Freshworks may announce IPO soon
Freshworks may announce IPO soon
Freepik

Chemplast Sanmar Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 3,500 crore through an initial share sale.

The initial public offer (IPO) comprises a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale of Rs 2,000 crore, according to draft red herring prospectus (DRHP).

The offer for sale comprises the sale of Rs 1,850 crore by Sanmar Holdings Ltd and Rs 150 crore by Sanmar Engineering Services Ltd.

Chennai-based Chemplast Sanmar is a leading specialty chemicals manufacturer with a focus on specialty paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical, and fine chemicals sectors.

The company said it would utilise an aggregate amount of Rs 1,238.25 crore from the net proceeds towards early redemption of the non-convertible debentures (NCDs) issued by it. In addition, funds will also be used for general corporate purposes.

"The early redemption of the NCDs in full will help reduce our outstanding in indebtedness and debt servicing costs, assist us in maintaining a favourable debt to equity ratio and enable utilisation of our internal accruals for further investment in business growth and expansion," the company said in the draft papers.

"In addition, we believe that our improved leverage ratio, consequent to such redemption of NCDs, will improve our ability to raise debt in the future to fund potential business development opportunities and plans," it added.

Also, the company expect to achieve the benefits of listing the equity shares on the stock exchanges which, it believe, will result in the enhancement of its brand name and creation of a public market for its equity shares in India.

Chemplast Sanmar was delisted nearly a decade from the stock exchanges.

It was delisted from BSE, NSE, and MSE with effect from June 25, 2012, June 18, 2012, and June 25, 2012, respectively, according to draft papers.

ICICI Securities, Axis Capital, Credit Suisse Securities (India) Private Ltd, IIFL Securities, Ambit, BOB Capital Markets, HDFC Bank, IndusInd Bank, and Yes Securities have been appointed as merchant bankers for advising the company on the IPO.

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