Archean Chemicals IPO is all set to launch on November 9 2022, on the Indian stock market with an issue size of 805 Cr. Archean Chemical Industries Limited is the main exporter of bromine. In India, the business is the sole producer of sulphate potash. The majority of the company’s marine chemicals business is done on a business-to-business basis both domestically and abroad.
Archean Chemical IPO Details
| IPO Date | Nov 9, 2022 to Nov 11, 2022 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price | ₹386 to ₹407 per share |
| Lot Size | 36 Shares |
| Issue Size | 35,928,870 shares of ₹2 (Aggregating up to ₹1,462.31 Cr) |
| Fresh Issue | 19,778,870 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 Specialty LLP, Ravi Pendurthi and Ranjit Pendurthi are the company promoters. |
Archean Chemical IPO Tentative Dates
Open to the public on November 9, 2022, Archean Chemical will close on November 11, 2022. The Archean Chemical IPO bid period runs from November 9, 2022, at 10:00 A.M., until November 11, 2022.
| Event | Tentative Date |
| Opening Date | Nov 9, 2022 |
| Closing Date | Nov 11, 2022 |
| Basis of Allotment | Nov 16, 2022 |
| Initiation of Refunds | Nov 17, 2022 |
| Credit of Shares to Demat | Nov 18, 2022 |
| Listing Date | Nov 21, 2022 |
Archean Chemical IPO: Industries Overview
Market-friendly policies protected India from the weak global economy from 2012 to 2016, while stronger macroeconomic fundamentals and a steady inflow of capital boosted India’s economic growth from 5.5% in 2012 to 8.2% in 2016. However, as a result of external vulnerabilities including the global slowdown, the impact of demonetization, and the transitory effect of the adoption of the goods and services tax (GST), real GDP in India fell to 6.8% in 2017 from 8.2% in 2016.
The ongoing effects of demonetization and other political reforms caused India’s economic development to slow down even further in 2019. Due to ongoing long-term stress among non-bank financial institutions (NBFIs), which is impeding the financial system’s overall ability to provide credit, growth has remained relatively moderate. The COVID-19 epidemic caused a 7.3% real GDP decline in India in calendar year 2020.
However, due to strong macroeconomic fundamentals, including moderate inflation, the implementation of important structural reforms, and improved fiscal and monetary policies, the medium-term outlook for India’s real GDP is expected to improve and record a growth rate of approximately 6.6% by the year 2025.
Archean Chemical IPO:Company Overview
Bromine, industrial salt, and sulphate of potash are the main products produced and exported by Archean Chemicals LTD, a renowned speciality marine chemical manufacturer in India. According to Frost & Sullivan, they have some of the lowest production costs in the world for both bromine and industrial salt, and they are the leading exporter of both by volume from India in Fiscal 2021.
Archean Chemicals manufactures its goods at a site close to Hajipir in Gujarat using brine sources in the Rann of Kutch, which is situated on Gujarat’s coast. As of June 30, 2022, they had 24 domestic customers as well as 18 international clients in 13 different nations.
Archean Chemical IPO: Financials
Archean Chemical IPO Objectives
The company will use the funds for the following objectives:
1. Redemption or earlier redemption, in part or full, of NCDs issued by the Company.
2. General corporate purposes.
Archean Chemical Industries LTD Strengths
- Leading market position, expansion and growth in bromine and industrial salt.
- High entry barriers in the speciality marine chemicals industry.
- Established infrastructure and integrated production with cost efficiencies.
Archean Chemical Industries LTD Weaknesses
- The business is dependent and will continue to depend on our manufacturing facility.
- An inability to comply with repayment and other covenants in its financing agreements could adversely affect its business, financial condition, cash flows and credit rating.
- Its manufacturing facility is located in Gujarat exposing it to regulatory and other geography specific risks such as weather and natural occurrences.
Company Contact Information
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 Registrar
Phone: +91-22-4918 6270
Email: archean.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Archean Chemical IPO Lead Manager(s)
IIFL Securities Ltd (Past IPO Performance)
ICICI Securities Limited (Past IPO Performance)
JM Financial Limited (Past IPO Performance)
