Chemplast Sanmar
Mainboard₹3,850 Cr issue
-2.96%
Listing gain over issue price
Issue size
₹3,850 Cr
1 lot at cut-off
₹14,607
Lot size
27shares
Open
10 Aug 2021
Close
12 Aug 2021
Allotment
18 Aug 2021
Listing
24 Aug 2021
Listing performance
Issue price
₹541
Listed at
₹525
Listing-day close
₹535.60
Latest price
₹183.17
Close on 23 Oct 2026
Listing gain
-2.96%
Return since issue
-66.14%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Aug 2021 – 12 Aug 2021
- Listing date
- 24 Aug 2021
- Face value
- ₹5 per share
- Issue price
- ₹541 per share
- Lot size
- 27 shares
- Total issue size
- ₹3,850 Cr
- Market cap at offer price
- ₹8,554 Cr
- Promoter holding
- 100.00% → 54.99% pre-issue → post-issue
- ISIN
- INE488A01050
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Ambit Pvt.Ltd.
- Registered office
- 9, Cathedral Road, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,20,24,029 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 27 shares per lot, in multiples, at ₹541
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 27 | ₹14,607 |
| Retail (max) | 13 | 351 | ₹1,89,891 |
| S-HNI (min) | 14 | 378 | ₹2,04,498 |
| S-HNI (max) | 68 | 1,836 | ₹9,93,276 |
| B-HNI (min) | 69 | 1,863 | ₹10,07,883 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
3,20,24,029
Anchor portion
₹1,733 Cr
at ₹541 per share
Valuation and performance
Valuation at offer price
₹541 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹8,554 Cr |
About Chemplast Sanmar
Chemplast Sanmar Limited (CSL) was originally incorporated on March 13, 1985 as Urethanes India Limited and commenced operations in April 1985. The company underwent several transformations including the amalgamation of Chemicals and Plastics India Limited (CPIL) in 1991 and a name change to Chemplast Sanmar Limited in 1995. CSL is the largest manufacturer of specialty paste PVC resin in India by installed production capacity and also the third largest manufacturer of caustic soda and largest manufacturer of hydrogen peroxide in South India. The company operates four manufacturing facilities located in Tamil Nadu and Puducherry, generating revenues from specialty chemicals including specialty paste PVC resin, caustic soda, chloromethanes, hydrogen peroxide, and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. CSL has acquired 100% equity interest in Chemplast Cuddalore Vinyls Limited (CCVL), the second largest manufacturer of suspension PVC resin in India.
Company Analysis
from DRHPChemplast Sanmar Limited is a leading specialty chemicals manufacturer in India specializing in specialty paste PVC resin, custom manufacturing of starting materials and intermediates, caustic soda, hydrogen peroxide, and chloromethanes.
Chemplast Sanmar Limited (CSL) was originally incorporated on March 13, 1985 as Urethanes India Limited and commenced operations in April 1985. The company underwent several transformations including the amalgamation of Chemicals and Plastics India Limited (CPIL) in 1991 and a name change to Chemplast Sanmar Limited in 1995. CSL is the largest manufacturer of specialty paste PVC resin in India by installed production capacity and also the third largest manufacturer of caustic soda and largest manufacturer of hydrogen peroxide in South India. The company operates four manufacturing facilities located in Tamil Nadu and Puducherry, generating revenues from specialty chemicals including specialty paste PVC resin, caustic soda, chloromethanes, hydrogen peroxide, and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. CSL has acquired 100% equity interest in Chemplast Cuddalore Vinyls Limited (CCVL), the second largest manufacturer of suspension PVC resin in India.
Specialty chemicalsPVC resin manufacturingCustom manufacturingPharmaceutical intermediatesAgro-chemical intermediatesFine chemicals intermediatesCaustic sodaHydrogen peroxideChloromethanes
Objects of the Issue
- Early redemption of Non-Convertible Debentures issued by our Company, in full ₹12,382.50 million p.26
- General corporate purposes p.26
- Early redemption of Non-Convertible Debentures issued by our Company, in full ₹12,382.50 million p.88
- General corporate purposes p.89
- Not specified in this document excerpt
Issue Structure
- Total Issue
- ₹35,000 million
- Fresh Issue
- ₹15,000 million
- Offer for Sale
- ₹20,000 million (comprising ₹18,500 million by Sanmar Holdings Limited and ₹1,500 million by Sanmar Engineering Services Limited)
- Face Value
- ₹5 per equity share
Business Model
CSL generates revenue through the manufacture and sale of specialty chemicals including specialty paste PVC resin, caustic soda, hydrogen peroxide, chloromethanes, and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors. For the nine months ended December 31, 2020, the company's cost of materials consumed comprised 31.04% of total expenses, with significant revenues from top 10 customers (38% of revenue from operations).
