Archean Chemical Industries IPO subscribed 30%

Published on Nov 09, 2022 17:25

The initial public offer (IPO) of Archean Chemical Industries received bids for 59,41,260 shares as against 1,99,57,325 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (9 November 2022). The issue was subscribed 30%.

The issue opened for bidding on Wednesday (9 November 2022) and it will close on Friday (11 November 2022). The price band of the IPO is fixed at Rs 386 to 407 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.

The IPO comprises fresh issue of equity shares aggregating to Rs 805 crore and an offer for sale of upto 1,61,50,000 equity shares.

Promoter Chemikas Speciality LLP is offering 20,00,000 equity shares, leading to a post-issue shareholding of 30.44% from 38.21% pre issue.

The company proposes to utilize the net proceeds of the fresh issue towards redemption or earlier redemption in part or full of non-convertible debentures (NCDs) issued by the company amounting Rs 644 crore and general corporate purposes prepayment.

Ahead of the IPO, Archean Chemical Industries on Monday, 7 November 2022, raised Rs 658.04 crore from anchor investors. The board allotted 1.62 crore shares at Rs 407 each to 42 anchor investors.

Archean Chemical Industries is a leading specialty marine chemical manufacturer in India and it focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It is the largest exporter of bromine and industrial salt by volume in India in financial year 2021. As of 30 June 2022, it marketed products to 18 global customers in 13 countries and to 24 domestic customers.

The company reported a net profit of Rs 84.41 crore and net sales of Rs 400.27 crore in the two months ended on June 2022.