Anupam Rasayan, a specialty chemicals manufacturer based in Gujarat India, has filed its draft red herring prospectus with the capital market regulator of India, SEBI for Rs 760 crore ($103.3 million) initial public offering (IPO).
Anupam Rasayan intends to use the proceeds mainly for debt repayment. The company has decided to reserve a portion for its employees and may consider a discount for eligible staff.
The Gujarat-based company commenced operations in 1984 with conventional products and has over the years evolved into custom synthesis and manufacturing of life sciences-related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies.
The company has two distinct business verticals—life sciences specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals. The second vertical is other specialty chemicals, comprising pigment and dyes and polymer additives.
The company’s major clients include Syngenta Asia Pacific, Sumitomo Chemical Company and UPL Limited.
In FY20 and in the six months ended September 2020, revenues from life sciences vertical accounted for 95.37% and 92.48%, respectively, of revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 7.52%, respectively, during the periods.
It has six multi-purpose manufacturing facilities in Gujarat with a combined aggregate installed capacity of around 23,396 tonnes, of which 6,726 tonnes was added in March 2020.
Axis Capital, Ambit, IIFL Securities and JM Financial are the lead managers to the issue.