Business Segments
Manufacture and sale of specialty paste PVC resin; CSL is the largest manufacturer in India by installed production capacity
Custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors
Manufacture and sale of caustic soda; third largest manufacturer in South India by installed production capacity
Manufacture and sale of hydrogen peroxide; largest manufacturer in South India by installed production capacity
Manufacture and sale of chloromethanes; one of the oldest manufacturers in the market in India
Through wholly-owned subsidiary CCVL, manufacture and sale of suspension PVC resin; second largest manufacturer in India and largest in South India by installed production capacity
Specialty paste PVC resin is used to make flexible products such as artificial leather, gloves, tarpaulins, conveyor belts and coated fabrics. The company is one of only two producers of specialty paste grade PVC resin in India with capacity of 66 KTPA.
Primarily used by end-user industries to produce artificial leather, tarpaulin, gloves, conveyor belts and coated fabrics. CSL is the largest manufacturer of specialty paste PVC resin in India by installed capacity.
Custom manufacturing of starting materials and intermediates for multinational innovator companies in agrochemical, pharmaceutical and fine chemicals industry. The company provides services including process research, development, scale-up, analytical studies, plant engineering and commercial scale manufacturing.
Generated as a joint product in the manufacture of chlorine. Used by various industries such as textiles, paper and pulp, water treatment, alumina, chemicals, pharmaceuticals, soaps and detergents. CSL is the third largest manufacturer in South India.
Group of products including methyl chloride, methylene chloride (MDC), chloroform and carbon tetra chloride (CTC). MDC is used as solvent in pharmaceuticals, raw material in refrigerants and agrochemicals, and foam blowing agent. Chloroform used as solvent in pharmaceuticals and raw material in fluoropolymers. CTC used as raw material in cypermethrin insecticide and new generation refrigerants.
Primarily used for textile bleaching, paper and pulp bleaching, and water treatment. CSL is the largest manufacturer in South India with capacity of 34 KT, forming nearly 78% of capacity in the South.
Grade of PVC used by end-user industries to produce pipes and fittings, films and sheets, window and door profiles, wires and cables. CCVL is the second largest manufacturer of suspension PVC resin in India and largest in South India.
Manufacture and sale of Suspension PVC resins and Paste Grade PVC
Manufacture and sale of Caustic Soda, Chlorine and Chlorine derivatives
Manufacture and sale of Refrigerant Gases and Industrial Salt
Manufacture and sale of PVC resins, caustic soda, chlorochemicals, refrigerant gases, and industrial salt
Manufacture and sale of PVC Resin through conversion of imported Vinyl Chloride Monomer (VCM)
Manufacture and sale of Suspension PVC and Specialty PVC Resins through conversion of imported Vinyl Chloride Monomer (VCM)
Manufacture and sale of specialty paste PVC resin, which is used in products requiring high performance characteristics such as vinyl gloves and specialty products.
Custom manufacture of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors on a purchase order basis.
Third largest manufacturer of caustic soda in South India by installed production capacity. Primarily used in alumina, textile and paper industries.
One of the oldest manufacturers in the chloromethanes market in India. Primarily used in pharmaceutical and agro-chemical sectors.
Largest manufacturer of hydrogen peroxide in South India by installed production capacity. Plant was commissioned in Financial Year 2020.
Manufacture and sale of suspension PVC resin. This business was demerged to CCVL effective April 1, 2018 and was re-acquired effective March 31, 2021. CCVL is the second largest manufacturer of suspension PVC resin in India and largest in South India.
