India’s IPO market is again turning busy with Aditya Birla Sun Life AMC IPO schedule to open on 29 September for subscription. The offer, priced in the range of INR695 – 712 per share, aims to mobilize as much as INR2,768.26 crore by selling 38,880,000 shares. All the shares will be offered by existing shareholders, valuing the firm at nearly INR20,505.6 crore at the upper end of the price band. Following the successful listings of HDFC AMC and Reliance Nippon AMC, investors will be surely looking positively to this IPO as well. This is also visible in the strong grey market premium the offer is commanding. Through Aditya Birla AMC IPO review, we try to find out if the company’s valuation leaves something on the table for investors.
Originally SEL lined up its secondary offer in 2018, but finally enters the market now.
Dilution in promoter’s stake remains a major concern.
The issue is by way of offer for sale, no fresh equity is being raised.
Based on its financial data, the issue appears reasonably priced.
Preface: The company originally filed its offer documents for the same number of shares as OFS in August 2018 to mobilize around Rs. 1400 cr. and also received SEBI node, but it skipped the issue amidst uncertainties prevailed in the markets as claimed. At that time there were five BRLMs for fundraising exercises. It refiled offer documents in June 2021 and is now finally entering the capital market with its secondary offer with three BRLMs (Credit Suisse and BNP Paribas are not on the list). If we weigh both DRHPs, then the company has posted consistent growth in its top line but the bottom line marked inconsistency. However, based on financial data since FY16, the company remained cash-rich and did not want any fresh funding. The major concern that remains is the diminishing promoter’s holding which will come down to 36.56% from 43.91% post this issue. It’s worthwhile to note that while the secondary market was in a sluggish mood, this IPO mulled a collection of Rs. 1400 cr. and now when the secondary market is in pink of its health, they are planning mobilization of Rs. 1283 cr. i.e. they have reduced the valuation and kept something on the table for new investors.
About Company:
Sansera Engineering Ltd. (SEL) is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors. Within the automotive sector, it manufactures and supplies a range of precision forged and machined components and assemblies that are critical for engine, transmission, suspension, braking, chassis and other systems for the two-wheeler, passenger vehicle and commercial vehicle verticals. Within the non-automotive sector, the company manufactures and supplies a range of precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods. SEL supplies most of its products directly to OEMs in finished condition, resulting in significant value addition by it.
SEL is one of the top 10 global suppliers of connecting rods within the light vehicle segment (passenger vehicles with a gross vehicle weight of 3.5 tonnes or less, “Light Vehicle”) and one of the top 10 global suppliers of connecting rods within the commercial vehicle (“CV”) segment for CY 2020. (Source: The Ricardo Report).
AOL is manufacturing speciality chemicals and critical APIs.
Robust performance in pre-IPO year raises concern.
Based on financial parameters, IPO is fully priced.
Risk seekers/cash surplus investors may consider the investment.
ABOUT COMPANY:
Ami Organics Ltd. (AOL) is a research and development (“R&D”) driven manufacturer of speciality chemicals with varied end usage, focused on the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated and generic active pharmaceutical ingredients (“APIs”) and New Chemical Entities (“NCE”) and key starting material for agrochemical and fine chemicals, especially from its recent acquisition of the business of Gujarat Organics Limited (“GOL”)(“Acquisition”). As per the F&S Report, it is one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. The Pharma Intermediates which the company manufactures, find application in certain high-growth therapeutic areas including anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant, commanding significant market share globally.
It has developed and commercialized over 450 Pharma Intermediates for APIs across 17 key therapeutic areas since inception and NCE, with a strong focus on R&D across select high-growth high margin therapeutic areas such as anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anticoagulant, for use across the global pharmaceutical market. AOL’s Pharma Intermediates used for manufacturing of APIs and NCEs portfolio has expanded from over 425 products as of March 31, 2019, to over 450 products as of March 31, 2021.
It recently completed the acquisition of two additional manufacturing facilities operated by GOL which has added preservatives (parabens and parabens formulations which have end usage in cosmetics, animal food and personal care industries) and other speciality chemicals (with end usage in inter alia the cosmetics, dyes polymers and agrochemicals industries) in the existing product portfolio, which command significant market share globally in the supply of certain paraben derivatives, as per the F&S Report). The Acquisition is in line with its inorganic growth strategy of foraying further into the speciality chemicals sector and believes that it will enable it to significantly diversify its existing product portfolio, with an objective of attaining inorganic expansion of business.
