Archean Chemical IPO
Archean Chemical Industries, a speciality marine chemical manufacturer, has filed its preliminary papers with SEBI to raise funds...
IPO Details
- Open Date
09 Nov 2022
- Close Date
11 Nov 2022
- IPO
Price Range
₹ 386 to ₹407
- IPO
Size
₹ 1462.31 Cr
- Listing Exchange
BSE, NSE
- Listing Date
21 Nov 2022
IPO Timeline
Last Updated: 16 November 2022 11:39 AM by 5Paisa
Archean Chemical Industries IPO worth Rs. 1462.32 crores opens on 9th November and closes on 11th November.
The issue consists of a fresh issue of equity shares aggregating up to ₹805 crore and an offer for sale of up to 1.6 crore shares by the promoter and investors, including the India Resurgence Fund, a joint venture between the Piramal Group and Bain Capital. The issue has a lot size of 36 shares per lot and the price band is fixed at Rs. 386 – Rs. 407 per share.
The shares will be allotted on 16th November while the listing date is fixed for 21st November.
IIFL Securities, ICICI Securities Ltd and JM Financial are the lead managers to the issue.
Objective of Archean Chemical IPO:
The proceeds from the issue will be used got
• Redemption or earlier redemption, in part or full, of NCDs issued by our Company
• General corporate purposes
Archean Chemical IPO Video
Archean Chemicals Industries is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It produces its products from its own brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures its products at its facility near Hajipir in Gujarat.
The key geographies for exports include China, Japan, South Korea, Qatar, Belgium and the Netherlands. Some of the major customers include Sojitz Corporation, which is also a shareholder in our Company, Shandong Tianyi Chemical Corporation, Unibrom Corporation, Wanhau Chemicals and Qatar Vinyl Company Limited
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.
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 to reduce the plasma concentration of potassium when hypokalaemia occurs.
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 1130.4 | 740.8 | 608.2 |
| EBITDA | 479.5 | 276.3 | 156.8 |
| PAT | 188.6 | 66.6 | -36.2 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total Assets | 1529.7 | 1432.4 | 1428.6 |
| Share Capital | 19.3 | 19.3 | 19.3 |
| Total Borrowings | 921.9 | 978.8 | 929.3 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 314.5 | 119.1 | 147.6 |
| Net cash from / (used in) investing activities | -110.1 | -1.8 | -196.7 |
| Net cash flow from / (used in) financing activities | -223.7 | -110.3 | 26.4 |
| Net increase (decrease) in cash and cash equivalents | -19.3 | 7.0 | -22.8 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Archean Chemical Industries Limited | 1,142.83 | 6.45 | 7.01 | NA | 92.0% |
| Tata Chemicals Limited | 1,287.81 | 10.06 | 560.93 | 89.15 | 1.8% |
| Deepak Nitrite Limited | 6,844.80 | 56.88 | 172.05 | 36.66 | 33.1% |
| Aarti Industries Limited | 7,000.76 | 30.04 | 201.05 | 32.45 | 14.9% |
| Neogen Chemicals Limited | 488.32 | 13.45 | 78.43 | 114.36 | 17.1% |
Strengths
1. Leading market position, expansion and growth in bromine and industrial salt
2. High entry barriers in the specialty marine chemicals industry
3. Established infrastructure and integrated production with cost efficiencies
4 Largest Indian exporter of bromine and industrial salt with global customer base
Risks
1. Slowdown or shutdown in the manufacturing operations or strikes, work stoppages or increased wage demands by the employees
2. Unsuccessful development of new bromine derivative products or continuation of product portfolio expansion in a timely and cost-effective
3. Reliance on three principal products for substantially growth of sales could have an adverse effect on our business.
4. The manufacturing facilities are located only in Gujarat; hence the operations are exposed to geographic risks such as weather and natural occurrences as well as regulatory, economic, demographic and other changes in Gujarat
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FAQs
The Archean Chemical Industries IPO lot size is 36 shares per lot. A retail-individual investor can apply for up to 13 lots (468 shares or ₹190,476).
The price of the The Archean Chemical Industries IPO is set at Rs. 386 – Rs. 407 per share.
The Archean Chemical Industries IPO opens on 9th November and closes on 11th November.
The The Archean Chemical Industries IPO issue consists of a fresh issue of equity shares aggregating up to ₹805 crore and an offer for sale of up to 1.6 crore shares.
Archean Chemical Industries is promoted by Chemikas Speciality LLP, Ravi Pendurthi and Ranjit Pendurthi.
The allotment date of The Archean Chemical Industries IPO is set for 16th November.
The The Archean Chemical Industries IPO issue will be listed on 21st November.
IIFL Securities, ICICI Securities Ltd and JM Financial are the book running lead managers to the issue.
The proceeds from the issue will be used got
• Redemption or earlier redemption, in part or full, of NCDs issued by our Company
• General corporate purposes
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
Contact Information
Archean Chemical
Archean Chemical Industries Limited
No. 2, North Crescent Road,
T Nagar, Chennai 600 017
Tamil Nadu, India
Phone: +91 44 6109 9999
Email: info@archeanchemicals.com
Website: https://www.archeanchemicals.com/
Archean Chemical IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: archean.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Archean Chemical IPO Lead Manager
IIFL Securities Ltd (Past IPO Performance)
ICICI Securities Limited (Past IPO Performance)
JM Financial Limited (Past IPO Performance)