Speciality chemicals company Chemplast Sanmar Limited will open its IPO on August 10. The price band has been fixed at Rs. 530-541 per share. The Rs. 3,850 crores IPO backed by Canadian billionaire Prem Watsa will close on August 12.
The bidding for anchor investors will be open for a day on August 9. The IPO consists of a fresh issue of ₹1,300 crores and an offer for sale (OFS) of ₹2,550 crores by its current promoters and shareholders.
75% of the net offering is reserved for qualified institutional buyers (QIBs), while a 15% stake will be allotted to non-institutional investors and 10% to retail investors.
“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,” Chemplast Sanmar said in the draft red herring prospectus (DRHP).
Chemplast Sanmar Ltd is a part of the Chennai-based industrial conglomerate Sanmar Group. The company focuses on the manufacturing of speciality paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical, and fine chemicals sectors.
