Archean Chemical IPO will open for subscription from 09 November 2022. the company aims for an issue size of ₹1,462.31 Cr through this IPO.
Archean Chemical Industries Limited
The company is a speciality marine chemical manufacturer focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It is the largest exporter of bromine and industrial salt in India in Fiscal 2021 and has amongst the lowest cost of production globally in both bromine and industrial salt. It produces its products from brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures products at its facility near Hajipir in Gujarat.
As of 30 September 2021, the company marketed its products to 13 global customers in 13 countries and 29 domestic customers. Its bromine is used as key initial level material, which has applications in pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas, and energy storage batteries. Industrial salt is an important raw material used in the chemical industry for the production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake), and sodium metal. Sulphate of potash is used as a fertilizer and also has medical uses. In the six months ended 30 September 2021, its sales of bromine and industrial salt constituted 59.22% and 40.72%, respectively of its revenue from operations.
Basic details about the company
| Full name | Archean Chemical Industries Limited |
| Sector | Chemicals |
| Industry | Chemicals |
| Company Website | https://www.archeanchemicals.com/ |
Major competitive strengths
- Strong and consistent financial performance.
- Established infrastructure and integrated production with cost efficiencies.
- Largest Indian exporter of bromine and industrial salt with a global customer base.
- Leading market position, expansion, and growth in bromine and industrial salt.
- Experienced management team, promoters, financial investors, and stakeholders.
Objects of the Issue
- Redemption or earlier redemption, in part or full, of NCDs issued by the Company.
- General corporate purposes.
Dates to remember
| IPO Opening date | 09 November 2022 |
| IPO Closing | 11 November 2022 |
| Basis of Allotment | 16 November 2022 |
| Initiation Refund | 17 November 2022 |
| Credit to Demat Account | 18 November 2022 |
| Listing Date | 21 November 2022 |
Archean Chemical IPO Details
| IPO Date | Nov 9, 2022 to Nov 11, 2022 |
| Face Value | ₹2 per share |
| Price | ₹386 to ₹407 per share |
| Lot Size | 36 Shares |
| Issue Size | [.] shares of ₹2 (aggregating up to ₹1,462.31 Cr) |
| Fresh Issue | [.] shares of ₹2 (aggregating up to ₹805.00 Cr) |
| Offer for Sale | 16,150,000 shares of ₹2 (aggregating up to ₹657.31 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not less than 75% of the Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Offer |
| Retail Shares Offered | Not more than 10% of the Offer |
| Company Promoters | Chemikas Speciality LLP, Ravi Pendurthi and Ranjit Pendurthi are the company promoters. |
Archean Chemical IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 36 | ₹14,652 |
| Retail (Max) | 13 | 468 | ₹190,476 |
| S-HNI (Min) | 14 | 504 | ₹205,128 |
| B-HNI (Min) | 69 | 2,484 | ₹1,010,988 |
Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Archean Chemical Financial Performance
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | |
| Revenue | 565.5 | 608.2 | 740.8 | 1,130.4 |
| Expenses | 659.8 | 633.7 | 664.3 | 891.8 |
| Net income | 39.9 | (36.4) | 66.4 | 188.7 |
| Margin (%) | 7.06 | (5.98) | 8.96 | 16.69 |
Archean Chemical Valuations & Margins
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | |
| EPS | 5.44 | (3.51) | 6.45 | 18.26 |
| PE ratio | – | – | – | 21.14 – 22.29 |
| RONW (%) | 94.34 | (606.95) | 92.04 | 72.24 |
| NAV | – | – | 7.01 | 25.28 |
| ROCE (%) | 17.81 | 11.23 | 21.01 | 34.62 |
| EBITDA (%) | 34.37 | 25.78 | 37.29 | 42.42 |
| Debt/Equity | 18.22 | 155.66 | 13.53 | 3.53 |
Company Promoters
- Chemikas Speciality LLP
- Ravi Pendurthi
- Ranjit Pendurthi
Lead Manager(s)
- IIFL Securities Ltd
- ICICI Securities Limited
- JM Financial Limited
Archean Chemical Offer Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: archean.ipo@linkintime.co.in
Website: www.linkintime.co.in
Archean Chemical Contact Details
Archean Chemical Industries Limited
No. 2, North Crescent Road
T Nagar, Chennai 600 017
Tamil Nadu
Phone: +91 44 6109 9999
Email: info@archeanchemicals.com
Website: www.archeanchemicals.com
Archean Chemical IPO Allotment Status
Archean Chemical IPO allotment will be available on Link Intime’s website.
Click on this link to get allotment status.
Final thoughts
Archean Chemical IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
