2812 8500
Fax. : + 91 44 2811 1902
E-mail : [email protected]
Website: http://www.chemplastsanmar.com/
Registrar
KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- ICICI Securities Limited
- SBI Capital Markets Limited
- Axis Capital Limited
- Credit Suisse Securities (India) Private Limited
- IIFL Securities Limited
- Ambit Private Limited
- BOB Capital Markets Limited
- HDFC Bank Limited
- IndusInd Bank Limited
- YES Securities (India) Limited
We hope we are able to answer all your questions about Chemplast Sanmar IPO. If you don’t have a Demat, account open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Chemplast Sanmar IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Chemplast Sanmar IPO applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Chemplast Sanmar IPO Opening Date?
Chemplast Sanmar IPO will open on 10 August 2021.
Chemplast Sanmar IPO Listing Date?
Chemplast Sanmar IPO will list on 24 August 2021.
Chemplast Sanmar IPO GMP Today?
Chemplast Sanmar IPO Grey Market Premium is INR 0.
Chemplast Sanmar IPO Allotment Date?
Chemplast Sanmar IPO basis of allotment will be on 17 August 2021.
Lot size for Chemplast Sanmar IPO?
Lot size for IPO is 27.