Manufacturing and sale of suspension PVC resin, a commodity chemical product, and related traded goods
SWOT Analysis
Strengths
- • Leading specialty paste PVC resin manufacturer by installed capacity(p.25)
- • Acquired second-largest suspension PVC resin manufacturer, largest in South India(p.25)
- • Strong position in caustic soda and hydrogen peroxide markets in South India(p.25)
- • Established presence across multiple chemical segments(p.25)
- • Strong credit ratings reflecting financial strength and operating performance(p.45)
- • Sole duopoly position in specialty paste PVC resin production in India with significant capacity advantage(p.102)
- • High market share in specialty paste PVC resin with only domestic competitor having significantly lower capacity(p.102)
- • Largest specialty paste PVC resin manufacturer in India by installed capacity(p.134)
- • Vertically integrated operations with internal manufacturing of key raw materials(p.136)
- • Market leadership in caustic soda and hydrogen peroxide in South India(p.134)
- • High barriers to entry and limited competition benefit existing manufacturers(p.135)
- • Strong focus on sustainability and zero liquid discharge operations(p.137)
- • Experienced management team with 30 years average industry experience(p.138)
- • Acquisition of CCVL adds second-largest suspension PVC resin manufacturer in South India(p.134)
- • Diversified product portfolio across multiple end-user industries(p.140)
- • Synergies from merger creating operational efficiency and cost reduction(p.162)
- • Productive utilization of pooled resources to address competition(p.162)
- • Qualified and experienced management team with technical expertise(p.170)
- • Established manufacturing operations across multiple locations with significant asset base(p.261)
- • Substantial property, plant and equipment base indicating production capacity(p.232)
- • Strong liquidity position maintained across periods(p.236)
- • Established manufacturing presence with substantial PP&E base(p.359)
- • Long-term supply agreements for key raw materials ensuring operational continuity(p.322)
- • Established relationships with key suppliers providing favorable credit terms(p.322)
- • Leading market position in specialty paste PVC resin manufacturing(p.398)
- • Dominant position in caustic soda and hydrogen peroxide production in South India(p.398)
- • Integrated business model for specialty paste PVC resin and chloromethanes production(p.399)
- • Established track record of financial performance(p.400)
- • Strong management team and Board composition(p.400)
- • Part of prominent Sanmar Group with international investor backing(p.400)
- • Sustainability and operational certifications across facilities(p.399)
Weaknesses
- • Heavy reliance on limited customer base(p.34)
- • CCVL has higher customer concentration(p.35)
- • Significant debt burden post-CCVL acquisition(p.26)
- • Lease for key salt extraction facility has expired(p.37)
- • No long-term contracts with key customers(p.34)
- • Pending lender consent for CCVL acquisition(p.39)
- • Significant outstanding indebtedness with restrictive covenants limiting operational flexibility(p.45)
- • Past non-compliance with financial covenants under financing arrangements(p.46)
- • Pending lender consent for certain working capital facilities affecting operational plans(p.45)
- • Dependence on quality accreditations which are valid for limited time periods and must be renewed(p.46)
- • Significant outstanding litigation including 286 cases against the company involving ₹1,615.42 million(p.47)
- • Uncertain land title in India with potential for third-party claims on manufacturing plant locations(p.46)
- • Corporate records and regulatory filings from early years are not traceable(p.50)
- • Promoter holds 98.81% shareholding with ability to exercise significant control post-IPO(p.48)
- • Dependence on limited number of suppliers for raw materials(p.146)
- • Lease for Vedaranyam Salt Field has expired and renewal pending(p.141)
- • Registered office held on lease basis expiring December 31, 2021(p.151)
- • Hydrogen peroxide plant capacity underutilized at 41% in nine months ended December 31, 2020(p.133)
- • Heavy dependence on joint venture and associate performance with recurring losses(p.201)
- • Significant pledged shareholding limiting control and creating refinancing risk(p.184)
- • Material uncertainty about going concern in associate company(p.197)
- • Substantial losses in group company TCI Sanmar impacting guarantor(p.188)
- • Significant promoter guarantees creating contingent liability exposure(p.187)
- • High debt burden relative to equity base(p.242)
- • Significant concentration of financial liabilities, with total borrowings representing substantial portion of balance sheet(p.262)
- • High finance costs indicating elevated debt servicing burden(p.230)
