Anupam Chemicals: Good IPO for Investment

     Anupam Chemicals India Ltd., which produces specialty chemicals used in agriculture, medicine and personal use in its six units located in Surat, Gujarat. On March 12, the capital is coming to the market. Anupam is aiming to raise Rs 760 crore through the sale of shares on a bid (bid) basis at a price of Rs 553-555.

    Was founded in Surat in 1984 as a common firm. Anand Desai, Dr. Kiran C. Patel, Mona A. Desai are the major promoters. Two firms RIRCPL and KPILLC were made shareholders by giving a stake in Anupam. The company started small business but gradually expanded.

    At present it has six production units, out of which four units are located in Sachin and two factories in Jhagadia. Their total installed capacity is 23438 tonnes annually. Anupam produces 36 types of chemicals in its units. Apart from the domestic market, these chemicals are also exported to many countries including Europe, Japan and America. Anupam enjoys the status of an export house in return for performing well on the export front.

     Anupam Rasay registered a profit after tax of Rs 49 crore on an income of Rs 521 crore in 2018-19. Whereas in 2019-20, there was an income of Rs 539 crore and profit of Rs 53 crore. Income for the first half of the current financial year 2020-21 was Rs 374 crore and profit after tax was Rs 26.48 crore. There is a plan to raise a total of Rs 760 crore through the upcoming IPO, out of which Rs 556 crore will go towards the payment of outstanding debt. The remaining Rs 204 crore will be spent on other corporate items.

     The company has debt of over Rs 814 crore including foreign currency loan and outstanding interest of about Rs 300 crore. Strangely, a woman promoter of the company has also jointly promoted 'K PILLC' in Delaware, USA, KPI has paid an interest of Rs 3.5 crore (about Rs 250 crore) to Anupam Chemicals. Have given a loan

     Obviously, the women promoter will also get interest. Anupam also has another promoter and managing director Anand Desai of RIRCPL. RIRCPL is also Anupam's promoter. What is the purpose of earning the loan and interest from Anupam by a promoter and the cross-holding of the Managing Director? The company will list its shares in BSE and NSE. Small investors will be able to apply till March 16 to participate in the bid with a payment of Rs 14985 for a minimum of 27 shares.

     Prantesh Narayan Bajpai

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