Chemspec Chemicals is a global leader in essential components for FMCG constituents in skin and hair care items, as well as intermediates for medicinal APIs in anti-hypertension medicines. Chemspec Chemicals IPO Will get the market in September 2021.
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About Chemspec Chemicals Limited
Across Chemspec Chemicals product portfolio they are among the top four producers in the world. They are among the world’s major UV absorber producers, as well as one of the top two worldwide makers of personal care chemicals for skin and hair care.
They are also India’s biggest manufacturer of ‘piroctone olamine’ and the globe’s biggest supplier of ‘chemilide’ (an anti-bacterial component), with a market share of around 70%.
Production Facilities
They produce their products at a plant in Taloja, Maharashtra. It has been audited and endorsed by the United States Food and Drug Administration (“US FDA”).
It making them one of the few international corporations in the pharmaceutical intermediates and FMCG sections to be certified with the US FDA.
This has assisted them expand their reach and company with major Global brands.
Footprints
They have considerably grown their business and scope of operations since their inception over 40 years ago.
Their worldwide supply chain was stretched over 43 nations in North America, Europe, the APAC region (including Japan), the Middle East, and Africa in the previous 3 financial years.
Products
They produce UV filters, which are utilized as the principal ingredient in sunscreens, vitamins for skin care, fairness and anti-ageing lotions, and ingredients for antibacterial soaps and handwashes within our FMCG division.
They are India’s biggest manufacturer and one of the top three global producers of UV filters (Source: Frost & Sullivan Report). They also make compounds that are utilised in anti-dandruff shampoos.
“Piroctone olamine,” for example, has antifungal qualities and can assist with erythema, scaling, as well as folliculitis spinulosa decalvans (“FSD”).
Growth
Their technical expertise and long-standing client strong ties as well as the strict governmental clearances necessary to run this company, function as an entrance hurdle.
Barriers to entry are also present. It Include the high cost of product development, the complexities of production chemistry, the time and expense of technological innovations, and the lengthy supplier certification procedure.
They’ve earned the trust of 136 customers over the years, and by working closely with them, they’ve been able to innovate and create technologies that may be used to end goods to improve product quality.
Chemspec Chemicals IPO
Chemspec Chemicals, headquartered in Navi Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 700 crore on 14 July, 2021.
They planned to collect INR 700 cr via its initial public offering (IPO). There will be no fresh issue & OFS of 700 cr. from existing promoters mentioned in the drhp of the company.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 257.42 | 2,54.49 | 242.64 | ||
| Total Revenue | 510.33 | 607.01 | 335.26 | ||
| Profit After Tax | 81.08 | 60.74 | 5.15 | ||
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 16.11 | 16.11 | 3 |
| Financial Year 2020 | 10.40 | 10.40 | 2 |
| Financial Year 2019 | 0.79 | 0.79 | 1 |
| Weighted Average | 11.65 | 11.65 |
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
The following are some of the qualitative factors that go into determining the Offer Price:
- Leadership in a sector with a strong entry barrier.
- Long-standing associations with a top tier client and supplier base throughout geographies.
- Consistent R&D and method enhancement to drive research and development.
- Diverse portfolio of operationally essential products throughout sectors.
- Advanced manufacturing plant recognized with the US Food and Drug Administration, with a significant concentrate on the climate, stability, wellness, and quality.
Chemspec Chemicals IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | Galaxy Surfactants Limited | 36.89 |
| 2 | Vinati Organics Limited | 77.16 |
| 3 | Aarti Industries Limited | 28.66 |
| 4 | SRF Limited | 36.89 |
| 5 | Fine Organic Industries Limited | 78.78 |
| 6 | PI Industries Limited | 59.95 |
| 7 | Navin Fluorine International Limited | 74.14 |
| 8 | Atul Limited | 41.99 |
Chemspec Chemicals IPO Details
| IPO Opening Date | September 2021 |
| IPO Closing Date | September 2021 |
| Issue Type | Book Built |
| Face Value | 2 per share |
| IPO Price | 0 per equity share |
| Market Lot | 0 |
| Min Order Quantity | 0 |
| Listing At | BSE, NSE |
| Issue Size | 700 Cr. |
| Fresh Issue | 0 Cr. |
| Offer for Sale | 700 Cr. |
Chemspec Chemicals IPO Date
Chemspec Chemicals IPO opening date is September 2021, and the closing date September 2021. The issue may list in September 2021.
| IPO Open Date | September 2021 |
| IPO Close Date | September 2021 |
| Basis of Allotment Date | September 2021 |
| Initiation of Refunds | September 2021 |
| Credit of Shares to Demat Account | September 2021 |
| IPO Listing Date | September 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
Chemspec Chemicals 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 Chemspec Chemicals IPO.
Chemspec Chemicals IPO GMP
Chemspec Chemicals IPO Grey Market Premium is INR 0.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
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| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 |
Chemspec Chemicals IPO Review
Chemspec Chemicals IPO Review will depend on Price band. Once the price band will be issued we will update the Review for this IPO.
Chemspec Chemicals IPO Risk
- Their business relies on their manufacturing facilities, and their production procedures expose them to significant concerns. Any unexpected, unanticipated, or long-term interruption of their manufacturing activities might have a significant negative impact on their whole manufacturing operations.
- Their company’s success is dependent on the success of their clients’ goods with end users. Any decrease in demand for the final products that their specialty chemicals are utilised in would have a significant negative impact on their company.
- The COVID-19 outbreak’s continued impact might have a severe affect on their operations and ultimately affect their revenue.
Other Threats
- Reduced efficiency of our items by industries to whom they provide might have a negative impact on their company.
- They rely on a small number of clients for a substantial amount of their income, and the loss of one or more of them, or a decrease in their demand for their goods, might have a negative impact on the company.
- Any rise in the cost of their raw materials or other imports, or a shortage of the raw materials, might have a negative impact on the price and supply of the goods, as well as the company.
- Most of their vendors and clients do not have long-term contracts with them and a drop in their desire for their products might hurt their firm.
Chemspec Chemicals IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Chemspec Chemicals IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| September 2021 | 1 | |||||
| September 2021 | 2 | |||||
| September 2021 | 3 |
Promoters
- Jayant Vora
- Mitul Vora
- Rushabh Vora
- Bhaichand Amoluk Consultancy Services LLP
Promoter’s Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
Chemspec Chemicals IPO Prospectus
Contact Details
Chemspec Chemicals Limited
Plot No. 3-C, MIDC Taloja, Tal – Panvel, District – Raigad,
Navi Mumbai – 410 208, Maharashtra, India
Tel.: +91 22 2740 1932
E-mail : [email protected]
Website: www.chemspec.co.in/
Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Lead Manager(s)
- Axis Capital Limited
- JM Financial Limited
We hope we are able to answer all your questions about Chemspec Chemicals IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
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:
Chemspec Chemicals 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 Chemspec Chemicals 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
Chemspec Chemicals IPO Opening Date?
Chemspec Chemicals IPO will open in September 2021.
Chemspec Chemicals IPO Listing Date?
Chemspec Chemicals IPO will list in September 2021.
Chemspec Chemicals IPO GMP Today?
Chemspec Chemicals IPO Grey Market Premium is INR 0.
Chemspec Chemicals IPO Allotment Date?
Chemspec Chemicals IPO basis of allotment will be in September 2021.
Lot size for Chemspec Chemicals IPO?
Lot size for IPO is 0.
