Chemplast Sanmar IPO subscribed 2.17 times on the final day of the issue

The initial public offering (IPO) of Chemplast Sanmar Limited was subscribed 2.17 times on the third and final day of its issue, i.e., on August 12, 2021. The IPO received bids for 5,87,68,362 shares as against the issue size of 2,17,92,453 shares, according to the NSE data.

The QIB portion was subscribed 2.70 times, while the NII and Retail portions were subscribed 1.03 times and 2.29 times, respectively. The price band for the offer was fixed at Rs 530-541 per equity share. The retail investors were allowed to bid for a minimum of 27 equity shares and in multiples of 27 equity shares thereafter for 13 lots.

The company had plans to raise Rs 3,850 crore through its public offer. The issue comprises fresh issuance of shares, aggregating up to Rs 1,300 crore, and an offer for sale of up to Rs 2,550 crore by promoters and existing shareholders.

Promoters Sanmar Holdings (SHL) and Sanmar Engineering Services (SESL) will offload equity shares worth Rs 2,463.44 crore and Rs 86.56 crore respectively, in the offer for sale. The net proceeds from the fresh issue will be utilised for early redemption of non-convertible debentures worth Rs 1,238.25 crore and general corporate purposes, whereas proceeds from the offer for sale will go to the existing shareholders.

This is the second time when Chemplast Sanmar has raised money from the primary market. The stocks of the specialty manufacturer were delisted nearly a decade from the stock exchanges in June 2012.

The company had already raised Rs 1,732.5 crore from anchor investors on August 9, 2021, a day before the opening of the IPO. It allocated nearly 3.20 crore equity shares to the anchor investors at Rs 541 per share.

Chemplast Sanmar Ltd (CSL) is the largest manufacturer of specialty paste PVC (polyvinyl chloride) resin in India based on installed production capacity, as of December 2020.