Chemplast Sanmar has filed preliminary papers with the SEBI to raise Rs 3,500 crore through an initial public offer (IPO). The IPO comprises a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale of Rs 2,000 crore, according to the company’s Draft Red Herring Prospectus (DRHP) filed with the capital markets regulator.  

The offer for sale comprises sale of Rs 1,850 crore by Sanmar Holdings and Rs 150 crore by Sanmar Engineering Services. Chennai-based Chemplast Sanmar is a leading speciality chemicals manufacturer with a focus on speciality paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemical sectors. 

The company has said that it will utilise an aggregate amount of Rs 1,238.25 crore from the net proceeds towards early redemption of non-convertible debentures (NCDs) issued by it. In addition, funds will also be used for general corporate purposes. 

The company also expects to achieve the benefits of listing the equity shares on stock exchanges which, it believes, will result in enhancement of its brand name and creation of a public market for its equity shares in India. 

ICICI Securities, Axis Capital, Credit Suisse Securities (India), IIFL Securities, Ambit, BOB Capital Markets, HDFC Bank, IndusInd Bank and Yes Securities have been appointed as merchant bankers for advising the company on the IPO. 

Chemplast Sanmar was delisted nearly a decade from the stock exchanges. It was delisted from BSE, NSE and MSE with effect from June 25, 2012, June 18, 2012 and June 25, 2012 respectively, according to the draft papers.