Home / Markets / Ipo /  Archean Chemical IPO: GMP steady ahead of subscription opening

The initial public offering (IPO) of specialty chemical manufacturer Archean Chemical Industries Ltd will open for public subscription this week on Wednesday, November 9, 2022 and the three-day issue will conclude on Friday, November 11, 2022. 

The bidding for anchor investors will open on Monday, November 7. The company has fixed a price band of 386 to 407 per share for its initial share sale.

As per market observers, Archean Chemical shares are commanding a premium (GMP) of 75 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 will comprise of issuance of fresh equity shares worth 805 crore and an offer for sale (OFS) of up to 1,61,50,00 equity shares by existing promoters and shareholders, including the India Resurgence Fund, a joint venture between the Piramal Group and Bain Capital. At the upper end of the price band, the IPO is expected to fetch 1,462 crore. The company plans to use the proceeds of the fresh issue for the redemption of non-convertible debentures (NCDs) issued by it.

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.

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. Meanwhile, 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.

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