This post on Chemcon Speciality Chemicals IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Chemcon Speciality Chemicals IPO or not.
Related Posts : Chemcon Speciality Chemicals IPO Review
Chemcon Speciality Chemicals IPO: Grey Market Premium etc.
- 21-09-20 GMP Rs. 250
Chemcon Speciality Chemicals IPO: Anchor Investors
Chemcon Speciality Chemicals made allocation of 28,05,880 equity shares to 13 anchor investors at Rs 340 per share.These 13 anchor investors included ike Abakkus Emerging Opportunities Fund, HSBC Global Investment Funds, Mirae AMC, Kuber India Fund, Ashmore India Opportunities Fund, India Acorn Fund and Aurigin Master Fund. IDFC AMC, Tata AMC, ICICI Prudential.
Subscription: Chemcon Speciality Chemicals IPO ( x times)
| Day / X times | QIB | NII | Retail | Total |
| Day 3 | 113.54 | 449.14 | 41.21 | 149.33 |
| Day 2 | 1.37 | 3.50 | 22.94 | 12.62 |
| Day 1 | 0.00 | 1.24 | 9.83 | 5.19 |
| Tot Applications | ~ 2277025 | |||
| Appl wise Retail | 30.51 x |
Consolidated Brokerage Views on Chemcon Speciality Chemicals IPO
Angel Broking :”At the upper end of the price band, Company demands PE multiple of 22.1x on F.Y.20 basis. None of the listed chemical companies has the same business as Chemcon. Its specialty chemical peers such as Neogen Chemicals, Paushak, Atul and Aarti Industries are currently trading at P/E multiples of 57.0x, 37.6x, 29.6x and 35.6x respectively on FY20 EPS. Company return ratios and margins are better than most of its peers. We believe Company is clearly undervalued compared to its peers; a lot of value is left in the table. As we are positive on the future outlook for the industry as well as the company, we would recommend to “Subscribe” issue for long term as well as for listing gains.’
Hndu BusinessLine : “Why you can give a miss to Chemcon IPO.nGrowth uncertainty, volatile product prices and pending litigations are dampeners”
Capital Market : ” Score 45/100 ; At the higher price band of Rs 340, the offer is made at around 25.5 times its FY 2020 EPS of Rs 13.3 on a post-issue equity share capital of Rs 36.63 crore of face value of Rs 10 each. Currently most of the chemical companies are trading at high P/Es, mainly due to the fancy for the China replacement story in the chemicals sector. Only time will tell whether they will perform so well in future to justify these valuations.”
Choice Broking: “At the higher price band of Rs. 340 per share, Chemcon’s share is valued at a P/E multiple of 25.5x, which is at discount to the peer average of 40x.The company’s fundamentals look positive, but the promoter & promoter group’s corporate governance issue is making us cautious. The management has indicated that the company will not be impacted by any means, if outcome of the appeal is not favorable. Also the specialty chemical sector got re-rated in the last 5-6 months. Before re-rating, the above peers were available at lower valuations. Thus considering the above observations, we assign an “Subscribe with Caution” rating for the issue..”
Geojit: “At the upper price band of Rs340, CSCL is available at P/E of 25.5x on FY20, which is attractive when compared to peers. Considering healthy business performance, regular capacity expansions, strong customer base, expanding margin profile and improving outlook for the sector, we have a ‘SUBSCRIBE’ rating on this IPO.”
Motilal Oswal: “At the higher end of the price band, the issue is valued at 35x FY20 P/E, which seems fully priced in. However, we like the company, given its leadership position, integrated business model, panIndia presence and robust financials. We recommend Subscribe for Long Term to the IPO as CAMS enjoy first mover advantage, asset light business model and high entry barriers. Risk: (1) Top 5 clients contribute 71% to its revenues, (2) technological disruption and (3) data security & privacy..”
Religare : “The financial track record has been encouraging for the company with revenue and PAT CAGR of 37.6% and 21.7% respectively. Going forward, we believe the growth prospects looks promising for the company led by positive industry trends coupled with company’s constant focus on innovation, enhancing offerings and widening geographical reach. Further, it would continue to focus on in-organic opportunities which would aid growth momentum and widen its service offerings. On the valuation front, the company is valued at a P/E of 18.5x (post-issue) FY21 annualized EPS.One can invest in the company for long term.”
SP Tulsiyan Website: “Potential corporate governance issues with the promoter group is a red flag. On the other hand, market leader increasing capacity, high margin business, low equity, supported by healthy demand tailwinds in pharma chemicals make the issue attractive over short-to-medium term. However, long term may not be as attractive on valuation. Thus, one can apply with a short-to-medium term outlook, but it may not qualify as a portfolio pick.”
MORE WILL BE ADDED AS THEY BECOME AVAILABLE
Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above infoimration is collated from various online sources and is for educational purpose only. Please visit indidivual brokearge sites to read the actual reports. Please donot make ypur investkent decisions based on this info as it is not completre amd exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.