Archean Chemical Industries Ltd. IPO
Archean Chemical Industries Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹407
Issue Price
Listing Price
₹449
Listing Price
Listing Gains
+₹42.00 (+10.32%)
Listing Gains
IPO Details
Bidding Dates
09 Nov - 11 Nov '22
Bidding Dates
Min. Investment
₹13,896
Min. Investment
Lot Size
36.00
Lot Size
Price Range
₹386 - ₹407
Price Range
Issue Size
1,387 Cr
Issue Size
Subscription Rate
- Retail Individual Investor9.96x
- Non-Institutional Investor14.90x
- Qualified Institutional Buyers48.91x
- Employees
About Company
Archean Chemical Industries Ltd, a speciality marine chemical manufacturer, will float its initial public offering (IPO) on November 9. Incorporated on November 20, 2003, Archean Chemical Industries is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.
Archean is the largest exporter of bromine and industrial salt in India in Fiscal 2021. The company produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures products at its facility near Hajipir in Gujarat.
As of June 30, 2022, the company marketed its products to 18 global customers in 13 countries and 24 domestic customers. The company was the largest exporter of industrial salt in India, with exports of 2.7 million MT in Fiscal 2021.
Archean Chemical Industries IPO will open for subscription on November 9 and close on November 11. The company has fixed the price band for the issue at Rs 386 to Rs 407 per share. At the upper price band, the company plans to raise Rs 1,462.31 crore from the IPO, which comprises of fresh issue of equity shares aggregating upto Rs 805 crore and an offer for sale (OFS) of 1,61,50,000 equity shares.
The company proposes to utilise the net issue proceeds towards redemption or earlier redemption of NCDs and general corporate purposes.
Important Dates - Archean Chemical IndustriesIPO
| Application opens on | 9th November 2022 |
| Last date of application | 11th November 2022 |
| Date of Allotment | 16th Novemberber 2022 |
| Refund begins from | 17th Novembber 2022 |
| Credit of shares to Demat | 18th November 2022 |
| Listing date | 21th November 2022 |
Why should you invest in Archean Chemical Industries Ltd. IPO?
Archean Chemical Industries is a leading specialty marine chemical manufacturer in India. The company’s IPO also seems reasonably priced based on its FY23 earnings. The ongoing fancy for specialty chemical sector can lead to medium to long-term rewards.
Archean Chemical Industries Ltd IPO Noteworthy Highlights
Check out some of the key details and information about Archean Chemical Industries IPO before investing:
- Archean Chemical Industries is the only manufacturer of sulphate potash in India. The company's marine chemicals business is predominately conducted on a business-to-business basis both in India and internationally.
- Archean Chemical Industries IPO lot size is 36 shares, and a retail-individual investor can apply for up to 13 lots, making the total investment of 468 shares or Rs 190,476.
- IIFL Securities, ICICI Securities and JM Financial are the joint Book Running Lead Managers (BRLMs) to this issue.
- The company has reserved 75% of the offer for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the balance 10% for retail investors.
- Chemikas Speciality LLP, Ravi Pendurthi and Ranjit Pendurthi are the promoters of Archean Chemical Industries.
- The promoters collectively hold an aggregate of 67,724,755 equity shares, equivalent to 65.58% of the pre-offer issued, subscribed and paid-up equity share capital of the company.
Financial Snapshot - Archean Chemical Industries IPO
Archean Chemical Industries’ revenues have been rising, but the net profit has been inconsistent. Check out its financial performance over the recent years.
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2020 | Rs 1,428.61 crore | Rs 608.17 crore | Rs -36.22 crore |
| March 2021 | Rs 1,432.43 crore | Rs 740.76 crore | Rs 66.61 crore |
| March 2022 | Rs 1,606.65 crore | Rs 400.27 crore | Rs 84.41 crore |
Archean Chemical Industries Ltd. IPO - SWOT Analysis
Strengths
Archean Chemical Industries has a leading market position with long-standing relationships with global customers, established infrastructure and access to brine reserves at the Rann of Kutch. The company’s leadership position and low cost-production offer competitive advantages such as product pricing, economies of scale, and the ability to scale their business, increase customer loyalty and expand the client base, all of which have, in turn, resulted in the growth of revenues and EBIDTA in the last 3 fiscal years.
Weaknesses
The company has a major reliance on three principal products for its sales which could have an adverse effect on its business. The company is also subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances. The company had posted a net loss in Fiscal 2020.
Opportunities
The company plans to expand its product line into bromine derivative performance products in the next 2 to 3 years and is in the process of increasing the manufacturing capacity for bromine production.
Threats
Archean Chemical Industries’ operations at its manufacturing facility at Hajipir, Gujarat are subject to stringent scrutiny, inspection and audit from third-party environmental agencies, including governmental authorities. It also faces stiff competition from both domestic as well as multinational corporations.
Archean Chemical Industries IPO Grey Market Premium
| Date | GMP |
|---|---|
| 7th November | Rs.60 |
| 6th November | Rs.70 |
How to apply for Archean Chemical Industries Ltd. IPO?
You can apply for the Archean Chemical Industries Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Archean Chemical Industries Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
