Chemplast Sanmar Ltd (CSL) is a leading specialty chemical manufacturer in India. The company is engaged in the manufacturing of specialty paste PVC resin, starting materials, and intermediates for agro-chemical, pharmaceuticals, agro-chemical, and fine chemical sectors. It also produces other types of chemicals such as Caustic Soda, Chlorochemicals, Hydrogen Peroxide, Refrigerant gas, and Industrial Salt.It has four manufacturing facilities, among which, 3 are situated at Mettur, Berigai, and Cuddalore in Tamil Nadu, and one is located in Puducherry at Karaikal. Sanmar Holdings Limited is the promoter of the company. The Company is a part of the SHL Chemicals Group, which in turn is a constituent of the Sanmar Group, one among the oldest and most prominent corporate groups in South India region. Fairfax India Holdings Corporation (“Fairfax”), a well-known international investor led by Prem Watsa, based in Canada, has invested, through FIH Mauritius Investments Ltd, in the SHL Chemicals Group since 2016.

For year/ period ended ( in Cr.)

• It is the largest manufacturer of specialty paste PVC resins in India in terms of installed production capacity
• The Company is the 3rd largest manufacturer of caustic soda and the largest manufacturer of hydrogen peroxide in South India
• A part of the SHL Chemicals Group, one of the most prominent corporate groups in South India
• A vertically integrated business model with a focus on quality manufacturing
• It has a strong management team with extensive experience in the chemicals industry and a track record of operational excellence

The Company proposes to utilise the net proceeds towards funding the following objects:

• Early redemption of NCDs issued by the company in full
• Meet general corporate purposes

At the upper of Rs 541, the stock is valued at 18 times P/E multiple. Which is lower than it’s nearest listed peers. After a decade the company is trying to relist its shares with 7.5 times higher valuations. Though the issue appears reasonably priced, it is due to the non-convincing super performance of FY21 and sustainability is a major concern. Hence, investors may consider this IPO for long term perspectives.