Chemplast Sanmar IPO – Speciality Chemical sector company files DRHP

Chemplast Sanmar Ltd. has filed papers for the IPO with the market regulator SEBI to raise Rs. 3,500 Crores through the IPO.

The issue consists of a fresh issue of equity shares worth Rs. 1500 Crores and OFS (Offer for sale) worth Rs. 2,000 Crores as per the DRHP.

In offer for sale, they are selling part of both Sanmar Holdings Ltd. worth Rs. 1850 Crores and Sanmar Engineering Services Ltd. worth Rs. 150 Crores.

What is the business of Chemplast Sanmar?

Chemplast Sanmar is the Chennai-based specialty chemical company manufacturing specialty paste PVC (polyvinyl chloride) resin, custom manufacturers of the pharmaceutical sector, agrochemical, and chemical fine sector.

They are famous for their paste PVC resin manufacturing but also produce chloro chemicals, Hydrogen peroxide, custom chemicals, etc.

In Sanmar engineering they take services like product divisions and steel casting division. They also have the business of shipping specialty chemicals which focuses on ‘Safe Ships and Clean Seas’.

In the past Chemplast Sanmar was delisted from stock exchanges(NSE & BSE) due to the effect from June 25, 2012.

Objectives of Chemplast Sanmar IPO?

The company stated in DRHP that they will be using Rs. 1,238 Crores for the redemption of their NCDs (non – convertible debentures) issued by them. Also, some amount will be used for general corporate purposes. 

Redemption in NCDs will help Sanmar to reduce debt to equity ratio, debt servicing cost and will also help in further expansion and investments in the business.

Many such IPOs are coming in 2021. Checkout here.

FAQs on Chemplast Sanmar IPO

What is the issue size of Chemplast Sanmar IPO?

Chemplast Sanmar plans to raise Rs. 3,500 Crores through the IPO. The issue consists of a fresh issue of equity shares worth Rs. 1500 Crores and OFS (Offer for sale) worth Rs. 2,000 Crores as per the DRHP.

When is Chemplast Sanmar IPO coming?

We can expect Chemplast Sanmar IPO soon in June or July in 2021.

What is the business of Chemplast Sanmar IPO?

They are famous for their paste PVC resin manufacturing but also produce chloro chemicals, Hydrogen peroxide, custom chemicals, etc.
In Sanmar engineering they take services like product divisions and steel casting division. They also have the business of shipping specialty chemicals which focuses on ‘Safe Ships and Clean Seas’.

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