Shares of Anupam Rasayan moved higher by 6 per cent to Rs 586, bouncing back 13 per cent from day’s low of Rs 517, on the BSE on Monday after the company said it has re-paid significant debt, utilising the initial public offer (IPO) proceeds. The rally oushed the stock to its highest level since its listing on March 24, 2021. Moreover, it was trading above its issue price of Rs 555 per share and has recovered 24 per cent from its low of Rs 472, touched on March 31.
At 02:41 pm, the stock of the company, engaged in manufacture of life science related chemicals and other speciality chemicals, was trading 1 per cent higher at Rs 559 on the BSE. In comparison, the S&P BSE Sensex was down 3.7 per cent or 1,820 points at 47,772.
“The company has re-paid certain identified borrowings aggregating to Rs 470.73 crore as on March 31, 2021 of its total outstanding debt from the net proceeds of its recently completed initial public offering,” Anupam Rasayan said in an exchange filing. This will result in significant savings in the finance cost, it said.
The Rs 760-crore IPO of Anupam Rasayan had received strong response from the investors. The specialty chemicals maker’s issue was subscribed 44 times led by non-institutional investors who bid for 97.42 times the shares on offer, according to exchange data. The qualified institutional buyers (QIB) portion was subscribed 65.74 times. Non-institutional investors’ portion subscribed by 97.42 times and of retail investors by 10.77 times, data shows.
The company had said it plan to utilise the proceeds for repayment of Rs 564 crore debt and the remaining for general corporate purposes. While most analysts had assigned a Subscribe rating to the IPO, they have also flagged valuations concerns. The company has strong and long-term relationships with various multinational corporations, including Syngenta Asia Pacific Pte., Sumitomo Chemical Company and UPL.
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