The Mumbai-based company’s IPO comprises equity shares of the face value of Rs 5 each and a fresh issue aggregating up to Rs 120 crore, with a reservation of up to 77,000 equity shares for employees and an offer for sale of up to 12,157,000 equity shares, by Dhiresh Shashikant Gosalia, a promoter entity, with 86.53 per cent pre-offer equity share capital in the company, according to the draft red herring prospectus (DRHP).
Proceeds from the fresh issuance of shares will be used to the extent of Rs 90 crore to pay off borrowings availed by its subsidiary besides general corporate purposes.
Additionally, the company may consider a further issue of equity shares including a private placement aggregating up to Rs 24 crore. If such placement is completed, the fresh issue size will be reduced.
The company claimed it is one of the leading manufacturers of specialty coating emulsions (SCE) and water-based pressure sensitive adhesives (PSA) in tape and label segments in terms of sales in India, with a 30 per cent market share as a leading SEC supplier to the Indian paint sector.
Its products are used in various end-user industries, such as paints, packaging, and chemicals for construction, textiles, leather, carpet and paper. The company has a strong foothold in high-growth markets across Asia-Pacific, the Middle East and Africa, for both SCE and PSA products and one of the largest exporters of Polymers of Vinyl Acetate and Acrylic Polymers which are used in SCEs and PSAs, it said. It has exported 6,687 tons of Polymers of Vinyl Acetate and 38,888 tons of Acrylic Polymers during Fiscal 2021, which is 52.9 per cent and 36.1 per cent respectively of the total export of the same from India.
There are no direct listed comparable peers, but its business is similar to that of Apcotex Industries, Fine Organic Industries, BASF India, Galaxy Surfactants, Aarti Industries and .
, Indigo Paints, Kamdhenu Paints, JSW Paints, Nippon Paints, Shalimar Paints, Cosmos Twisters, Cellotape, Mexim Adhesives, Apollo Paints, Kansai Nerolac, Moon Star Paints, Caparol Paints, Lalan Printing and Packaging, Tuftape, Well Accessories, and Western Paper Industries among its customers.
Axis Capital and JM Financial are the book running lead managers to the issue, while Link Intime will be the registrar.