Chemspec Chemicals Limited plans for IPO files DRHP with SEBI

Chemspec Chemicals Limited ('Chemspec' or the 'Company'), one of the leading manufacturers globally of critical additives for FMCG ingredients used in skin and hair care products, and intermediates for pharmaceutical APIs used in anti-hypertension drugs, filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for its Initial Public Offering (IPO).

The IPO consists of an offer for sale aggregating up to ₹7,000.00 million, comprising up to ₹2,334.00 million by Bhaichand Amoluk Consultancy Services LLP, up to ₹2,333.00 million by Mitul Vora and up to ₹2,333.00 million by Rushabh Vora.

Chemspec is one of the largest manufacturers of UV absorbers globally and is among the top two global manufacturers of personal care ingredients catering to skin and hair care. The Company is also the largest manufacturer of 'piroctone olamine' in India, and the largest producer of 'chemilide' (an anti-bacterial ingredient) in the world with an approximate market share of 70%. They manufacture products at their production facility at Taloja, Maharashtra, which has been audited and approved by the United States Food and Drug Administration (US FDA), making them amongst a few global companies in the pharmaceutical intermediates and FMCG segments that is registered with US FDA. This in turn, helped boost the Company's reach and business with leading American brands. Since incorporation over 40 years ago, they have significantly expanded business and scale of operations. In the last three Fiscals, global distribution network of Chemspec was spread across 43 countries in North America, Europe, the APAC region (including Japan), the Middle East and Africa.

JM Financial Limited and Axis Capital Limited are the Book Running Lead Managers to the issue.

Source : Equity Bulls

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