Chemplast Sanmar IPO – Top 10 things to know; Should you apply? Anil Singhvi tells THIS; full timeline – allotment, listing, refund, share transfer – ALL DETAILS HERE

Chemplast Sanmar IPO – The Initial Public Offering of Chemplast Sanmar Limited opened today (10 August). The three-day public issue will end on 13 August 2021. If you are planning to invest in this IPO and want to know important details, ZEE Business will tell all that you would want to know – from IPO details, complete timeline from allotment to listing and what you must do with this issue – should you buy it or avoid it.  

Chemplast Sanmar IPO issue comprises 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. 

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Chemplast Sanmar Limited IPO – 10 things to know  

1. Symbol - CHEMPLAST 
2. Issue Period – 10 August 2021 to 12 August 2021 between 10 and 5 am 
3. Post issue Modification Period - 13 August 2021 between 10 am and 11 am. Cut-off time for UPI Mandate Confirmation is 13 August 2021 up to 12 pm 
4. Price Range – Rs 530 to Rs 541 
5. Face Value – Rs 5  
6. Tick Size – Re 1 
7. Bid Lot is 27 equity shares and in multiples thereof. The minimum order quantity is 1 lot or 27 equity shares 
8. Maximum Subscription Amount for Retail Investor is Rs 2 lakhs.  
9. Maximum Bid Quantity for QIB Investors is 39,952,818 equity shares in multiple of 27 Equity Shares (Calculated at lower end of the Price Band).  
10. Maximum Bid Quantity for NIB Investors is 18,160,362 equity shares in multiple of 27 Equity Shares (Calculated at lower end of the Price Band).  

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 KFin Technologies Private Limited. 

Chemplast Sanmar Limited IPO – Anil Singhvi gives his take 

Managing Editor Anil Singhvi’s advice investors to avoid investing in this IPO. He said that there will be opportunities in future. It is not necessary to invest in this IPO. 

However, there are a few positives for this company. 

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 noy 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 Limited IPO – FULL timeline 

1. Issue ends on 12 August 
2. Finalisation on the basis of allotment likely on 18 August 
3. Initiation of refunds likely on 20 August 
4. Transfer of shares to demat account on 23 August 
5. Listing date likely on 24 August 

The above timeline is on the basis of information available on the app of brokerage firm Edelweiss.