As of the date of this RHP, it has eight process patent applications (in respect of intermediates used in the manufacture of Apixaban, Rivaroxaban, Nintedanib, Vortioxetine, Selexipag, Pimavanserin, Efinaconazole and Eliglustat). It currently supplies its products to well-known 150 plus Indian customers and in 25 overseas countries. It has three manufacturing facilities in the state of Gujarat.
ISSUE DETAILS / CAPITAL HISTORY:
To part finance its needs for repayment/prepayment of certain borrowings (Rs. 140 cr.), working capital (Rs. 90 cr.) and general corpus fund, AOL is coming out with a maiden IPO comprising fresh equity issue worth Rs. 200 cr. (approx. 3278688 shares at the upper cap) and an offer for sale of 6059600 equity shares of Rs. 10 each (Rs. 369.64 cr. at the upper cap). Thus overall the company will be raising approx. Rs. 569.64 cr. at the upper price band. The issue opens for subscription on September 01, 2021, and will close on September 03, 2021. The company has fixed a price band of Rs. 603 – Rs. 610 per share. Minimum application is to be made for 24 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 25.63% of the post issue paid-up equity capital of the company. The company has raised Rs. 100 cr. as pre-IPO placement in August 2021 by the issue of 1658374 equity shares at Rs. 603 per share to few institutional investors. AOL has allocated the issue as 50% for QIBs, 15% for HNIs and 35% for Retail investors.
Book Running Lead Managers to this issue are Intensive Fiscal Services Pvt. Ltd., Ambit Pvt. Ltd. and Axis Capital Ltd. while Link Intime India Pvt. Ltd. is the registrar to the issue.
Having issued initial equity at par, AOL raised further equity at Rs. 603.00 per share in August 2021. It has also issued bonus shares in the ratio of 6 for 1 in April 2018 and in the ratio of 2 for 1 in March 2021.
The average cost of acquisition of shares by the promoters/selling stake holders is Rs. 0.48, Rs. 0.56, Rs. 23.49 /Rs. 0.48, Rs. 20.67, Rs. 25.53, Rs. 30.02, Rs. 31.04, Rs. 31.85, Rs. 32.07, Rs. 33.85, Rs. 33.91, Rs. 39.45, Rs. 40.19, Rs. 41.70, Rs. 47.44, Rs. 48.29 and Rs. 58.18 per share.
Post issue, AOL’s current paid-up equity capital of Rs. 33.16 cr. (33158374 shares) will stand enhanced to Rs. 36.44 cr. (approx. 36437062 shares based on upper cap). At the upper price band, the company is looking for a market cap of Rs. 2222.66 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, on a consolidated basis, AOL has posted turnover/net profits of Rs. 238.90 cr. / Rs. 23.30 cr. (FY19), Rs. 242.49 cr. / Rs. 27.47 cr. (FY20) and Rs. 341.99 cr. / Rs. 54.00 cr. (FY21). A sudden jump in the top and bottom lines in a pre-IPO year with a pandemic is a bit surprising.
For the last three years, on a consolidated basis, AOL has reported an average EPS of Rs. 12.71 and an average RoNW of 29.09%. The issue is priced at a P/BV of 11.51 based on its NAV of Rs. 52.99 as of March 31, 2021, and at a P/BV of 4.76 based on its post-issue NAV of Rs. 128.15 per share (at the upper cap).
If we attribute FY21 earnings on post IPO fully diluted equity, then the asking price is at a P/E of around 41.16, making it a fully priced offer (at the upper cap).
COMPARISON WITH LISTED PEERS:
As per offer documents, AOL has shown Aarti Ind., Hikal Ltd., Valiant Organics, Vinati Organics, Neuland Labs and Atul Ltd., as its listed peers. They are currently trading at a P/E of 56.49, 47.32, 29.98, 66.14, 28.97 and 39.67 (as of August 27, 2021). However, they are not truly comparable on an apple to apple basis.
DIVIDEND POLICY: AOL has not declared any dividend for the last three years to date. However, it will follow a prudent dividend policy post listing based on its financial performance and future prospects.
MERCHANT BANKER’S TRACK RECORDS:
The three BRLMs associated with this issue have handled 27 public issues in the last three years out of which 12 issues closed below the offer price on the listing dates.
CONCLUSION / INVESTMENT STRATEGY Based on super financial performance for FY21, the issue is fully priced. The sustainability of such higher margins going forward is a major concern. Many options at cheaper valuations are available in secondary markets. On financial parameters, AOL is no way near to its listed peers. Greedy pricing is perhaps on account of the current fancy for chemical counters. Hence risk seeker/cash surplus investors may take a call of investment with a long term perspective.
