NEW DELHI: Anupam Rasayan saw a tepid listing on Wednesday, as the share got listed at Rs 520 on NSE, a 6.31 per cent discount to its issue price of Rs 555
On BSE, the stock opened at Rs 534.70, down 3.66 per cent. The listing ceremony of the company took place at the BSE Convention Hall at 9 am earlier in the day.
Anupam Rasayan manufactures a variety of intermediates and ingredients for insecticides, fungicides and herbicides for agrochemical companies. Besides, it also produces anti-bacterial and ultraviolet protection ingredients for FMCG and pharma companies.
The recent market volatility had hit the grey market premium (GMP) of Anupam Rasayan shares. The premium for the unlisted shared had plunged 54 per cent to Rs 80 in the unofficial market on Tuesday from Rs 173 early last week.
The Rs 760 crore IPO, which was sold from March 12 to 16, had received 44.06 times bids, with the HNI quota (NII) receiving 97.42 times subscription, the QIB quota 65.74 times and the retail quota 10.77 times.
At the issue price, the scrip commanded a PE of 95.2 times trailing 12-month basis on a restated EPS of Rs 5.80. This is significantly higher than the peer average of 33 times.
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Analysts said considering the company’s 75 per cent capacity utilisation in the first nine months of FY21 and likely interest cost savings from debt repayment from IPO proceeds, earnings can potentially grow 35-40 per cent CAGR over FY20-23.
Despite factoring that, at the issue price, the scrip was valued at over 40 times FY23 earnings, which was expensive compared with its quality peers like SRF and PI Industries.