Anupam Rasayan India Limited

Incorporated in 1984, Anupam Rasayan India Limited is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India. Over the years, the company evolved into custom synthesis and manufacturing of life science related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers. The company have developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited that has helped the company to expand company's product offerings and geographic reach across Europe, Japan, United States and India. In particular, company have been manufacturing products for certain customers for over 10 years. In the nine months ended December 31, 2020, company manufactured products for over 53 domestic and international customer, including 17 multinational companies. The Government of India has also recognised the Company as a three star export house. The company's R&D team has successfully carried out multi-step synthesis and scale-up for several new molecules in the area of life sciences related specialty chemicals and other specialty chemicals, and as a result, expanded company's commercialised product portfolio from 25 products in Fiscal 2018 to 34 products in Fiscal 2020 and 41 products in the nine months ended December 31, 2020. As per financial performance, Anupam Rasayan has posted total income/net profits of Rs. 349.18 cr. / Rs. 40.07 cr. (FY18), Rs. 520.96 cr. / Rs. 49.27 cr. (FY19) and Rs 539.38 cr / Rs 51.24 cr (FY20). For upto Q3 of FY21, company has posted profit of Rs 47.06 Cr on total revenue of Rs 563.16 Cr. So company has shown good performance. Anupam Rasayan has posted an average EPS of Rs. 6.77 and average RoNW of 10.18% for last three fiscals. Issue is priced at a P/BV of 5.80 as per NAV of 95.64 on 31.12.20. As per FY20 earnings, P/E is around 108. If we attribute latest annualised earnings of FY21 on fully diluted equity post issue, then asking price is at a P/E of around 88. So issue looks aggressively priced. As per RHP, the listed peers are shown in above table.  On BRLM's front, four BRLMs are associated with this IPO, and have handled around 30 IPOs in last three fiscals, and from last 10 IPOs, 3 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs, all are trading above issue price. ( As on 06.03.2021 ) As per financials, results are very good, RoNW is 9.62% for last three fiscals and issue looks aggressively priced with respect to current earnings. This industry is growing at good rate, and expected to grow at good rate for next 3-5 years. Performance of BRLMs is good. So we give SUBSCRIBE rating to this IPO for listing gains.

• 1 Mr. Anand S Desai
• 2 Ms. Mona A Desai
• 3 Kiran Pallavi Investment LLC
• 4 REHASH INDUSTRIAL 
• 5 RESINS CHEMICALS PRIVATE LIMITED