Anupam Rasayan shares climb as it enters US CDMO via Jayhawk Fine deal

Anupam Rasayan climbed on the BSE after announcing the acquisition of Jayhawk Fine Chemicals for $150 million, a deal analysts say could be value-accretive over the medium term

Anupam Rasayan share price today

  Specialty chemical manufacturer Anupam Rasayan’s share price gained 3 per cent on the BSE on Wednesday, December 10, after the company announced a strategic acquisition after market hours on Tuesday.

 

The stock hit an intraday high of ₹1,333.3 per share on the stock exchange, before paring gains marginally to trade 1.87 per cent higher at ₹1,318.35 at 10:56 AM. By comparison, the BSE Sensex was up 110 points (0.13 per cent) at the time of writing this report.

Anupam Rasayan to acquire Monitchem Kansas, arm Jayhawk Fine Chemicals

On Tuesday, Anupam Rasayan India said that it will acquire a US-based company -- Monitchem Kansas along with its subsidiaries, including Jayhawk Fine Chemicals Corporation.

 

 

In its first stock exchange filing, Anupam Rasayan said it the Board has approved the acquisition of Monitchem Kansas S.à r.l ('Monitchem') and its subsidiaries, Kansas HoldCo Inc., Kansas HoldCo 1, Inc., and Jayhawk Fine Chemicals Corporation, by way of purchase of shares of Monitchem from CABB Europe GmbH.

 

According to the company, Monitchem and its subsidiaries are involved in the business of supplying specific products to certain customers and consisting of specific customised and highly complex chemicals for the crop science, life science and performance material sectors.

 

Jayhawk, in particular, is engaged in the custom manufacture of advanced intermediates, active ingredients, and high-performance materials.

 

"The acquisition of the target group is aimed at strengthening the company’s strategic manufacturing footprint in the United States, acquiring niche, high-value manufacturing capabilities and gaining immediate access to an established American customer base," Anupam Rasayan said.

 

What does Monitchem arm Jayhawk's acquisition mean for Anupam Rasayan?

 

According to analysts at Emkay Global Financial services, the recent acquisition underscores Anupam's decisive strategic pivot toward becoming a more diversified, global specialty and custom manufacturing (CDMO) player. The transaction, it said, may prove to be “value-accretive’ over the medium term despite near-term leverage concerns.

 

As per the terms of the deal, Anupam Rasayan will acquire 100 per cent equity in Jayhawk Fine Chemicals LLC for an enterprise value (EV) of $134 million, valuing the company at ~9x EV/Ebitda as of CY24.  Jayhawk logged a revenue of ~$78 million in CY24, nearly flat over the last 3 calendar years, at Ebitda margin of ~19 per cent.

 

The total purchase consideration is $150 million, including $16 million of cash and cash equivalents and loans payable to the exiting shareholders. The acquisition will be funded via a mix of internal accruals, debt (~440 million), and quasi-equity investment of ~$110 million from a reputed global investment management fund.

 

"The deal significantly expands Anupam's addressable market, chemistry portfolio, and customer access—particularly in high-value, non-agro segments. Jayhawk can undertake various chemistries like Heterocyclic Synthesis, Azo Chemistry, Suzuki Coupling, Formylation, High Temperature Oxidation, etc, which would supplement Anupam's existing chemistries," it said.

 

Besides, Jayhawk Fine's acquisition marks Anupam's formal entry into the US specialty chemicals landscape and materially advances its ambitions in performance materials and non-agri CDMO.

 

The company operates multi-purpose manufacturing lines and a pilot plant that can support early-stage and commercial CDMO projects, giving Anupam a stronger foothold across the product lifecycle. 

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How will Anupam Rasayan benefit from acquiring Jayhawk Fine?

 

Emkay believes the deal provides three major benefits. First, it meaningfully diversifies Anupam’s geographic exposure beyond Japan and Europe, offering direct access to marquee US customers in aviation, electronics, semiconductors, and specialty materials.

 

Second, it accelerates the shift in revenue mix toward performance materials which, the brokerage estimates, could rise to around 35 per cent post integration from about 13 per cent earlier.

 

Third, the acquisition adds high-purity manufacturing know-how and local customer intimacy, both critical for scaling long-term CDMO contracts.

 

"Complementing this, Anupam’s increased ownership in Tanfac Industries strengthens its control over a strategically important asset in fluorine derivatives and inorganic chemicals. Tanfac has a strong backward integration play that enhances supply-chain security, margin stability, and chemistry depth," Emkay said, adding the integration allows Anupam to leverage captive inputs for downstream specialty products, improving cost competitiveness while supporting new product development.

 

The acquisition, Emkay believes, creates a more balanced portfolio across agrochemicals, life sciences, and performance materials, while also deepening Anupam’s technological moat.

 

By combining Jayhawk's customer-facing innovation and pilot-scale capabilities with Anupam’s low-cost, backward-integrated Indian manufacturing, the company can generate meaningful cross-selling and R&D synergies over time. 

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While the funding structure—including incremental debt and quasi-equity infusion—keeps near-term focus on balance sheet discipline, Emkay expects earnings visibility to improve as integration progresses. The brokerage has retained its 'ADD' rating on the stock, noting that the acquisitions enhance Anupam’s strategic positioning in higher-value segments with longer product lifecycles and stickier customer relationships.

 

"Anupam Rasayan's acquisition-led expansion is not merely capacity-driven but structurally transformative, positioning the company as a credible global CDMO partner with differentiated chemistries, broader markets, and stronger long-term growth optionality," the brokerage said with a share price target of ₹1,050.