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Anupam Rasayan Shares Make Weak Debut on BSE, Fall 7% From Issue Price

Strategic Insights

— 1 min read

Anupam Rasayan, a manufacturer of specialty chemicals, made a lackluster debut on the stock exchange, with its shares plummeting 7% below its issue price as of 10:28 am. The company's initial public offering (IPO) was subscribed 44 times, with a market capitalization of Rs 5,342 crore upon listing. As a leader in custom synthesis and life science-related specialty chemicals, Anupam Rasayan has established strong relationships with diverse customers across geographies, with significant entry barriers in place. The company's focus on process innovation, value engineering, and complex chemistries has contributed to its growth, with a revenue CAGR of 24.3% between FY2018 to FY2020 and 45.0% for the nine-month period ending December 2021.

Key Takeaways:

  • Anupam Rasayan's shares made a weak debut on BSE, falling 7% from its issue price of Rs 555 to a low of Rs 501.15.
  • The company had a market capitalization of Rs 5,342 crore upon listing and is engaged in the manufacturing of custom synthesis and life science-related specialty chemicals.
  • Anupam Rasayan has strong and long-term relationships with diversified customers across geographies, with significant entry barriers in place.
  • The company reported a net profit of Rs 53 crore on revenues of Rs 529 crore in FY2020 and has posted strong revenue growth of 24.3% CAGR between FY2018 to FY2020.
  • Anupam Rasayan's shares were priced at a P/E of 95.15x, higher than Navin Fluorine (29.6x) and PI Industries (51.4x).
  • Analysts attribute the weak listing of shares to the high valuation of the company.
  • The Rs 760-crore IPO of Anupam Rasayan was subscribed 44 times, with the subscription open between March 12-14.

Statistics:

  • Market capitalization: Rs 5,342 crore
  • Net profit: Rs 53 crore
  • Revenues: Rs 529 crore (FY2020)
  • Revenue growth: 24.3% CAGR (FY2018 to FY2020)
  • Revenue growth (nine-month period ending December 2021): 45.0%
  • P/E ratio: 95.15x
  • Issue price: Rs 555
  • Lowest price: Rs 501.15

Sources:

  • News Point
  • HT Digital Content Services with permission

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