IPO Details
- Open Date 09-Nov-22
- Close Date 11-Nov-22
- Lot Size 36
- IPO Size ₹ 1462.31 Cr
- IPO Price Range ₹ 386 to ₹407
- Min Investment ₹ 13896
- Listing Exchange BSE, NSE
- Basis of Allotment 16-Nov-22
- Refunds 17-Nov-22
- Credit to Demat Account 18-Nov-22
- Listing Date 21-Nov-22
Archean Chemical IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 11-Nov-22 | 48.91x | 14.90x | 9.96x | 32.23x |
| 10-Nov-22 | 0.54x | 2.07x | 2.94x | 1.41x |
| 09-Nov-22 | 0.04x | 0.36x | 0.95x | 0.30x |
IPO Synopsis
Archean Chemical Industries IPO worth Rs. 1462.32 crores opens on 9th November and closes on 11th November.
The issue consists of a fresh issue of equity shares aggregating up to ₹805 crore and an offer for sale of up to 1.6 crore shares by the promoter and investors, including the India Resurgence Fund, a joint venture between the Piramal Group and Bain Capital. The issue has a lot size of 36 shares per lot and the price band is fixed at Rs. 386 – Rs. 407 per share.
The shares will be allotted on 16th November while the listing date is fixed for 21st November.
IIFL Securities, ICICI Securities Ltd and JM Financial are the lead managers to the issue.
Objective of Archean Chemical IPO:
The proceeds from the issue will be used got
• Redemption or earlier redemption, in part or full, of NCDs issued by our Company
• General corporate purposes
Archean Chemical IPO Video
About Archean Chemical
Archean Chemicals Industries is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It produces its products from its own brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures its products at its facility near Hajipir in Gujarat.
The key geographies for exports include China, Japan, South Korea, Qatar, Belgium and the Netherlands. Some of the major customers include Sojitz Corporation, which is also a shareholder in our Company, Shandong Tianyi Chemical Corporation, Unibrom Corporation, Wanhau Chemicals and Qatar Vinyl Company Limited
The bromine produced by Archean is used as key initial level material, which has applications in pharma, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage segments.
Industrial salt is an important raw material used in the chemical industry for the production of various other chemicals and compounds and sulphate of potash is used as a fertilizer and also has medical uses to reduce the plasma concentration of potassium when hypokalaemia occurs.
Archean Chemical Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 1130.4 | 740.8 | 608.2 |
| EBITDA | 479.5 | 276.3 | 156.8 |
| PAT | 188.6 | 66.6 | -36.2 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total Assets | 1529.7 | 1432.4 | 1428.6 |
| Share Capital | 19.3 | 19.3 | 19.3 |
| Total Borrowings | 921.9 | 978.8 | 929.3 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 314.5 | 119.1 | 147.6 |
| Net cash from / (used in) investing activities | -110.1 | -1.8 | -196.7 |
| Net cash flow from / (used in) financing activities | -223.7 | -110.3 | 26.4 |
| Net increase (decrease) in cash and cash equivalents | -19.3 | 7.0 | -22.8 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Archean Chemical Industries Limited | 1,142.83 | 6.45 | 7.01 | NA | 92.0% |
| Tata Chemicals Limited | 1,287.81 | 10.06 | 560.93 | 89.15 | 1.8% |
| Deepak Nitrite Limited | 6,844.80 | 56.88 | 172.05 | 36.66 | 33.1% |
| Aarti Industries Limited | 7,000.76 | 30.04 | 201.05 | 32.45 | 14.9% |
| Neogen Chemicals Limited | 488.32 | 13.45 | 78.43 | 114.36 | 17.1% |
IPO Key Points
-
Strengths
1. Leading market position, expansion and growth in bromine and industrial salt
2. High entry barriers in the specialty marine chemicals industry
3. Established infrastructure and integrated production with cost efficiencies
4 Largest Indian exporter of bromine and industrial salt with global customer base -
Risks
1. Slowdown or shutdown in the manufacturing operations or strikes, work stoppages or increased wage demands by the employees
2. Unsuccessful development of new bromine derivative products or continuation of product portfolio expansion in a timely and cost-effective
3. Reliance on three principal products for substantially growth of sales could have an adverse effect on our business.
4. The manufacturing facilities are located only in Gujarat; hence the operations are exposed to geographic risks such as weather and natural occurrences as well as regulatory, economic, demographic and other changes in Gujarat
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the lot size and investment required for the The Archean Chemical Industries IPO?
The Archean Chemical Industries IPO lot size is 36 shares per lot. A retail-individual investor can apply for up to 13 lots (468 shares or ₹190,476).
What is the price band of the The Archean Chemical Industries IPO?
The price of the The Archean Chemical Industries IPO is set at Rs. 386 – Rs. 407 per share.
When does the Archean Chemical Industries IPO issue open and close?
The Archean Chemical Industries IPO opens on 9th November and closes on 11th November.
What is the size of Archean Chemical Industries IPO issue?
The The Archean Chemical Industries IPO issue consists of a fresh issue of equity shares aggregating up to ₹805 crore and an offer for sale of up to 1.6 crore shares.
Who are the promoters/key personnels of Archean Chemical Industries?
Archean Chemical Industries is promoted by Chemikas Speciality LLP, Ravi Pendurthi and Ranjit Pendurthi.
What is the allotment date of Archean Chemical Industries IPO?
The allotment date of The Archean Chemical Industries IPO is set for 16th November.
What is the Archean Chemical Industries IPO’s listing date?
The The Archean Chemical Industries IPO issue will be listed on 21st November.
Who are the book runners for Archean Chemical Industries IPO?
IIFL Securities, ICICI Securities Ltd and JM Financial are the book running lead managers to the issue.
What is the objective of the issue?
The proceeds from the issue will be used got
• Redemption or earlier redemption, in part or full, of NCDs issued by our Company
• General corporate purposes
How to apply for the Archean Chemical Industries IPO?
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
Contact Details of Archean Chemical IPO
Contact Information
Archean Chemical Industries Limited
No. 2, North Crescent Road,
T Nagar, Chennai 600 017
Tamil Nadu, India
Phone: +91 44 6109 9999
Email: info@archeanchemicals.com
Website: https://www.archeanchemicals.com/
Archean Chemical IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: archean.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Archean Chemical IPO Lead Manager
IIFL Securities Ltd (Past IPO Performance)
ICICI Securities Limited (Past IPO Performance)
JM Financial Limited (Past IPO Performance)