The original review has been authored by Dilip Davda, appears on chittorgarh.com and is available here.
DIL is the largest franchisee of Yum Brands in India.
The company is also the largest player in the QSR segment.
Outlets of DIL are most fancied amongst today’s generation.
Re-run of the Zomato saga is very much likely for this IPO as well.
Cash surplus/risk seekers may consider investing in this negative P/E offer.
Preface: While we have witnessed madness in the rush for loss-making companies maiden floats in the recent past with the historic saga of Zomato, there are four IPOs lined up for opening on a single day i.e. 4th of August 2021. DIL is one of them and has also become the talk of the town on the lines of performance by Zomato, the latest loss-making company’s debut as well as companies like Burger King, Barbeque Nations in the recent past. Few Dividend scheme MFs investing in Zomato IPO has raised eyebrows.
On the one hand, the Primary market has started a new equation of valuations for loss-making companies, permission from regulators for loss-making companies to float on the other hand has surprised one and all. If we recall the Controller of Capital Issues (CCI) regime, loss-making companies IPOs were not at all permitted. While SEBI has been alarming on issue price band for more than a decade now, it has not done any concrete thing on this issue.
However, according to seasoned players, CCI was a controller of issues and hence was empowered to do so, whereas, post opening up of financial sector for global play, SEBI being a regulator, is trying to just regulate the security market. When advanced countries have seen listings of loss-making companies, why India cannot follow the same. All such companies do run disclaimed on the front page of offer documents about their loss-making status and likely continuation of the said trends for coming years. Thus it is for the knowledgeable investors to take a final call on their investment decisions.
However, it is worthwhile to note that SEBI has initiated its plans on the book-building process and pricing mechanics as per a recent media release. Let us hope that it takes a prudent measure on this aspect to protect retail investors masses.
About the Company:
Devyani International Ltd. (DIL) is the largest franchisee of Yum Brands in India and also among the largest operators of chain quick-service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of March 31, 2021, and 696 stores across 166 cities in India, as of June 30, 2021.
Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has a presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 2020. In addition, DIL is a franchisee for the Costa Coffee brand and stores in India. Its business is broadly classified into three verticals that include stores of KFC, Pizza Hut and Costa Coffee operated in India (KFC, Pizza Hut and Costa Coffee referred to as “Core Brands”, and such business in India referred to as the “Core Brands Business”); stores operated outside India primarily comprising KFC and Pizza Hut stores operated in Nepal and Nigeria (“International Business”); and certain other operations in the F&B industry, including stores of own brands such as Vaango and Food Street (“Other Business”). Revenue from Core Brands Business, together with International Business, represented 83.01%, 82.94% and 94.19% of its revenue from operations in Fiscals 2019, 2020 and 2021, respectively.
Following the onset of COVID-19, it has increased focus on safety by the introduction of contactless delivery and takeaway, ensuring greater cleanliness of stores, additional safety measures such as frequent sanitization and temperature checks. Among measures, it adopted to counter the effects of COVID-19 include re-developing menus to focus on delivery and takeaway options. DIL also introduced measures to reduce fixed and variable costs and sought rental waivers from store landlords and lessors. It also rationalized certain loss-making stores to ensure that the company continues to maintain a profitability position and strong financial performance. DIL serves a wide range of customers across various price points as a multi-dimensional comprehensive QSR player. It will continue to invest in technology to maintain its competitive advantage.
Issue Details / Capital History:
To part finance its plans for repayment/prepayment of certain borrowings (Rs. 324 cr.) and general corpus funding, DIL is coming out with a maiden IPO via book building route to mobilize Rs. 1838 cr. at the upper price band of the issue. The issue comprises a fresh equity issue worth Rs. 440 cr. (approx. 48888840 shares) and an offer for sale of 155333330 equity shares of Re. 1 each (worth Rs. 1398 cr.). The company has fixed a price band of Rs. 86 – Rs. 90 per share. The issue opens for subscription on August 04, 2021, and will close on August 06, 2021. The minimum application to be made is for 165 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 16.98% of the post issue paid-up capital of the company.
DIL has reserved 550000 equity shares for its eligible employees and out of the residual portion, it has allocated 75% for QIBs, 15% for HNIs and 10% for retail investors.
Book Running Lead Managers (BRLMs) to this issue are Kotak Mahindra Capital Co. Ltd., CLSA India Pvt. Ltd., Edelweiss Financial Services Ltd. and Motilal Oswal Investment Advisors Ltd. Link Intime India Pvt. Ltd. is the registrar to the issue.
