Chemcon Speciality Chemicals IPO fixes price band at ₹338- ₹3401 min read . Updated: 18 Sep 2020, 02:07 PM IST
- The three-day share sale will be open for subscription during 21-23 September. The issue has fixed minimum bid lot at 44 equity shares or in multiples thereof.
Manufacturer of speciality chemicals Chemcon Speciality Chemicals Limited on Friday fixed price band at ₹338- ₹340 per share for its initial public offering (IPO). The three-day share sale will be open for subscription during 21-23 September.
The company aims to raise ₹318 crore at the upper end of the band with a fresh issue of equity shares aggregating up to ₹165 crore and offer for share (OFS) by promoters of up to 45 lakh equity shares.
The issue has fixed minimum bid lot at 44 equity shares or in multiples thereof. “The floor price is 33.8 times the face value of the equity shares and the cap price is 34 times the face value of the equity shares," a company statement said.
The company intends to utilize net proceeds from the fresh Issue towards capital expenditure towards expansion of manufacturing facility, to meet working capital requirements and towards general corporate purposes.
Chemcon is a manufacturer of speciality chemicals such as Hexamethyldisilazane (HMDS) and Chloromethyl Isopropyl Carbonate (CMIC) which are chemicals predominately used in the pharmaceutical industry. It manufactures Inorganic Bromides used as completion fluids in the oilfield industry.
As per a Frost & Sullivan Report, the company was the only manufacturer of HMDS in India and was the third largest manufacturer of HMDS in terms of production in 2019. It earned revenue from operations of ₹262.05 crore with EBITDA of ₹70.26 crore and profit after tax is ₹48.85 crore in FY 2020.
“Additionally, the company has long standing relationships with its key customers namely including Laurus Labs Limited , Hetero Labs Limited, Aurobindo Pharma Limited ,Macleods Pharmaceuticals Limited, Lantech Pharmaceuticals Limited, Vivin Drugs & Pharmaceuticals Limited , Ind-Swift Laboratories Limited, Water Systems Speciality Chemical DMCC, CC Gran Limited Liability Company, Shree Radha Overseas. It also exports its products to global markets covering US, Germany, Italy, South Korea, People’s Republic of China, Japan, United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia," it said.
Intensive Fiscal Services Private Limited and Ambit Capital Private Limited are book running lead managers to the issue.