Archean Chemical’s IPO Launching Today, Should You Subscribe? GMP, Other Details

The price is fixed in the range of the band from 386 407 per share for its initial share sale. IPO is expected to come at the upper end of the price band 1,462 crores.

The firm has allotted 1,61,67,991 equity shares to anchor investors 407 each, including transaction size 658 crore, according to a circular uploaded on the BSE website.

Archean Chemical IPO involves a fresh issue of equity shares, totaling up to 805 crore and Offer for Sale (OFS) of 1.61 crore shares by promoters and investors.

As per market observers, the premium (GMP) of Archean Chemical shares is Today in Gray Market 60. The Company’s shares are expected to be listed on the major stock exchanges BSE and NSE on Monday, November 21, 2022.

“High entry barriers in the specialty marine chemicals industry augurs well for the company. Market leading position, established infrastructure, integrated production with cost efficiencies, consistent financial performance, high entry barriers to a competitor, a In view of the experienced management team and attractive ratings, we recommend ‘Subscribing’ to this issue.

Archion is focused on the production and export of Bromine, Industrial Salt and Sulfate of Potash to customers around the world. It produces products from its saltwater reserves in the Rann of Kutch, located off the coast of Gujarat, and manufactures the products at its facility near Hajipir in Gujarat.

“At the higher price band, ACIL is seeking an EV/sales multiplier of 3.8x, which is in line with the peer average. The company’s operations are likely to be supported by import substitution, lower exports from China and lower cost of operations. Thus ACIL’s macros are positive, but demand growth remains a concern. Thus we assign a “Subscribe with caution” rating to this issue, said Choice Broking.