Reblog: Anupam Rasayan IPO review
- ARL is in custom synthesis and specialty chemical manufacturing business.
- Life science specialty chemical has a major share in top lines.
- Capex of Rs. 800 cr. in the last three fiscals has started bearing fruits.
- The issue is aggressively priced based on comparison with listed peers.
- Investors looking for long-term bets may consider investing in this IPO.
ABOUT COMPANY:
Anupam Rasayan Ltd. (ARL) is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India (Source: F&S Report). It commenced business as a partnership firm in 1984 as a manufacturer of conventional products and have, over the years, evolved into custom synthesis and manufacturing of life science-related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers. The company’s key focus in custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.
It has two distinct business verticals (i) life science-related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and (ii) other specialty chemicals, comprising specialty pigment and dyes, and polymer additives. In Fiscal 2020 and in the nine months ended December 31, 2020, its revenues from life science-related specialty chemicals vertical accounted for 95.37% and 93.75%, respectively, of revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 6.25%, respectively, of revenue from operations, in such periods.
ARL has developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited that has helped it expand product offerings and geographic reach across Europe, Japan, United States and India. In particular, it has been manufacturing products for certain customers for over 10 years. In the nine months ended December 31, 2020, ARL manufactured products for over 53 domestic and international customers, including 17 multinational companies. The Government of India has also recognized the Company as a three-star export house.