Thursday, August 05, 2021: Chemplast Sanmar Limited (‘CSL’ or the ‘Company’), a specialty chemicals manufacturer in India with focus on specialty paste PVC resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors, proposes to open its Initial Public Offering (“Offer”) on Tuesday, August 10, 2021.

The Price Band of the Offer has been fixed at Rs. 530 to Rs. 541 per Equity Share. Bids can be made for a minimum of 27 Equity Shares and in multiples of 27 Equity Shares thereafter.

The Offer consists of equity shares of face value of Rs. 5 each (“Equity Shares”) of Chemplast Sanmar Limited aggregating up to Rs. 38,500 million (the “Offer”). The offer comprise of a fresh issue aggregating up to Rs. 13,000 million by the Company (the “Fresh Issue”) and an offer for sale aggregating up to Rs. 24,634.40 million by Sanmar Holdings Limited (“SHL” or the “Promoter Selling Shareholder”), and up to Rs. 865.60 million by Sanmar Engineering Services limited (“SESL” or the “Promoter Group Selling Shareholder”).

This is an Offer in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made through the Book Building Process in terms of Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company and the Selling Shareholders in consultation with the GCBRLMs and BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, (“Anchor Investor Portion”) out of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. If at least 75% of the Offer cannot be Allotted to QIBs, the Bid Amounts received by the Company shall be refunded.

Further, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are mandatorily required to utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA accounts and UPI ID in case of RIBs using the UPI Mechanism, as applicable, pursuant to which their corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or by the Sponsor Bank under the UPI Mechanism, as the case may be, to the extent of the respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA Process.

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards (i) Early redemption of NCDs issued by the Company, in full (“NCD Redemption”); and (ii) General corporate purposes.

ICICI Securities Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited, Ambit Private Limited, BOB Capital Markets Limited and HDFC Bank Limited are the Global Co-ordinators and Book Running Lead Managers to the Offer. IndusInd Bank Limited and YES Securities (India) Limited are the Book Running Lead Managers to the Offer.

The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on BSE and NSE.