Having issued initial equity at par, DIL raised further equity in the price range of Rs. 15 to Rs. 43.33 per share (based on FV of Re. 1 per share) between July 2000 and March 2021. It has also issued bonus shares in the ratio of 2 for 1 in February 2002, 3.3 for 1in May 2011 and 1 for 1 in January 2012. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. Rs. N.A., Rs. 0.66, Rs. 3.24 / Rs. 3.24 and Rs. 30.61 per share.
Post issue, DIL’s current paid-up equity capital of Rs. 115.36 cr. will stand enhanced to Rs. 120.25 cr. At the upper price band of the issue, DIL is looking for a market cap of Rs. 10822.71 cr.
Financial Performance:
On the financial performance front, on a consolidated basis, DIL has posted turnover/net profits (loss) of Rs. 1323.68 cr. / Rs. – (59.29) cr. (FY19), Rs. 1535.04 cr. / Rs. – (78.75) cr. (FY20) and Rs. 1198.90 cr. / Rs. – (81.32) cr. (FY21). While it has marked a setback in the top line for FY21, it has reported higher losses for all these years.
For the last three fiscals, DIL has (on a consolidated basis) posted an average EPS of Rs. – (0.76) and an average RoNW of – (24.26%). The issue is priced at a P/BV of 87.38 based on its NAV of Rs. 1.03 as of March 31, 2021, and at a P/BV of 19.52 based on its post-issue NAV of Rs. 4.61 (at the upper cap).
As the company has been incurring losses for the last three fiscals, its P/E is negative. (NOT ASCERTAINABLE)
Comparison With Listed Peers:
As per offer documents, DIL has shown Jubilant Foodworks, Westlife Development and Burger King as its listed peers. They are currently trading at a P/E of around 133.56, 00 and 00 (as of July 30, 2021). However, they are not truly comparable on an apple to apple basis.
Dividend Policy:
The company has not declared any dividend for the three fiscal years preceding the date of DRHP and until the date of RHP. It will follow a prudent dividend policy post listing based on its earnings and future prospects.
Merchant Banker’s Track Records:
The four BRLMs associated with the offer have handled 24 pubic issues in the past three years, out of which 6 issues closed below the issue price on the listing date.
India’s stock markets are getting matured to match the global market’s behaviour. The recent saga of Zomato may see a re-run of history for this food segment loss-making enterprise that has been on its footprint expansion mode. Though the financial parameters and negative P/E is not on the radar for this issue, it will play just on the sentimental count for a while. Hence cash surplus/risk seekers may consider investing in this fancy foods outlet most preferred by today’s generation.
The original review has been authored by Dilip Davda, appears on chittorgarh.com and is available here
Mumbai-based Glenmark Life Sciences plans to launch its IPO on 27 July for subscription. The company is a developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs). Here are 10 key things you need to know before investing in Glenmark Life IPO.
1 Offer Structure
Like most public offers this season, Glenmark Life IPO will involve issuance of new shares as well as a sale by existing shareholders. The company aims to raise INR1,060 crore by issuing fresh shares.
In addition, 63,00,000 shares will be sold by its promoter Glenmark Pharmaceuticals.
2 Offer Pricing
Glenmark Life Sciences has filed its Red Herring Prospectus (RHP) and has revealed offer pricing in the range of INR695 – 720 per share.
TCPCL is a niche global player in specialty chemicals with SDAs in centre stage.
It has posted growth in its top and bottom lines for the past three years.
The issue is priced reasonably compared to listed peers.
Globally renowned client list with long term relations.
ABOUT COMPANY:
Tatva Chintan Pharma Chem Ltd. (TCPCL) is a specialty chemicals manufacturing company engaged in the manufacture of a diverse portfolio of structure-directing agents (“SDAs”), phase transfer catalysts (“PTCs”), electrolyte salts for supercapacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (“PASC”). The Company is the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second-largest position globally. (Source: F&S Report)
In addition, TCPCL is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. (Source: F&S Report) As a manufacturer of specialty chemicals, it focuses on the application of its products which form a key ingredient to customers’ manufacturing and industrial processes. For instance, SDA and PTC products have various applications in green chemistry, which is pertinent considering the growing focus on green and sustainable technologies.
The company continuously strives to improve processes and infrastructure to help reduce its impact on the environment and has accordingly, undertaken various ‘green’ chemistry processes such as electrolysis. Considering the wide application of its products, it serves customers across various industries, including the automotive, petroleum, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care and flavour and fragrances industries.
