Chemcon Speciality Chemicals IPO – Schedule *(Tentative)*
??th Oct – Announcement of Price Band
??th Oct – Anchor Investors Allotment
??th Oct – Offer Opens
??th Oct – Offer Closes
??th Oct – Finalisation of Basis of Allotment
??th Oct – Unblocking of ASBA Accounts
??th Oct – Credit of Equity Shares to Depository Accounts
??th Oct – Commencement of Trading
Chemcon Speciality Chemicals IPO – Issue Information *(Tentative)*
Issue Opens on: ?? October 2020
Issue Closes on: ?? October 2020
Issue Type: Book Built Issue IPO
Issue Size: 98,00,000 Shares
Face Value: Rs.10/- per Share
Issue Price: Rs.295 – Rs.300 per Share
Discount: NIL
Market Lot: 50 Shares
Listing At: NSE, BSE
Equity Shares outstanding prior to the Issue = 3,17,77,760 Shares
Fresh Issue of 55,00,000 Shares @300/- = Rs.165.00Crs
Offer for Sale of 43,00,000 Shares @300/- = Rs.129.00Crs
Equity Shares outstanding after the Issue = 3,72,77,760 Shares
Category-wise Break up:
Anchor – 29,40,000 Shares = 88.20Crs
QIB – 19,60,000 Shares = 58.80Crs
NII – 14,70,000 Shares = 44.10Crs
RII – 34,30,000 Shares = 102.90Crs (Lot size: 50 = 68,600 Forms)
Total Issue – 98,00,000 Shares = 294.00Crs.
Subscription required for 1X
RII = 68,600 Forms
NII = 44.10 Crs
Chemcon Speciality Chemicals IPO – Financial Information (Basis of Valuation)
EPS for FY16-17 >>> Rs.00.89 (Page #82 of DRHP)
EPS for FY17-18 >>> Rs.08.30 (Page #82 of DRHP)
EPS for FY18-19 >>> Rs.13.54 (Page #82 of DRHP)
RoNW for FY16-17 >>> 10.44% (Page #83 of DRHP)
RoNW for FY17-18 >>> 49.20% (Page #83 of DRHP)
RoNW for FY18-19 >>> 44.94% (Page #83 of DRHP)
NAV as on March 31, 2019 was Rs.30.14 (Page #83 of DRHP)
Listed Industry Peer Group (Page #84 of DRHP): Aarti Industries, Vinati Organics, Sudarshan Chemical Industries, Atul, Paushak, Fine Organic Industries, Neogen Chemicals
Chemcon Speciality Chemicals IPO – *Market’s Current Estimates of oversubscription*:
RII = 6.00L Forms = 8.75X Applic. wise (Avg allotment of ~5.72 shares per lot)
NII = 5K Crs. = ~113.38X
Interest cost *@7.50%p.a.* for 7days = 43.15paise for 1X
Thus, for NII the costing = 113.38 X 43.15paise = Rs.48.92 per share (= GMP)
And, for RII the costing = 5.72 X 48.92 = Rs.280/- (= Kostak)
Chemcon Speciality Chemicals IPO – *GMP Estimated*
GMP 50 +/- 2
Kostak 275 +/- 25