IPO Details
RHP/DRHPIssue Date
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Investment/lot
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Price Range
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Lot Size
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IPO Size
N/A
Schedule of Asha Resins IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Asha Resins IPO
Asha Resins Limited IPO is an IPO of TBA. It consists of a fresh issue of up to 32,88,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.
Objective of Asha Resins IPO
- Funding of capital expenditure towards civil construction work in the existing premises of the factory.
- Funding of capital expenditure towards the installation of additional plant & machinery in the existing premises of the factory.
- General corporate purposes.
Asha Resins IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | -- |
Fresh Issue | 32,88,000 Equity Shares |
EPS (₹)For the year ended March 31, 2024 | 4.08 |
Asha Resins IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% |
Non-Institutional Investors (NIIs) | Not less than 15% |
Retail Individual Investors | Not less than 35% |
Industry Outlook
Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India's chemical sector, which is currently estimated to be worth US$22,000 crore in 2022, is anticipated to grow to US$30,000 crore by 2025 and US$1,00,000 crore by 2040.
Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world production of dyestuffs and dye intermediates. The Indian colourants industry has emerged as a key player with a global market share of ~15%.
Water and wastewater management is a promising subsector in India’s environmental technology segment. India’s demand for water is projected to be twice as much as the available supply by 2030. To overcome these challenges, public and private sector facilities have ambitious plans to develop comprehensive water and wastewater treatment and distribution infrastructure. Demand for high-end treatment technologies is growing in India. Various governmental initiatives, such as the Atal Mission for Rejuvenation and Urban Transformation, National Mission for Clean Ganga, Jal Jeevan Mission, and Community Drinking Water Schemes, contribute to the growth of the Indian water and wastewater treatment market.
Company Information
Asha Resins Limited is engaged in the business of manufacturing a wide range of water and wastewater treatment chemicals. Their extensive product portfolio includes ion exchange resins, biocides, dispersants, polyelectrolytes, settling agents, colour-removing chemicals, antiscalants, oxygen scavengers, hardness reducers, and cleaning chemicals, as well as sugar process chemicals, RO treatment chemicals, and fuel additives. Their products find diverse applications across various industries, particularly in water and wastewater treatment for sectors such as pharmaceuticals, oil and gas, chemicals, and textiles. Ion exchange resins are essential for treating water in various industries such as pharmaceuticals, oil & gas, and energy. They offer both cation and anion exchange resins, allowing them to provide customised solutions that fit specific needs. Further, they produce sugar process chemicals for the sugar industry such as evaporator antiscalant, mill sanitation chemical, viscosity reducer, scale softeners, and colour precipitants, etc., which enhance efficiency and improve the quality of sugar production.
Strengths of Asha Resins IPO
Diverse range of products
They manufacture a wide range of water treatment and industrial chemicals such as ion exchange resins, sugar process chemicals, biocide chemicals, water treatment chemicals, dispersants, fuel additives chemicals, polyelectrolytes, RO antiscalant and cleaning chemicals. Their products find diverse applications across various industries including chemical, energy and petrochemical industry. In order to expand the application of their products, the company is equipped with necessary facilities to develop and devise products as per the requirement of customers in various industries.
In-house manufacturing facility with quality control mechanism
They presently carry all their manufacturing operations through a manufacturing facility located at Pune, Maharashtra, which is spread across 65,000 square feet with an annual installed capacity of 1,560 metric tonnes. The facility is equipped with capabilities to develop and manufacture their product portfolio.
Long-standing relationship with their customers
Their products generally cater to customers who primarily are manufacturers of chemicals in the states of Maharashtra, Gujarat, Karnataka and Telangana. Owing to their strong customer relationships and service, they have been able to retain a number of their customers for a long period of time ensuring uninterrupted supplies of their products to them.