Apart from its customers in India, the company also exports products to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK. During the Fiscals ended March 31, 2019, 2020, and 2021, exports of products amounted to Rs. 143.52 cr., Rs. 202.02 cr. and Rs. 211.99 cr. which accounted for 69.57%, 76.74%, and 70.58%, of its revenue from operations, respectively. As of March 31, 2021, its portfolio had 154 products in four categories i.e. SDAs, PTCs, Electrolyte Salts and Pharma/Agri intermediates.
TCPCL’s customers include Merck, Bayer AG, Asian Paints Ltd., Ipox Chemicals KFT, Laurus Labs Ltd., Tosoh Asia Pte. Ltd., SRF Limited, Navin Fluorine International Limited, Oriental Aromatics Ltd., Atul Limited, Otsuka Chemical (I) Pvt Ltd., Meghmani Organics Limited, Divi’s Laboratories Limited, Hawks Chemical Company Limited, Firmenich Aromatics Prod. (I) Pvt. Ltd., Jiangsu Guotai Super Power New Materials Co., Ltd. and Jade Chem Co. Ltd.
ISSUE DETAILS / CAPITAL HISTORY:
To part finance its need for funding capital expenditure for expansion of its Dahej facility (Rs. 147.10 cr.), up-gradation of its R & D facility (Rs. 23.97 cr.) and general corpus funds, TCPCL is coming out with a maiden IPO of Rs. 500 cr. comprising of fresh equity issue worth Rs. 225 cr. (2077556 shares) and an offer for sale (OFS) of Rs. 275 cr. (2539244 shares). The company will be issuing approx. 4616800 shares of Rs. 10 each on the basis of the upper price band. TCPCL has fixed a price band of Rs. 1073 – Rs. 1083 per share having a face value of Rs. 10. The issue opens for subscription on July 16, 2021, and will close on July 20, 2021. Minimum application is to be made for 13 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 20.83 % of the post issue paid-up capital of TCPCL. The company has allocated an IPO quota of 50% for QIBs, 15% for HNIs and 35% for retail investors.
Book Running Lead Managers (BRLMs) to this issue are ICICI Securities Ltd. and JM Financial Ltd. while Link Intime India Pvt. Ltd. is the registrar to the issue.
TCPCL’s entire equity is issued at par so far. It has also issued bonus shares in the ratio of 1 for 2 in March 2001, 1 for 1 in March 2006, 12 for 10 in March 2009 and 1.5 for 1 in March 2021.
The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 0.91, Rs. 1.11, Rs. 1.59, Rs. 1.65, Rs. 2.49, Rs. 2.69, Rs. 2.87, Rs. 3.06 and Rs. 4.00 per share. Post-IPO, TCPCL’s current paid-up equity capital of Rs. 20.09 cr. will stand enhanced to Rs. 22.17 cr. Based on the upper price band, the company is looking for a market cap of Rs. 2400.48 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, TCPCL has reported turnover/net profits of Rs. 206.80 cr. / Rs. 20.54 cr. (FY19), Rs. 264.62 cr. / Rs. 37.79 cr. (FY20) and Rs. 306.29 cr. / Rs. 52.26 cr. (FY21). Thus it has posted growth in top and bottom lines for the past three fiscals. It has posted a CAGR of 21.70% in top lines and a CAGR of 59.50% in bottom lines. Its debt-equity ratio stood at 0.54 as of March 31, 2021.
For the last three fiscals, TCPCL has posted an average EPS of Rs. 20.99 and an average RoNW of 30.75%. The issue is priced at a P/BV of 13.11 based on its NAV of Rs. 82.62 as of March 31, 2021, and at a P/BV of 6.14 based on its post-IPO NAV of Rs. 176.39 (based on the cap price).
If we attribute FY21 earnings on fully diluted post issue equity, then the asking price is at a P/E of around 45.95 and thus the issue is reasonably priced as the industry composite is around 56 as per RHP data.
COMPARISON WITH LISTED PEERS:
As per the offer documents, TCPCL has shown Aarti Ind., Navin Fluorine, Alkyl Amines, Vinati Organics and Fine Organics as its listed peers. They are currently trading at a P/E of 60.43, 75.53, 65.61, 73.36 and 80.79 respectively (as of July 13, 2021). However, they are not truly comparable on an apple to apple basis.
