NEW DELHI: Specialty chemical company Anupam Rasayan has received markets regulator Sebi’s approval to raise Rs 760 crore through an initial public offer.
The company, which filed preliminary papers for the IPO (Initial Public Offer) with the watchdog in December, obtained its observation on February 26, as per the latest update with the Securities and Exchange Board of India (Sebi) showed.
Sebi’s observation is necessary for any company planning to launch public issues like IPO, follow-on public offer and rights issue.
Proceeds of the issue would be used mainly for repayment of debt, as per the Draft Red Herring Prospectus (DRHP) filed by Anupam Rasayan.
The Surat-based company has decided to reserve a portion of the offer for its employees and may consider a discount for eligible staff.
Anupam Rasayan commenced operations in 1984 with conventional products and now it makes speciality chemicals that involve multi-step synthesis and complex chemistries.
It has six multi-purpose manufacturing facilities based in Gujarat with a combined aggregate installed capacity of around 23,396 metric tonnes.
The company mainly caters to agrochemical, personal care and pharmaceutical sectors, which accounted for over 95 per cent of its revenues in 2019-20. Its clients include Syngenta Asia Pacific, Sumitomo Chemical Company and UPL Ltd.
Axis Capital, Ambit Private, IIFL Securities and JM Financial are the merchant bankers for the issue.