Specialty chemicals manufacturer Chemplast Sanmar Ltd on Thursday said it has fixed a price band of Rs 530-541 a share for its Rs 3,850-crore initial public offering.
The initial share-sale will open for public subscription on August 10, and conclude on August 12, the company said in a virtual press conference.
The Rs-3,850-crore initial public offering (IPO) comprises fresh issue of equity shares worth Rs 1,300 crore and an offer-for-sale of Rs 2,550 crore.
The offer for sale comprises 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 leading specialty chemicals manufacturer with focus on specialty paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors.
The company said it would utilise an aggregate amount of Rs 1,238.25 crore from the net proceeds towards early redemption of the non-convertible debentures (NCDs) issued by it. In addition, funds will also be used for general corporate purposes.
”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 company said in the red 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 total of 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 10 per cent for retail investors.
Investors can bid for a minimum of 27 equity shares and in multiple of 27 equity shares thereafter.
Chemplast Sanmar was delisted nearly a decade from the stock exchanges. It was delisted from BSE, NSE and MSE with effect 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 merchant bankers to the issue.
