NEW DELHI: Anupam Rasayan's Rs 760 crore IPO opened for subscription this morning. The issue by the specialty chemicals company comprises entirely fresh issuance of shares, and is being sold in the Rs 553-555 price band.
At the upper limit of the price band, the scrip is asking a PE of 95.2 times trailing 12-month basis on restated EPS of Rs 5.80. This is significantly higher than the peer average of 33 times. Some analysts said the asking valuations exceed growth prospects.
Others insist on subscribing to the issue for the long term, as they see robust growth, market share gains and improved margins for the specialty chemicals company going forward.