On Day 1: March 12, 2021, Subscribe: 1.29 times
Anupam Rasayan India Ltd a Specialty chemicals company opens its IPO for a subscription today. The company has fixed a price band of Rs 553-Rs 555 for its Rs 760-crore initial public offering (IPO) for bidding on March 12. It is completely a fresh issue by the company and the net funds will get utilized for debt repayment. Will you Subscribe to Anupam Rasayan IPO?
|March 12, 2021
|March 16, 2021
|Rs 10 apiece
|Shares on offer
|Minimum bid size
|BSE and NSE
Will you Subscribe to Anupam Rasayan IPO ?
The purpose for the IPO: As of Jan. 31, 2021, Anupam Rasayan has a total debt worth Rs 843.5 crore. And from the Initial Public Offer (IPO) company will try to pay off Rs 563.70 crore in debt, including accrued interest.
Below are the comments given by Broking firms about Anupam Rasayan’s IPO.
- Choice Broking assigned a ‘subscribe for the long term’ rating for the issue considering the sectoral tailwinds and Anupam Rasayan’s diversified product applications.
Choice Broking forecasts a 22.6 percent CAGR rise in consolidated topline over FY20-23 to Rs 975.06 crore in FY23. The EBITDA margin is expected to contract by 62bps to 24.9 percent in FY23. “While with lower finance expenses, PAT margin may expand by 339bps to a level of 13.4 percent in FY23. RoIC and RoE are likely to expand from 4.1 percent and 3.4 percent in FY20 to 6.5 percent and 7.2 percent, respectively, in FY23.”
Will you Subscribe to Anupam Rasayan IPO?
2. Angel Broking recommended subscribing to the issue but highlighted similar risks.
“(a) The company has incurred significant indebtedness, and an inability to comply with repayment could adversely affect business. (b) Experiencing insufficient cash flows to meet required payments on debt and working capital requirements, could adversely impact on operation,” the brokerage detailed.
Brokerage firm Reliance Securities has said that the stock looks expensive compared to peers like SRF Ltd and PI Industries Ltd Industries. It added that it is not comfortable with the low operating cash flow yields.
3. Brokerage firm Reliance Securities has said that the stock looks expensive compared to peers like SRF Ltd and PI Industries Ltd Industries. It added that it is not comfortable with the low operating cash flow yields.
4. Anand Rathi is positive on the company’s long-term prospects and has recommended a ‘subscribe’ rating for the same.
5. Ventura Securities have recommended a ‘subscribe’ on the IPO.
6. Samco Securities have recommended a ‘subscribe’ on the IPO.
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