Chemplast Sanmar shares list at Rs 550 apiece; about 2% premium

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Chemplast Sanmar made a muted debut on the bourses. Shares of the company opened for trading at a  premium of 1.66% over the issue price of Rs 541 per share. The stock opened at Rs 550 apiece on the National Stock Exchange (NSE) while on the BSE it got listed at Rs 525 a discount of Rs 16 or 2.96%.

The public issue of specialty chemicals maker Chemplast Sanmar got oversubscribed more than 2.17 times on the last day of the bidding process. The quota for retail investors was subscribed 2.70 times, while that for qualified institutional buyers (QIBs) 2.70 times and non-institutional investors 1.03 times.

The Rs 3,850-crore public offer comprises fresh issuance of equity shares of Rs 1,300 crore, and an OFS (offer for sale) of Rs 2,550 crore by its promoter entity Sanmar Holdings and Sanmar Engineering Services that will offload Rs 2,463.44 crore and Rs 86.56 crore worth of shares respectively.

The Chennai-based company will utilise the net proceeds from fresh issue towards early redemption of the non-convertible debentures (NCDs) and for general corporate purposes.

Chemplast Sanmar is a leading specialty chemical manufacturer in India. 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.

The company has four manufacturing facilities, among which, 3 are situated at Mettur, Berigai, and Cuddalore in Tamil Nadu, and one is located in Puducherry at Karaikal.

On the financial front, the company reported total revenue of Rs 3,815.11 crore compared to Rs 1,266.77 crore in FY19. Company’s bottom line almost quadrupled during the same period from Rs 118.46 in FY19 to Rs 410.24 crore in FY21.

It is not the first time that Chemplast Sanmar is listing on the bourses. It was delisted from the BSE, the NSE and MSE with effect from June 25, 2012, June 18, 2012 and June 25, 2012, respectively.