Home / Markets / Stock Markets /  Archean Chemical shares list at premium over IPO issue price: Buy, sell or hold?

Shares of Archean Chemical Industries Pvt Ltd made a positive market debut on Monday with the stock listing at 450 apiece on the NSE, a premium of over 11% as compared to its IPO issue price of 407 per share. On the BSE, Archean Chemical shares started trading at 449 apiece.

“The IPO was offered at reasonable valuations and the company has reported impressive Q1FY23 results that augurs well for the chemical company. So, allottees who applied for the public issue for listing premium are advised to maintain stop loss at 440 and wait for further upside whereas those who have medium to long term perspective can hold the stock maintaining stop loss at 410 apiece levels. In medium term, Archean Chemial share price may go up to 550 tom 570 whereas in long term or say in next one year, it may go up to 640 apiece levels. Fresh investors can also buy the stock at current levels maintaining stop loss at 410 for 3-6 month target of 550 to 570 and one eyar target of 640," said Ravi Singhal, CEO at GCL Securities.

“The company’s strong listing can be attributed to strong interest from investors. we advise investors to lock in listing gains. Those who applied for listing gains can keep a stop loss of Rs. 433 in place," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart.

The public issue was subscribed 32.23 times by the close of the subscription period on Friday, November 11, 2022. Archean Chemical IPO consisted 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. 

The price range for the offer was 386-407 per share. The firm plans to use the proceeds of the fresh issue for the redemption of Non-Convertible Debentures (NCDs) issued by it. The company raised 658 crore from anchor investors ahead of its issue. 

Archean Chemical Industries Ltd is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It produces 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 views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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