Tag: IPO

Business World

Vadodara based Chemcon Speciality Chemicals Limited set to open IPO on September 21, 2020*

Sep 19, 2020 by Gouri Achary 0 Comments #Chemcon Speciality Chemicals Limited, #Frost & Sullivan Report, #IPO, #public offering

Leading manufacturer of speciality chemicals, Chemcon Speciality Chemicals Limited will be opening its initial public offering for subscription on September 21, 2020,* and will close on September 23, 2020, with a price band of ₹ 338 – ₹ 340 per Equity Share. Bids submitted by Anchor Investors will be submitted and allocated one Working Day prior to the Bid/Issue Opening Date, being September 18, 2020. The Company is a leading manufacturer of speciality chemicals such as Hexamethyldisilazane (HMDS) and Chloromethyl Isopropyl Carbonate (CMIC) which are chemicals predominately used in the pharmaceutical industry. It manufactures Inorganic Bromides used as completion fluids in the oilfield industry.

As per the Frost & Sullivan Report, the Company was the only manufacturer of HMDS in India and was the third-largest manufacturer of HMDS in terms of production in CY 2019. Further, in terms of the Frost & Sullivan Report, the Company was the largest manufacturer in India and second largest manufacturer worldwide, for CMIC in terms of production in CY 2019. It has also recently developed 2 new products, namely 4-chlorobutyryl chloride (‘4CBC’) and 2,5 DHT (2,5-Dihydroxy-1,4-dithiane) and has already its executed first sale of 4 CBC in July 2020.

* The Company and the Selling Shareholders may, in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Issue Opening Date, being September 18, 2020.

The Issue is being made through the book-building process in accordance with Regulation 6(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, where allocation to QIBs is not more than 50% of the Issue size, Non-Institutional Bidders is not less than 15% of the Issue size and Retail Individual Bidders is not less than 35% of the Issue size.

The Company has revenue from Operations of ₹ 262.05 crores with EBITDA of ₹ 70.26 crores and Profit after Tax is ₹ 48.85 crore in FY 2020. It has grown at a 29% CAGR in sales, 25% in EBITA and 36% in PAT between FY18 and FY20. As on March 31, 2020, the total borrowings of the Company was ₹ 44.51 cr, while the debt-equity ratio was 0.31.

Additionally, the company has long-standing relationships with its key customers namely including Laurus Labs Limited, Hetero Labs Limited, Aurobindo Pharma Limited, Macleods Pharmaceuticals Limited, Lantech Pharmaceuticals Limited, Vivin Drugs & Pharmaceuticals Limited, Ind-Swift Laboratories Limited, Water Systems Speciality Chemical DMCC, CC Gran Limited Liability Company, Shree Radha Overseas and also exports its products to global markets covering US, Germany, Italy, South Korea, People’s Republic of China, Japan, United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia.

The Company intends to utilize the Net Proceeds from the Fresh Issue towards capital expenditure towards the expansion of the Manufacturing Facility, To meet working capital requirements and towards general corporate purposes.

Intensive Fiscal Services Private Limited and Ambit Capital Private Limited are the BRLMs to the Issue.

Business World

Rossari Biotech Limited to launch IPO on 13th July 2020

Jul 8, 2020 by Neel Achary 0 Comments #IPO, #Rossari Biotech Limited, #stock market

Chennai, July 8, 2020: Rossari Biotech Limited, a leading specialty chemicals manufacturer (Source: F&S Report) focusing on home, personal care and performance chemicals will be launching its initial public offering on Monday, July 13, 2020 and will close on Wednesday, July 15, 2020, with a price band of ₹ 423 – ₹ 425 per Equity Share. Bids by anchor investors shall be submitted, and allocation to them will be completed on July 10, 2020, being one working day prior to the Offer opening date.

As mentioned in the red herring prospectus dated July 4, 2020 (“RHP“), filed by Company with the Registrar of Companies, Maharashtra at Mumbai (“RoC”), the Company raised ₹ 999.99 million in a private placement of 2,352,920 Equity Shares to various investors including Malabar India Fund Limited, Axis New Opportunities AIF-I , Mirae Asset Mid Cap Fund, Sundaram Mutual Fund A/C Sundaram Select Micro Cap Series – XIV, IIFL Special Opportunities Fund – Series 4 and ICICI Lombard General Insurance Company Limited (“Pre-IPO Placement”). The size of the fresh issue of up to ₹ 1,500 million has been reduced by ₹ 999.99 million pursuant to the Pre-IPO Placement, and accordingly, the size of the fresh issue is up to ₹ 500 million.

The Offer is being made in accordance with Regulation 19(2)b of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regulations”) through book building process wherein not less than 15% of the Offer shall be available for allocation on a proportionate basis to non-institutional investors and not less than 35% of the Offer shall be available for allocation to retail individual investors in accordance with the SEBI ICDR Regulations.

The proceeds of the Fresh Issue (less the Offer expenses) and the proceeds from the Pre-IPO Placement are proposed to be utilized to repay/prepay borrowings availed by the Company of ₹ 650 million, to fund its working capital requirements of ₹ 500 million and towards general corporate purposes. The Company will not receive any proceeds from the Offer for Sale.

Axis Capital Limited and ICICI Securities Limited have been appointed as the book running lead managers to the Offer and Axcelus Finserv Private Limited was appointed as advisor to the Offer. The Equity Shares offered through the RHP shall be listed on National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”). Link Intime India Private Limited is the registrar to the Offer.

Additionally, in fiscal year 2020, the Company generated total revenues of ₹ 6,038.18 million and a net profit after tax of ₹ 652.53 million. Over the last 3 years, it has managed to clock a compounded annual growth rate of 41.65% for its revenues and a compounded annual growth rate of 60.27% for its profit after tax. The debt equity ratio of the company stood steady at 0.23 across fiscal years 2018-2020

According to the report titled “Global and Indian Specialty Chemicals Report” dated December 10, 2019, prepared by Frost & Sullivan (India) Private Limited (“F&S”, and such report, the “F&S Report“), the Company was the largest manufacturer of textile specialty chemicals in India as on September 30, 2019, and is a leading manufacturer of acrylic polymers in India. As stated in the RHP, the Company plans to venture into the construction chemicals market and water treatment formulations market. The global specialty chemicals market cumulatively constitutes a global market of approximately USD 237 billion in 2018 and is expected to grow at 5.4% per annum to reach approximately USD 308 billion by 2023. The Company’s presence in the specialty chemicals market, particularly in the home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products, presents significant growth opportunities due to the following factors: (i) demographic overview and rapid urbanisation leading to consumption growth, (ii) growing demand for environmentally sustainable chemicals and (iii) positive regulatory focus from the Indian governmental authorities on manufacturing activities in India. (Source: F&S Report).