DIVIDEND POLICY:
In the last three fiscals, TCPCL has paid a dividend of 50% (on pre-bonus equity) for FY21 only. It will adopt a prudent dividend policy post listing based on its financial performance and future prospects.
MERCHANT BANKER’S TRACK RECORDS:
The two BRLMs associated with the offer have handled 33 public issues in the past three years, out of which 11 issues closed below the issue price on the listing date.
CONCLUSION / INVESTMENT STRATEGY
The company is in a fast forward mode and the issue is reasonably priced. The green chemical industry is fancied by investors across the board. Investment may be considered for short to long term rewards.
The original review was written by Dilip Davda, appears on chittorgarh.com and is available here.
CSTL is a global player with niche techno developed products.
Last three fiscals it has posted remarkable performance.
This is a dividend-paying company since FY12.
Based on financial parameters, the issue is fully priced.
Investment may be considered with a long term perspective.
ABOUT COMPANY:
Clean Science & Technology Ltd. (CSTL) is among the few companies globally-focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost-competitive (Source: F&S Reports). This has enabled it to emerge as the largest manufacturer globally of certain speciality chemicals in terms of installed manufacturing capacities as of March 31, 2021 (Source: F&S Reports). Some of these technologies have been developed and commercialized for the first time globally (Source: F&S Reports). The company continued to focus on product identification, process innovation, catalyst development, the significant scale of operations as well as measures towards strategic backward integration have all contributed to its success as one of the fastest-growing and among the most profitable speciality chemical companies globally (Source: F&S Reports).
CSTL manufactures functionally critical speciality chemicals such as Performance Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and DCC), and FMCG Chemicals (i.e. 4-MAP and Anisole). Within 17 years of incorporation, it has grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms of installed manufacturing capacities as of March 31, 2021 (Source: F&S Reports).
CSTL’s speciality chemicals have a wide range of applications that cater to a diverse base of customers across the industries globally.
SMEL is one of the leading integrated metal producing and profit-making company.
It has a well-diversified product portfolio in metal with the captive power plant.
It suffered a setback for FY20 on account of expansion underway and higher provision.
The issue is fully priced based on its financial data.
Investors may consider an investment with a long-term perspective.
ABOUT COMPANY:
Shyam Metalics And Energy Ltd. (SMEL) is a leading integrated metal producing company based in India (Source: CRISIL Report) with a focus on long steel products and ferroalloys. It is amongst the largest producers of ferroalloys in terms of installed capacity in India, as of February 2021 (Source: CRISIL Report). The company has the ability to sell intermediate and final products across the steel value chain. As of March 31, 2020, SMEL was one of the leading players in terms of pellet capacity and the fourth-largest player in the sponge iron industry in terms of sponge iron capacity in India (Source: CRISIL Report).
The company primarily produces intermediate and long steel products, such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferroalloys products with a specific focus on high margin products, such as customised billets and specialised ferroalloys for special steel applications. Its TMT and structural products are sold under the brand ‘SEL’ and logo.
It also undertakes conversion of hot rolled coils to pipes, chrome ore to ferrochrome and manganese ore to silico manganese for an Indian steel conglomerate. The company is also currently in the process of further diversifying its product portfolio by entering into the segments, such as pig iron, ductile iron pipes and aluminium foil.
Gurugram based Sona BLW Precision Forgings – one of India’s leading mission-critical automotive systems and components manufacturers – is planning to launch its maiden public offer later this month. The company filed its draft red herring prospectus (DRHP) with SEBI in February 2021 and received approval in May 2021. Here are few key points you need to know about the company and its business.
#1 Fresh + OFS
Sona BLW Precision Forgings IPO will involve mobilization of INR6,000 crores. The IPO will consist of a fresh issue of equity shares worth INR300 crore and an offer for sale (OFS) amounting to INR5,700 crores by existing shareholders.The capital raised through fresh issues is proposed to be used for repayment/pre-payment of INR225 crores borrowings availed by the company and general corporate purposes.
#2 Capital Structure
Singapore VII Topco III is the major shareholder in the company with a 66.28% equity stake. Singapore VII Topco III is an affiliate of global private equity major Blackstone Group. The remaining stake is held by Sona Autocomp Holding Private Limited. Sona Autocomp is controlled by Sunjay Kapur who has vast experience in the automotive industry and also serves as the chairman of Sona BLW Precision Forgings.
Mumbai-based Glenmark Life Sciences plans to launch its IPO on 27 July for subscription. The company is a developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs). Here are 10 key things you need to know before investing in Glenmark Life IPO.
