Chemplast Sanmar announced that it has redeemed, on 31st August 2021, the entire outstanding non-convertible debentures (NCDs) that were issued in December 2019 by the company.
The redemption of these NCDs amounting to Rs 1238.25 crores ($169.5 million), which was part of the objects of the primary issue, was made using the net proceeds of fresh issue of equity shares of the Company (IPO) made in August 2021.
The company further announced that using the net proceeds of the offer-for-sale (OFS), received by the selling shareholders Sanmar Holdings and Sanmar Engineering Services (SESL), the term loan availed by SESL from HDFC has been fully repaid.
Consequently, the security in respect of this loan, including the pledge over the equity shares of Chemplast Cuddalore Vinyls (CCVL), the wholly-owned subsidiary of Chemplast, has been fully released on 31st August 2021 by the Security Trustee. With this, there is no pledge over the shares of CCVL held by the company and the shares of Chemplast Sanmar held by the promoters, the company said.
Chemplast Sanmar had made a debut on the bourses as it listed at Rs 525 ($71.9), 1% below its issue price on the bombay stock exchange.
The company is engaged in the manufacturing of specialty paste PVC resin, starting materials, and intermediates for agro-chemical, pharmaceuticals, agro-chemical, and fine chemical sectors. It also produces other types of chemicals such as caustic soda, chlorochemicals, hydrogen peroxide, refrigerant gas, and industrial salt.