Archean Chemical Industries Limited IPO right this moment: The preliminary public providing (IPO) of Archean Chemical Industries, a specialty marine chemical producer, opened for subscription on Wednesday, November 9, 2022. It opened for public subscription at 10 am and was subscribed round 9 per cent by 12:48 pm on the primary day of bidding.
It obtained complete bids for 17,43,084 shares throughout each the inventory exchanges towards 1,99,57,325 shares on provide, knowledge from National Stock Exchange (NSE) confirmed.
The Rs 1,462.3 crore Archean Chemical Industries IPO will likely be obtainable for subscription until Friday, November 11, 2022, and the value band of the corporate has been mounted at Rs 386-407 per share.
The IPO contains a recent concern of fairness shares aggregating as much as Rs 805 crore and an offer-for-sale (OFS) of as much as 1,61,50,000 shares by the promoter and traders, together with the India Resurgence Fund, a three way partnership between the Piramal Enterprises and Bain Capital.
Through the OFS, promoter Chemikas Speciality will promote 20 lakh shares whereas traders Piramal Natural Resources and India Resurgence Fund, Scheme I’ll promote round 38.35 lakh (38,35,562) shares every and India Resurgence Fund, Scheme II will divest 64.78 lakh (64,78,876) shares.
The internet proceeds from the recent concern will likely be used for redemption of non-convertible debentures (NCDs) issued by it and for common company functions, as per the data offered within the purple herring prospectus (RHP).
Three-fourth of the difficulty measurement has been reserved for certified institutional patrons (QIBs), 15 per cent for non-institutional traders and the remaining 10 per cent for retail traders.
Archean Chemical Industries is specialty marine chemical producer which is targeted on producing and exporting bromine, industrial salt, and sulphate of potash. The firm produces its merchandise from its brine reserves within the Rann of Kutch, positioned on the coast of Gujarat, and manufactures merchandise at its facility close to Hajipir in Gujarat.
“Our bromine is used as key initial level materials, which have applications in the pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage batteries,” the RHP stated.
Industrial salt is a crucial uncooked materials utilized in chemical business for manufacturing of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium steel. Sulphate of potash is used as a fertilizer and likewise has medical makes use of.
Investors who want to subscribe to Archean Chemical Industries IPO can bid in a number of 36 fairness shares and multiples thereafter. At the higher value band, they are going to be shelling out Rs 14,652 to get a single lot of Archean Chemical Industries. The shares will likely be listed on each BSE and NSE.
The candidates additionally should be aware that the cut-off time for UPI mandate acceptance is Friday, November 11, 2022, upto 5:00 pm, the final day of IPO bidding. Further bids with confirmed standing of mandate quantity blocked (RC100) shall be thought of as legitimate functions and therefore, traders are suggested to submit their UPI functions in IPO properly upfront to keep away from any final minute technical/systemic constraints which will hamper their potential to take part in IPOs by efficiently accepting the mandate.
IIFL Securities, ICICI Securities and JM Financial are the book-running lead managers to the provide whereas Link Intime India is the registrar of the difficulty.
Before heading into the IPO, Archean Chemical Industries on Monday raised over Rs 658.03 crore (Rs 6,58,03,72,337) from 42 anchor traders in lieu of 1,61,67,991 fairness shares at Rs 407 every, knowledge from the inventory exchanges confirmed.
The analysis groups at Reliance Securities and Geojit Financial Services of their respective IPO notes have given a “Subscribe” ranking to the provide.
Geojit Research in its IPO be aware stated, “At the upper price band of Rs 407, ACIL is available at a P/E of 26x (FY22), which appears reasonably priced. Considering its consistent top-line & bottom-line growth with cost efficiencies, industry leading position in a high entry barrier industry, expansion plans in product lines and capacities, we assign a “Subscribe” ranking on a brief to medium time period foundation.”
Reliance Securities in its reserch report famous, “Based on FY22 earnings, the company is valued at 26.5x P/E, 12.4x EV/EBITDA and 5.1x EV/Sales, which is a discount to peers. The company has a leading market position and it is undergoing continues expansion in bromine and industrial salt. High entry barriers in the speciality marine chemicals industry bodes well for the company. In view of market leading position, established infrastructure, integrated production with cost efficiencies, consistent financial performance, high entry barriers for competitor, an experienced management team and attractive valuation, we recommend ‘SUBSCRIBE’ to the issue.”
The share allotment is prone to happen on Wednesday, November 16, 2022, and the shares are anticipated to be listed on Monday, November 21, 2022, in line with the timeline given within the RHP.