- • Negative profitability in joint venture investments creating drag on consolidated results(p.246)
- • Significant inventory write-down and asset impairment risk(p.291)
- • Negative equity position and net current liabilities(p.276)
- • High leverage and debt servicing burden(p.287)
- • Operational losses in prior periods(p.318)
- • Dependence on extended credit terms from suppliers(p.276)
- • Significant net current liability position indicating working capital stress(p.322)
- • High leverage with gearing ratio of 8.07 as of March 31, 2020(p.341)
- • Substantial inventory write-down reflecting asset impairment(p.322)
- • Significant loss after tax in FY2020 despite prior year profitability(p.322)
- • Covenant breach requiring post-year-end condonation from lenders(p.337)
- • Dependency on specialty paste PVC resin market segment(p.401)
- • Variable customer orders affecting production volumes and revenues(p.401)
- • Significant increase in finance costs affecting profitability(p.421)
- • Expired lease for Vedaranyam Salt Field under renewal process(p.399)
- • Profitability decline from FY2019 to FY2020(p.421)
- • Pending lender consent required for Offer(p.425)
- • Significant consolidated indebtedness(p.425)
- • Interest rate burden on floating-rate debt(p.426)
- • High finance costs constraining profitability(p.433)
- • Subsidiary indebtedness exposure(p.435)
- • Multiple pending litigation matters(p.445)
- • Tax contingent liabilities(p.426)
Opportunities
- • Large import dependence creates domestic production opportunity(p.25)
- • Strong specialty chemicals growth trajectory(p.25)
- • Expected growth in hydrogen peroxide demand(p.25)
- • Growing chloromethanes market(p.25)
- • Textile parks driving caustic soda demand(p.25)
- • Planned capacity expansion across product lines(p.38)
- • Specialty paste PVC resin demand projected to grow 5-7% CAGR with 45% of current demand being imported(p.103)
- • Strong rebound expected in specialty paste PVC resin demand with 15-17% on-year growth in FY2022(p.103)
- • Opportunity to reduce debt burden and improve leverage ratio through NCD redemption(p.88)
- • Specialty paste PVC resin demand expected to grow at 6-8% CAGR between FY2022 and FY2025(p.134)
- • Low per capita consumption of specialty paste PVC resin in India offers significant growth potential(p.104)
- • Custom manufacturing expected to grow at 12% CAGR between FY2020 and FY2025(p.134)
- • Government initiatives like Make in India to boost investment in artificial leather production(p.105)
- • Vinyl gloves demand surged 3-4 times post COVID-19(p.106)
- • Suspension PVC resin demand expected to grow at 7.5-8.5% CAGR between FY2021 and FY2025(p.134)
- • Caustic soda demand expected to grow at 4-5% CAGR between FY2020 and FY2025(p.134)
- • Chloromethanes demand expected to grow at 8-9% CAGR between FY2020 and FY2025(p.134)
- • Expansion and capacity optimization across multiple manufacturing facilities(p.208)
- • Suspension PVC capacity deficit in India creating market demand(p.214)
- • Acquisition of Chemplast Cuddalore Vinyls Limited to expand product portfolio into Suspension PVC(p.257)
- • Capacity expansion through capital work in progress projects(p.219)
- • Leveraging manufacturing expertise across multiple facility locations to increase market reach(p.261)
- • Strong demand for PVC outstripping installed capacity(p.276)
- • Recovery and profitability in current interim period(p.276)
- • Access to banking facilities for working capital needs(p.276)
- • Industry capacity deficit providing pricing and volume growth potential(p.322)
- • Recovery in petrochemical prices post-COVID providing margin expansion(p.322)
- • Extension of supplier credit terms providing working capital relief(p.322)
- • Strong projected growth for specialty paste PVC resin market(p.398)
- • Growing custom manufacturing demand from pharmaceutical and agrochemical sectors(p.398)
- • Growth opportunities in caustic soda market(p.398)
- • Projected growth in chloromethanes and hydrogen peroxide markets(p.398)
- • Acquisition of CCVL adding suspension PVC resin production capacity(p.398)
- • Post-COVID recovery and increased vinyl glove demand(p.401)
- • Planned expansion of manufacturing capacity(p.427)
- • Acquisition of CCVL for integrated chemical platform(p.428)
- • Recovery in demand post-COVID disruption(p.430)
- • Higher margins from margin recovery in nine months to December 2020(p.432)
Threats
- • COVID-19 pandemic causing operational disruptions(p.32)
- • High raw material import dependence and price volatility(p.44)
- • Vulnerability to crude oil price fluctuations(p.36)
- • Dependence on limited suppliers with supply disruption risks(p.36)
- • Geographic concentration risk in Tamil Nadu and Puducherry(p.33)
- • Seasonal variations in suspension PVC resin sales(p.41)
- • Increasing environmental and safety regulations(p.35)
- • Foreign exchange fluctuation risks(p.44)
