The initial public offer of speciality chemicals company Anupam Rasayan India Limited was subscribed 1.29 times on the first day of subscription on Friday. The Rs 760-crore public issue received bids for 1,25,08,209 shares against 97,01,809 shares on offer, according to NSE data. The category for non-institutional investors was subscribed 9 per cent and those for retail individual investors (RIIs) 2.58 times. Price range for the offer, which would close on Tuesday, has been fixed at Rs 553-555 per share. Anupam Rasayan had on Wednesday raised Rs 225 crore from anchor investors. The initial public offer (IPO) is an entirely fresh issuance of equity shares and proceeds of the issue would be mainly used to pay the debt.
Read more about High valuation vs growth prospects: Should you bid for Anupam Rasayan IPO? on Business Standard. While most analysts have assigned a Subscribe rating to the IPO, they have also flagged valuations concerns
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.
The Surat-based company, Anupam Rasayan, kicked off its public offering today, and the issue will remain open for subscription till March 16.The company has