Chemplast Sanmar lists at over 1% premium at Rs 550 on NSE

The IPO comprised a fresh issue of Rs 1,300 crore by the company, and an offer for sale of Rs 2,550 crore by promoters, Sanmar Holdings and Sanmar Engineering Services.

Chemplast Sanmar IPO comes nearly a decade after delisting from bourses.  The company was delisted from BSE, NSE and MSE with effect from June 25, 2012, June 18, 2012, and June 25, 2012, respectively.

Delisted Chemplast Sanmar comes back with an IPO; Should you be cautious?

Chemplast Sanmar (CSL) is a part of the Sanmar Holdings group, one of the oldest and most prominent corporate groups in the southern part of the country. The company is one of the leading manufacturers of specialty paste PVC resin in India. It has four manufacturing facilities: three in Tamil Nadu and one in Puducherry.

Angel Broking had given a Neutral rating to the IPO given concerns due to high debt on books and negative net worth despite having a positive outlook on the chemicals.

“We would recommend avoiding buying into the stock in case it falls below the issue price post listing given our concerns,” said Jyoti Roy - DVP- Equity Strategist, Angel Broking.