Risks of Asha Resins IPO
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They significantly depend upon a few of the raw material suppliers for the manufacturing of water & waste treatment chemicals. Volatility in the supply and pricing of their raw materials may have an adverse effect on their business, financial condition, and results of operations : They require substantial amounts of raw materials such as styrene, soda ash, ethylene dichloride, benzyl peroxide, salt, lime, HEDP, divinyl benzene, caustic lye, HCl, acrylic acid, ammonium bifluoride, Rodine, N.P. 95 PEG, and Liquid Doss OT, which are subject to significant price volatility. Any delay in the supply or delivery of raw materials to them by their suppliers may delay their process of manufacture and delivery of products to their customers and this may have an adverse effect on their business, cash flows and results of operations. Additionally, their inability to predict market conditions may result in them placing supply orders for inadequate quantities of such raw materials.
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Their business operations are majorly concentrated in certain geographical regions and any adverse developments affecting their operations in these regions could have a significant impact on their revenue and results of operations :They generate major domestic sales through their customers situated in Maharashtra, Gujarat, Karnataka, and Telangana. Such geographical concentration of their business in this region heightens their exposure to adverse developments related to competition, as well as economic and demographic changes in this region, which may adversely affect their business prospects, financial conditions, and results of operations.
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They are subject to competition from both organised and unorganised players in the market, which may significantly affect the fixation and realisation of the price for their product, which may adversely affect their business operation and financial condition : They operate in a rapidly consolidating industry. The strength of combined companies could affect their competitive position in all of their business areas. Furthermore, if one of their competitors or their customers acquires any of their customers or suppliers, they may lose business from the customer or lose a supplier, which may adversely affect their business, results of operations, and financial condition.
Asha Resins IPO Financials
Peers Comparison
| Parameter | Asha Resins Limited | Chembond Chemicals Limited |
|---|---|---|
Total Income for the year ended March 31, 2024 (₹ in crores) | 17.00 | 479.24 |
P/E | --- | 19.08 |
EPS (Diluted) (₹) | 4.08 | 33.02 |
Return on Net Worth (%) | 26.34 | 12.29 |
Book Value (₹) | 15.48 | 268.78 |
Anchor Investor Information
The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers: Hem Securities Limited
Registrar for the IPO : Cameo Corporate Services Limited
Business Model
The company earns its revenue through manufacturing a wide range of water and wastewater treatment chemicals.
Company Growth Trajectory
The Profit After Tax for the company stood at ₹3.729 crore in FY24 compared to ₹2.143 crore in FY23. EBITDA also saw an increase from ₹2.702 crore in FY23 to ₹4.618 crore in FY24.
Company Market Position
Owing to the company’s strong customer relationships and service, the company has been able to retain a number of its customers for a long period ensuring uninterrupted supplies of its products to them. They believe that their existing relationship with their customers represents a competitive advantage in gaining new customers andincreasing their business.
As on 31st March 2024, the company reflected a Profit After Tax of ₹3.729 crore, EBITDA at ₹4.618 crore, and Revenue from Operations at ₹16.406 crores.
Asha Resins Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 15.97 | 19.02 | 16.40 |
Profit Before Tax (₹ crores) | 2.41 | 2.86 | 5.01 |
Net profit / (loss) (₹ crores) | 1.77 | 2.14 | 3.72 |
EBITDA (₹ crores) | 2.27 | 2.70 | 4.61 |
EPS (₹) | 1.94 | 2.34 | 4.08 |
Asha Resins Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | 2.41 | 2.86 | 5.01 |
Net Cash from Operating Activities (₹ crores) | 1.88 | 0.02 | 2.55 |
Net Cash from Investing Activities (₹ crores) | -1.51 | 0.75 | -2.13 |
Net Cash from Financing Activities (₹ crores) | -0.07 | -0.06 | -0.00 |
Cash and Cash Equivalents (₹ crores) | 0.65 | 1.37 | 1.79 |
How To Check Allotment Status of Asha Resins IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Cameo Corporate Services Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Asha Resins Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Cameo Corporate Services Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Asha Resins Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Asha Resins IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Asha Resins IPO FAQs
Where can I read more about Asha Resins business?
You can read more about Asha Resins and its IPO from the company’s red herring prospectus (RHP) here.
What is the Asha Resins Limited IPO?
The Asha Resins Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Asha Resins IPO?
Cameo Corporate Services Limited is the registrar for this IPO.
