BackArchean Chemical IPO opens tomorrow. What latest GMP signals
Archean Chemical Industries IPO to open on Wednesday, November 9, 2022
PremiumSpecialty chemical manufacturer Archean Chemical Industries Ltd's initial public offering (IPO) will open for public subscription tomorrow i.e., Wednesday, November 9, 2022 and the three-day issue will conclude on Friday, November 11, 2022. The price band has been fixed in the range of ₹386 to ₹407 per share for its initial share sale. At the upper end of the price band, the IPO is expected to fetch ₹1,462 crore.
As per market observers, Archean Chemical shares are commanding a premium (GMP) of ₹73 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on Monday, November 21, 2022.
Archean Chemical IPO consists of a fresh issue of equity shares aggregating up to ₹805 crore and an offer-for-sale (OFS) of up to 1.61 crore shares by the promoter and investors, including the India Resurgence Fund, a joint venture between the Piramal Group and Bain Capital. The company plans to use the net proceeds of the fresh issue for the redemption of non-convertible debentures (NCDs) issued by it.
“Archean Chemical is India's leading specialty marine chemical manufacturer, producing and exporting bromine, industrial salt, etc. In addition, they were India's largest exporter by volume of bromine and industrial salt in FY21. Their EBITDA and PAT margins are on an upward trajectory. The asking p/e at the upper band of issue price is around 26.54x (Post fresh issue). As a result, the IPO appears to be priced fairly and If the market remains stable, we can anticipate a high level of subscription," said Abhay Doshi, co-founder of UnlistedArena.
Archean Chemical Industries is a leading manufacturer of specialty marine chemicals in India, and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It 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.
IIFL Securities, ICICI Securities and JM Financial are the book-running lead managers to the public issue. Link Intime India has been appointed as the registrar to the IPO.
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