Chemplast Sanmar’s Rs 3,850-crore IPO to open on August 10; units worth band at Rs 530-541/share

Specialty chemical compounds producer Chemplast Sanmar Ltd on Thursday mentioned it has mounted a worth band of Rs 530-541 a share for its Rs 3,850-crore preliminary public providing.
The preliminary share-sale will open for public subscription on August 10, and conclude on August 12, the corporate mentioned in a digital press convention.
The Rs-3,850-crore preliminary public providing (IPO) contains contemporary challenge of fairness shares price Rs 1,300 crore and an offer-for-sale of Rs 2,550 crore.
The provide on the market contains the sale of Rs 2,463.44 crore by Sanmar Holdings Ltd and Rs 86.56 crore by Sanmar Engineering Services Ltd.

Chennai-based Chemplast Sanmar is a number one specialty chemical compounds producer with deal with specialty paste PVC (polyvinyl chloride) resin and customized manufacturing of beginning supplies and intermediates for pharmaceutical, agro-chemical and fantastic chemical compounds sectors.
The firm mentioned it could utilise an mixture quantity of Rs 1,238.25 crore from the online proceeds in direction of early redemption of the non-convertible debentures (NCDs) issued by it. In addition, funds may even be used for common company functions.
“The early redemption of the NCDs in full will help reduce our outstanding indebtedness and debt servicing costs, assist us in maintaining a favourable debt-to-equity ratio and enable utilisation of our internal accruals for further investment in business growth and expansion,” the corporate mentioned within the crimson herring prospectus.
“In addition, we believe that our improved leverage ratio, consequent to such redemption of NCDs, will improve our ability to raise debt in the future to fund potential business development opportunities and plans,” it added
A complete of 75 per cent of the difficulty dimension has been reserved for certified institutional consumers (QIBs), 15 per cent for non-institutional buyers and 10 per cent for retail buyers.
Investors can bid for no less than 27 fairness shares and in a number of of 27 fairness shares thereafter.

Chemplast Sanmar was delisted almost a decade from the inventory exchanges. It was delisted from BSE, NSE and MSE with impact from June 25, 2012, June 18, 2012 and June 25, 2012, respectively.
ICICI Securities, Axis Capital, Credit Suisse Securities (India) Private Ltd, IIFL Securities, Ambit, BOB Capital Markets, HDFC Bank, IndusInd Bank and Yes Securities are the service provider bankers to the difficulty.