Delisted in 2012, this specialty chemicals firm has now filed Rs 3,500-crore IPO papers

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Chemplast Sanmar, which got delisted from BSE, NSE and MSE in 2012, has filed preliminary papers with the market regulator Securities and Exchange Board of India to raise Rs 3,500 crore through an initial share sale (IPO).

The public offer comprises a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale of Rs 2,000 crore, according to draft red herring prospectus (DRHP).

The offer for sale comprises the sale of Rs 1,850 crore by Sanmar Holdings and Rs 150 crore by Sanmar Engineering Services.

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Chennai-based Chemplast Sanmar is a leading specialty chemicals manufacturer with a focus on specialty paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical, and fine chemicals sectors.

The company said it would utilise an aggregate amount of Rs 1,238.25 crore from the net proceeds towards early redemption of the non-convertible debentures (NCDs) issued by it. In addition, funds will also be used for general corporate purposes.

“The early redemption of the NCDs in full will help reduce our outstanding in indebtedness and debt servicing costs, assist us in maintaining a favourable debt to equity ratio and enable utilisation of our internal accruals for further investment in business growth and expansion,” the company said in the draft papers.

“In addition, we believe that our improved leverage ratio, consequent to such redemption of NCDs, will improve our ability to raise debt in the future to fund potential business development opportunities and plans,” it added.

According to draft papers, the company got delisted from BSE, NSE, and MSE with effect from June 25, 2012, June 18, 2012, and June 25, 2012, respectively.