High valuation vs growth prospects: Should you bid for Anupam Rasayan IPO?

While most analysts have assigned a Subscribe rating to the IPO, they have also flagged valuations concerns

The euphoria in the primary market is showing no signs of abating as the eleventh initial public offer (IPO) for the calendar year 2021 hit the Street today. The issue of Anupam Rasayan, a speciality chemicals firm, will run between March 12 and March 16. The company plans to raise Rs 760 crore at the upper price band.

The IPO, which is entirely an issue of fresh shares, is priced in the range of Rs 553-555 per share and investors can bid for a minimum of 27 shares and in multiples thereof. The company plans to utilise the proceeds for