Archean Chemical IPO to open on Nov 9. Read the details about the price band, lot size, and company financials

Information on the upcoming Archean Chemical IPO

Archean Chemical IPO That Opens On 9 November 2022

9 November 2022 will see the opening of the Initial Public Offering of Archean Chemical Industries Limited. Before anything else, let us get a brief background on Archean Chemical.

Archean Chemical is the largest exporter of bromine, sulphate of potash and industrial salt in India, and specialises in marine chemical manufacturing. In FY 21 they exported 2.7 million MT of industrial salts. They are reported to have 24 domestic customers, and 18 other customers across 13 different countries. Their integrated production facility is located in Hajipir, near the Rann of Kutch brine fields in Gujarat. 

The bromine it produces is applied in pharmaceuticals, agrochemicals, water treatment, as a flame retardant and as an additive. It is used in oil and gas, and energy storage as well. Industrial salt is essential in chemicals and compounds while sulphate of potash has used in fertilizers and medicines. 

IPO Details 

The Archean Chemical IPO dates are from 9 November to 11 November 2022. The shares have a face value of Rs 2 and are offered within the price band of Rs 386 to Rs 407. Allotments will be made on 16 November 2022 with credit of shares to demat on 18 November 2022. 21 November 2022 is the stock’s listing date. 

Also Read: IPO valuation how IPO price is decided

The lot size is 36 shares. Retail investors can apply for up to 13 lots, which, at the upper price band, will amount to Rs 190,476. With this issue, the promoter holding will change from 65.58% to 55.04%. 

The issue size is a little under 35.93 crore shares, of which 19.78 crores are fresh issues while the remaining 16.15 crores are offer for sale. Fresh issue amounts to a value of Rs 805 crores while the total issue value is Rs 1462.3 crores. One of its promoters, Chemikas Speciality is looking to dispose of 20 lakh shares through an offer for sale. Besides, investors who have offered their shares include - Piramal Natural Resources - 38.35 lakh shares, India Resurgence Fund - 38.35 lakh shares, and India Resurgence Fund II 64.78 lakh shares. 

The stock will be listed in both NSE and BSE. Retail shares comprise 10% of the issue while 15% are for NII/HNI. The remaining 75% is for Qualified Institutional Buyers. 

The book-running lead managers for Archean Chemical IPO are IIFL Securities, ICICI Securities and JM Financial. Its registrar is Link Intime India.

Financials

As of the end of the financial year 2021-22, the total assets held by the company were 1529.68 crores. Its total revenue was Rs 1142.83 crores with a profit after tax of Rs 188.58 crores. The total borrowing of the company on the said date stood at Rs 921.87 crores.

Also Read: Multibagger SME IPOs deliver 8 times return in 2022 - Did you invest in in any of them

The company is planning to utilise the issue proceeds to partly or fully redeem the non-convertible debentures issued by the company, and for other general corporate uses. Presently the shares of Archean Chemical are attracting a grey market premium of Rs 75. 

Also Read: IPO lock-in period of these 11 stocks are expiring in November what should you do now buy hold or sell

9 November 2022 will see the opening of the Initial Public Offering of Archean Chemical Industries Limited. Before anything else, let us get a brief background on Archean Chemical.

Archean Chemical is the largest exporter of bromine, sulphate of potash and industrial salt in India, and specialises in marine chemical manufacturing. In FY 21 they exported 2.7 million MT of industrial salts. They are reported to have 24 domestic customers, and 18 other customers across 13 different countries. Their integrated production facility is located in Hajipir, near the Rann of Kutch brine fields in Gujarat. 

The bromine it produces is applied in pharmaceuticals, agrochemicals, water treatment, as a flame retardant and as an additive. It is used in oil and gas, and energy storage as well. Industrial salt is essential in chemicals and compounds while sulphate of potash has used in fertilizers and medicines. 

IPO Details 

The Archean Chemical IPO dates are from 9 November to 11 November 2022. The shares have a face value of Rs 2 and are offered within the price band of Rs 386 to Rs 407. Allotments will be made on 16 November 2022 with credit of shares to demat on 18 November 2022. 21 November 2022 is the stock’s listing date. 

Also Read: IPO valuation how IPO price is decided

The lot size is 36 shares. Retail investors can apply for up to 13 lots, which, at the upper price band, will amount to Rs 190,476. With this issue, the promoter holding will change from 65.58% to 55.04%. 

The issue size is a little under 35.93 crore shares, of which 19.78 crores are fresh issues while the remaining 16.15 crores are offer for sale. Fresh issue amounts to a value of Rs 805 crores while the total issue value is Rs 1462.3 crores. One of its promoters, Chemikas Speciality is looking to dispose of 20 lakh shares through an offer for sale. Besides, investors who have offered their shares include - Piramal Natural Resources - 38.35 lakh shares, India Resurgence Fund - 38.35 lakh shares, and India Resurgence Fund II 64.78 lakh shares. 

The stock will be listed in both NSE and BSE. Retail shares comprise 10% of the issue while 15% are for NII/HNI. The remaining 75% is for Qualified Institutional Buyers. 

The book-running lead managers for Archean Chemical IPO are IIFL Securities, ICICI Securities and JM Financial. Its registrar is Link Intime India.

Financials

As of the end of the financial year 2021-22, the total assets held by the company were 1529.68 crores. Its total revenue was Rs 1142.83 crores with a profit after tax of Rs 188.58 crores. The total borrowing of the company on the said date stood at Rs 921.87 crores.

Also Read: Multibagger SME IPOs deliver 8 times return in 2022 - Did you invest in in any of them

The company is planning to utilise the issue proceeds to partly or fully redeem the non-convertible debentures issued by the company, and for other general corporate uses. Presently the shares of Archean Chemical are attracting a grey market premium of Rs 75. 

Also Read: IPO lock-in period of these 11 stocks are expiring in November what should you do now buy hold or sell

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