Anupam Rasayan IPO opens for subscription, should you subscribe to the share sale?
Anupam Rasayan IPO comprises fresh issuance of equity shares and proceeds of the issue would be mainly used to pay the debt
BusinessToday.In | March 12, 2021 | Updated 11:48 IST
Anupam Rasayan has fixed a price band of Rs 553-555 for the share sale. The public subscription will close on March 16.
Speciality chemical company Anupam Rasayan opened its initial public offer today. The IPO comprises fresh issuance of equity shares and proceeds of the issue would be mainly used to pay the debt. The company has fixed a price band of Rs 553-555 for the share sale. The public subscription will close on March 16.
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.