Chemplast Sanmar IPO – The Initial Public Offering of Chemplast Sanmar Limited is into its third and final day today, August 12. As per the information on the NSE, this issue has been subscribed 0.80 times as on 12 August by 2:34 pm. The Retail Individual Investors (RIIs) have subscribed this issue 1.01 time. The non-institutional investors have subscribed it only 0.08 times by this time. The Qualified Institutional Buyers (QIBs) have subscribed it 1.08 times, which translates into 23,545,431 share bids out of the 21,792,453 shares available for subscription by this class of investors. 

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Investors must know that the final data is expected to be published by 8 pm today. The issue will end by 5 pm.  

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If the issue gets oversubscribed one could check the allotment status online via BSE direct link or through the IPO registrar’s website. The registrar of the Chemplast Sanmar IPO is KFin Technologies Private Limited.  

Chemplast Sanmar Limited IPO – Anil Singhvi gives his take  

Managing Editor Anil Singhvi’s advised to investors to avoid investing in this IPO. He had said that there will be opportunities in future, and it was not necessary to invest in this IPO.  

The Market Guru also listed positives and negatives:-  

Positives  

  1. Management is quite experienced  
  2. The company is in a leadership position its products segment, so they have a pricing power advantage along with the business model  
  3. Valuations are okay and not very attractive  

Negatives  

  1. Company delisted its shares from BSE and Madras Stock Exchange at Rs 15 in 2012. The company is not again trying to list it at a Price Range of Rs 530 to Rs 541 after 8-9 years. This creates a question mark on the company.   
  2. The entire proceeds from the issue will be utilised for reducing debts.   
  3. The promoter holding will also come down to 45 per cent.  
  4. The competitor is Finolex which is more attractive in term of    

The offloading of shares is significant along with the track record of delisting, Singhvi said. This does not give comfort. The Market Guru also gave a caveat that the issue may or may not have a good listing. His recommendations are on the basis of company’s fundamentals.    

Chemplast Sanmar IPO issue comprises of equity shares aggregating up to Rs 3,850 cr out of which fresh issue is of up to Rs 1,300 cr and an Offer for Sale (OFS) of up to Rs 2,550 cr. This includes Anchor portion of 32,024,029 equity shares. The issue is 100 per cent book building.  

The Global Coordinators and Book Running Lead Managers (BRLMs) include ICICI Securities Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited, Ambit Private Limited, BOB Capital Markets Limited and HDFC Bank Limited.  

The Book Running Lead Managers are IndusInd Bank Limited and YES Securities (India) Limited while the Sponsor Bank is ICICI Bank Limited. The name of the registrar is  

Chemplast Sanmar Limited IPO – FULL timeline  

- Finalisation on the basis of allotment likely on 18 August  
- Initiation of refunds likely on 20 August  
- Transfer of shares to demat account on 23 August  
- Listing date likely on 24 August