- • Downgrade in company credit ratings may increase borrowing costs and constrain capital access(p.45)
- • Risk of adverse changes in Indian economic and political conditions beyond company control(p.52)
- • Regulatory changes including phasing out of hydrochlorofluorocarbons may adversely impact refrigerant gas business(p.52)
- • Foreign direct investment restrictions limiting ability to attract foreign investors(p.54)
- • Structural changes in global specialty paste PVC resin market with plant shutdowns affecting dynamics(p.103)
- • COVID-19 pandemic and other contagious diseases could adversely affect Indian economy and business(p.52)
- • Import dependence continues with 45% of specialty paste PVC demand met via imports(p.135)
- • Rationalization of specialty paste PVC capacities globally creates external supply competition(p.135)
- • Potential strikes and work stoppages by unionized employees(p.150)
- • Suspension PVC resin market dominated by well-established competitors with strong backward integration(p.131)
- • Ethylene prices subject to global commodity price volatility(p.107)
- • Competition from global custom manufacturing players in India(p.110)
- • COVID-19 pandemic impact on operations and asset valuations(p.213)
- • Significant volatility in petrochemical prices driven by crude oil fluctuations(p.213)
- • Financial distress in TCI Sanmar requiring debt restructuring(p.187)
- • Exposure to commodity price fluctuations for key raw materials like coal and methanol(p.243)
- • Foreign currency exchange rate volatility affecting operations(p.242)
- • COVID-19 pandemic impact on business operations, production and supply chains(p.267)
- • Tax contingencies and regulatory disputes creating potential cash outflows(p.249)
- • COVID-19 pandemic impact on operations and demand(p.275)
- • Volatility in petrochemical input prices(p.275)
- • Foreign exchange exposure on import parity pricing(p.299)
- • Contingent tax liabilities from indirect tax disputes(p.303)
- • Commodity price correlation risks in VCM-PVC business(p.299)
- • COVID-19 pandemic impact on demand and operations(p.322)
- • Volatility in crude oil and petrochemical prices affecting input costs(p.322)
- • Foreign exchange exposure impacting import-dependent operations(p.342)
- • Indirect tax disputes with material contingent liability(p.346)
- • Fragmented and competitive chemicals industry with pricing pressures(p.401)
- • Competitors with greater financial resources and R&D capability(p.401)
- • Dependence on government regulations affecting raw material availability(p.401)
- • Regulatory changes affecting operations and requiring capital expenditure(p.401)
- • Ongoing uncertainty from COVID-19 pandemic affecting recovery(p.401)
- • Subdued demand for caustic soda and hydrogen peroxide in key industries(p.401)
- • Dependence on cost-effective external funding for growth(p.401)
- • Exposure to foreign exchange volatility(p.426)
- • Commodity price volatility in ethylene and methanol(p.426)
- • Restrictive covenants from lenders limiting flexibility(p.425)
- • Event of default leading to asset acceleration(p.425)
- • Inflation risk impacting cost structure(p.427)
- • Regulatory and environmental compliance risks(p.444)
- • Liquidity risk from debt maturity obligations(p.425)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sanmar Holdings Limited | Promoter | 98.81% | — |
| Sanmar Engineering Services Limited | Promoter Group | 1.19% | — |
| Sanmar Holdings Limited | Promoter | 98.81% | — |
| SHL Chemicals Group | Holding company | — | — |
| Sanmar Group | Parent group | — | — |
| Fairfax India Holdings Corporation | Investor/Promoter Group | — | — |
| Sanmar Holdings Limited (SHL) | Promoter | 98.81% | — |
| Sanmar Holdings Limited | Holding Company | 98.81% | — |
| Sanmar Engineering Services Limited | Ultimate Holding Company | — | — |
| Sanmar Engineering Services Limited | Holding Company / Promoter | 100% | — |
| Sanmar Engineering Services Limited | Holding Company | 100% | 100% |
| Sanmar Engineering Services Limited | Holding Company/Ultimate Parent | — | — |
| Fairfax India Holdings Corporation | Investor | — | — |
| Sanmar Holdings Limited | Promoter Selling Shareholder | — | — |
| Sanmar Engineering Services Limited | Promoter Group Selling Shareholder | — | — |
Leadership
Vijay Sankar · Chairman
Ramkumar Shankar · Managing Director
M Chandrasekar · Chief Financial Officer
M Raman · Company Secretary and Compliance Officer
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
Chemplast Sanmar IPO FAQs
What is the lot size of Chemplast Sanmar IPO?
The minimum lot size of Chemplast Sanmar IPO is 27 shares. One lot costs ₹14,607 at the cut-off price.
When does Chemplast Sanmar IPO open and close?
Chemplast Sanmar IPO opened for subscription on 10 Aug 2021 and closed on 12 Aug 2021.
What is the listing date of Chemplast Sanmar IPO?
Chemplast Sanmar IPO listed on 24 Aug 2021.