IPO flurry continues as Archean Chemical to launch issue next week. Check GMP, price band
1 min read 03 Nov 2022, 01:00 PM ISTArchean Chemical IPO has fixed a price band of ₹386 to ₹407 per share for its initial share sale
PremiumThe initial public offering (IPO) of specialty chemical manufacturer Archean Chemical Industries Ltd will open for public subscription next week on Wednesday, November 9, 2022. The three-day issue will conclude on Friday, November 11. The bidding for anchor investors will open on 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 ₹80 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.
Promoter Chemikas Speciality will sell 20 lakh shares via OFS, while investors Piramal Natural Resources and India Resurgence Fund will sell 38.35 lakh shares each. India Resurgence Fund II will divest 64.78 lakh shares.
The company plans to use the proceeds of the fresh issue for the redemption of non-convertible debentures (NCDs) issued by it. “This will reduce its outstanding indebtedness, debt servicing costs, improve the debt to equity ratio and enable utilisation of our internal accruals for further investment in our business growth and expansion," it said in its draft IPO papers.
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.
