CHEMCON SPECIALITY CHEMICALS IPO is a manufacturer of specialized chemical products and is all set to make a debut in the stock market with an issue size of 318 Cr.
Chemcon Speciality Chemicals IPO– Overview
| Chemcon Speciality Chemicals IPO Issue Date | 21 – 23 Sept 2020 |
| Chemcon Speciality Chemicals IPO Opening Date | 21 Sept 2020 |
| Chemcon Speciality Chemicals IPO Face Value | INR 10 per share |
| Chemcon Speciality Chemicals IPO Price | INR 340 per share |
| Chemcon Speciality Chemicals IPO Lot Size | 44 Shares |
| Issue Size | 318 Cr |
| Offer for sale | 153 Cr |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE. |
| QIB Shares Offered | 113.54 times |
| NII (HNI) Shares | 449.14 times |
| Company Promoters | KamalKumar Rajendra Aggarwal, Navdeep Naresh Goyal, and Shubha rangana Goyal are the promoters of the company. |
Chemcon Speciality Chemicals IPO -Tentative Dates
| CHEMCON SPECIALITY CHEMICALS IPO opening date | 21 Sept 2020 |
| CHEMCON SPECIALITY CHEMICALS IPO closing date | 23 Sept 2020 |
| Basis of Allotment | 28 Sept 2020 |
| Initiation of Refunds | 29 Sept 2020 |
| The credit of Shares to Demat | 30 Sept 2020 |
| CHEMCON SPECIALITY CHEMICALS IPO Listing Date | 1 Oct 2020 |
Industry Overview.
India market of chemicals used as pharma intermediates includes domestic consumption and exports.
The overall market of chemicals used as pharma intermediates is anticipated to grow at 7-9% CAGR over the 5-year forecast period. Opportunities for the growth of domestic manufacturers are:
•Government initiatives as bulk drugs parks focussing on streamlining the pharmaceutical industry
•Programs such as the Jan Aushadhi Scheme: Private players can participate in such schemes through competitive tenders and use their operational GMP-compliant sites to supply medicines
•Shut down of Chinese chemical plants due to environmental concerns
Company Overview
Chemcon Speciality Chemicals Ltd is a manufacturer of specialized chemical products i.e., HMDS and CMIC. Its product portfolio includes oilfield chemicals, Pharma intermediates, Silanes, and chemicals contract manufacturing work.
Chemcon Chemicals is a leading manufacturer of pharmaceutical chemicals and generates maximum revenue from this particular segment. Hetero Labs Limited, Laurus Labs Ltd, Aurobindo Pharma Ltd, Lantech Pharmaceuticals Ltd, Macleods Pharma Ltd are the key customers of its Pharma chemical business. However, Shree Radha Overseas, Universal Drilling Fluids, Water Systems Speciality are some of the clients of its oilfield chemicals segment. In 2018, it was the 8th largest manufacturer of HMDS and 2nd largest manufacturer of CMIC chemical worldwide.
Basis Of The Issue
- To meet capital expenditures for expansion of manufacturing facility.
- To meet business working capital requirements.
- To meet general corporate purposes.
Financial Statements
| Particulars | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 |
| Total Assets | 2,257.92 | 1,730.33 | 970.66 |
| Total Revenue | 2,660.17 | 3,053.26 | 1,583.91 |
| Profit After Tax | 488.53 | 430.41 | 263.81 |
Strengths
- Largest manufacturer of pharmaceutical chemicals across the globe.
- Leading oilfield chemicals manufacturer in India.
- Diversified clientele base in the domestic and global markets.
- Strong and consistent financial performance.
- Dedicated manufacturing plants for each product.
Weakness
- The 4 Lead Managers associated with the Offer have handled 17 public issues in the past three years out of which 6 issues closed below the issue price on the listing date.
Company Contact Information
Chemcon Speciality Chemicals Limited
Block Number 355, Manjusar Kunpad Road
Manjusar Village, Taluka Savli
Vadodara 391775
Phone: 91 98795 64107
Email: investor.relations@cscpl.com
Website: http://www.cscpl.com/
Chemcon IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: chemcon.ipo@linkintime.co.in
Website: https://linkintime.co.in/
