Archean Chemical Industries Limited IPO Details

 

Archean Chemical Industries Limited IPO

 

Archean Chemical Industries Limited IPO (Archean Chemical Industries IPO) Details

 

Offer period

Nov 9, 2022, to Nov 11, 2022,

Price Band

₹386 to ₹407 per share

Lot Size

36 Shares

Issue Size

₹1462.31 Cr

Listing Date

Nov 21, 2022

Allotment Date

Nov 16, 2022

 

Archean Chemical Industries Limited - Company Overview

In Fiscal 2021, Archean Chemical Industries Limited is India's largest exporter of bromine and industrial salt. The company is India's leading specialty marine chemical manufacturer, producing and exporting bromine, industrial salt, and potash sulphate to customers worldwide.

Archean Chemical Industries sells its products to 18 global customers in 13 different countries and 24 domestic customers. With 2.7 million MT of industrial salt exported in Fiscal 2021, the company was India's largest exporter.

 

Business Overview

Archean Chemical Industries Limited is India's largest bromine exporter. The company is India's sole producer of sulphate potash. The marine chemicals business of the company is mostly conducted on a business-to-business basis, both in India and internationally.

The company operates an integrated production facility for bromine, industrial salt, and potash sulphate operations in Hajipir, Gujarat, on the northern edge of the Rann of Kutch brine fields.

 

Archean Chemical Industries Limited - IPO Synopsis

Archean Chemical Industries' initial public offering (IPO) worth ₹1462.32 crores begins on November 9th and closes on November 11th.

The offering consists of a fresh issue of up to 805 crore equity shares and an offer for the 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 lot size for this issue is 36 shares, and the price band is ₹386 - ₹407 per share.

The shares will be distributed on November 16th, with the listing date set for November 21st.

The issue's lead managers are IIFL Securities, ICICI Securities Ltd, and JM Financial.

 

Archean Chemical Industries Limited - Objectives of the IPO

The Selling Shareholders will be entitled to their respective portions of the Offer for Sale proceeds.

The company intends to use the net proceeds of the Fresh Issue to fund the following projects:

  1. Redemption or earlier redemption of NCDs issued by the Company, in part or in full.

  2. General corporate objectives

 

Archean Chemical Industries Limited - Financial Overview (in crore)

Period Ended

Total Assets

Total Revenue

Profit After Tax

Net Worth

Total Borrowing

31-Mar-19

1260.51

572.91

39.97

42.37

772.02

31-Mar-20

1428.6

617

-36.24

5.97

929.26

31-Mar-22

1529.68

1142.83

188.58

261.06

921.87

30-Jun-22

1606.65

408.82

84.41

345.44

915.58

 

Archean Chemical Industries Limited IPO - Pros
  1. Market leadership, expansion, and growth in bromine and industrial salt

  2. The speciality marine chemicals industry has high entry barriers.

  3. Established infrastructure and cost-effective integrated production

  4. Largest Indian bromine and industrial salt exporter with a global customer base

 

Archean Chemical Industries Limited IPO - Cons
  1. Manufacturing operations slowing or shutting down, or strikes, work stoppages, or increased wage demands by employees

  2. Failure to develop new bromine derivative products successfully or to continue product portfolio expansion in a timely and cost-effective manner

  3. Our reliance on three main products to significantly increase sales could be detrimental to our business.

  4. Because the manufacturing facilities are only in Gujarat, the operations are vulnerable to geographical risks such as weather and natural occurrences, as well as regulatory, economic, demographic, and other changes in Gujarat.

 
How to Apply for Archean Chemical Industries Limited IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your client ID

  3. Enter the OTP received in your registered mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity, and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

  8. You can also watch our youtube video on “How to Apply on IPO”

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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