The Initial Public Offering (IPO) of specialty chemical manufacturer Archean Chemical Industries Ltd. will open for public subscription tomorrow i.e. Wednesday, November 9, 2022 and the three-day offering will end on Friday, November 11, 2022. The limit is fixed in the price 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.
As per market observers, the premium (GMP) of Archean Chemical shares is Today in Gray Market 73. The Company’s shares are expected to be listed on the major stock exchanges BSE and NSE on Monday, November 21, 2022.
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, including a joint venture between India Resurgence Fund, Piramal Group and Bain Capital. The company plans to utilize the net proceeds of the new issue for redemption of Non-Convertible Debentures (NCDs) issued by it.
“Arcion Chemicals is India’s leading specialty marine chemical manufacturer, producing and exporting bromine, industrial salt etc. In addition, they were India’s largest exporter of bromine and industrial salt by volume in FY 2011. Their EBITDA and PAT margins are on an upward trend. The asking P/E is around 26.54x (post fresh issue) at the upper band of the issue price. As a result, the IPO pricing appears reasonable and if the market remains stable, we can expect a higher level of subscriptions,” said Abhay Doshi, Co-Founder, Unlisted Arena.
Archean Chemical Industries is a leading manufacturer of specialty marine chemicals in India, and is focused on the production and export of Bromine, Industrial Salt and Sulphate of Potash to customers worldwide. It produces its products from its salt reserves in the Rann of Kutch, located off the coast of Gujarat, and manufactures the products at its facility near Hajipir in Gujarat.
IIFL Securities, ICICI Securities and JM Financial are the book-running lead managers of the public issue. Link Intime India has been appointed as the Registrar of IPOs.
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