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Archean Chemical IPO Subscription Status
# On 11 November 2022 @ 5.00 pm (Last Day)
QIB : 10706095 Shares, 48.91T
Big NII : 3700492 Shares, 16.90T
SmallNII: 18500246 Shares, 10.91T
RII : 3700492 Shares, 9.95T
Total : 19957325 Shares, 32.23T
Archean Chemical IPO Guidance: Click
Archean Chemical IPO Company Details
Archean Chemical 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. According to Frost & Sullivan, it is the largest exporter of bromine and industrial salt in India in Fiscal 2021 and have amongst the lowest cost of production globally in both bromine and industrial salt. It produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and Archean Chemical manufactures its products at its facility near Hajipir in Gujarat. As of September 30, 2021, it marketed its products to 13 global customers in 13 countries and to 29 domestic customers. Its bromine is used as key initial level materials, which have applications in the pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage batteries. Industrial salt is an important raw material used in chemical industry for production of sodium carbonate
, caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate and sodium metal. Sulphate of potash is used as a fertilizer and also has medical uses.
Bromine is recovered from soluble salts found in seawater, salt lakes, inland seas and brine wells. Bromine is produced from brine after separation of most of the sodium chloride and potash. According to Frost & Sullivan, it commands a leadership position in Indian bromine merchant sales by volume
in Fiscal 2021, and it is the largest exporter of Bromine from India.
In the six months ended September 30, 2021 and in Fiscal 2021, Fiscal 2020 and Fiscal 2019, it exported 46.29%, 46.10%, 39.79% and 51.22%, respectively, of its bromine production abroad, mainly to China. The balance of its bromine production is sold in the domestic market. Bromine is a highly corrosive, hazardous and toxic chemical and its handling requires a high degree specialized expertise which it has developed. The transportation of bromine is also dangerous and requires nickel and lead lined ISO containers, of
which it had (owned and leased) 226 such containers for its export business as of February 15, 2022. The bromine global market size was US$3.13 billion in CY2021, and the market is expected
to grow at a CAGR of 5.8% between CY2020 and CY2025. In response to this demand, it intends to, and are in the process of, increasing its manufacturing capacity for bromine production. In addition, plan to expand its product line into bromine derivative performance products in the next two-to-three years, in particular brominated flame retardants, clear brine fluids and bromine catalysts used for the synthesis of pure terephthalic acid.
In particular, demand is expected to increase from the food and beverage industry, the chlor-alkali sector in the chemical industry as well as chemical processing, water treatment, agriculture and deicing.
Sulphate of potash, also known as potassium sulphate, is a high-end, specialty fertilizer for chlorine-sensitive crops and also has medical uses to reduce the plasma concentration of potassium when hypokalemia occurs. It is the only manufacturer of sulphate of potash from natural sea brine in India.
Some of the qualitative factors are:
• Leading market position, expansion and growth in bromine and industrial salt.
• High entry barriers in the specialty marine chemicals industry.
• Established infrastructure and integrated production with cost efficiencies.
• Focus on environment and safety.
• Largest Indian exporter of bromine and industrial salt with global customer base.
• Strong and consistent financial performance; and
• Experienced management team, promoters and financial investors and stakeholders
For more information, click www.archeanchemicals.com
The Promoters of Archean Chemical IPO
Chemikas Speciality LLP, Ravi Pendurthi and Ranjit Pendurthi
Archean Chemical IPO Main Objects
Redemption or earlier redemption, in part or full of NCDs issued by the Company
Archean Chemical IPO Details
IPO opens on 9 November 2022
IPO closes on 11 November 2022
Issue Type: Book Built Issue IPO
Issue: up to 35928870 Shares /Rs 1462.31 Crore
* Fresh Issue of 19778870 Sh/ Rs. 805 Cr
* Offer for Sale Up to 16150000 Shares/ Rs. 657.31 Cr
Face Value per share: Rs. 2
Archean Chemical IPO Price Band Per Equity Share: Rs. 386-407
Archean Chemical IPO Retail Lot Size 36 Shares
Archean Chemical IPO Listing will at BSE, NSE
Shares offered to
QIB (75%) 26946744 Shares = Rs 1096.73 Cr
NII (15%) 5389308 Shares = Rs 219.35 Cr
RII (10%) 3592872 Shares = Rs 146.23 Cr
Lot size: 36 Shares = 99802 Forms
How can you apply?
Retail (Min) 36 Shares Rs. 14652
Retail (Max) 468 Shares Rs. 190476
Small HNI (Min) 504 Shares Rs. 205128
Big HNI (Min) 2484 Shares Rs. 1010988
Archean Chemical IPO Analysis IPO Tentative timetable
Anchor portion on 8 November 2022
IPO opens on 9 November 2022
IPO closes on 11 November 2022
Basis of Allotment on 16 November 2022
Unblocking of ASBA 17 November 2022
Credit of Shares 18 November 2022
Listing on 21 November 2022
Archean Chemical IPO Analysis: Financial & Analytical Ratios
Earnings per Share 2019-20 Rs (3.51)
Earnings per Share 2020-21 Rs 6.45
Earnings per Share 2021-22 Rs 18.26
Return on Net Worth: 19-20 (606.95) %
Return on Net Worth: 20-21: 92.04%
Return on Net Worth: 21-22: 72.24%
Equity Shares prior the IPO: 96,333,405 Shares
Book Value of the Share as on 31.03.2022 Rs 25.28
Upper Price Band/last EPS: 22.29
Upper offer price/Book Value Ratio: 16.09
Archean Chemical IPO Peer Comparison (as per RHP):
The IPO Company @ PE Multiple of 22.29
Tata Chemicals @ PE Multiple of 24.16
Deepak Nitrite @ PE Multiple of 24.88
Aarti Industries @ PE Multiple of 19.18
Neogen [email protected] PE Multiple of 79.79
Archean Chemical IPO Lead Managers
IIFL financial Services, ICICI Securities, J M Financial
Registrar to Archean Chemical IPO
Linkin time India Pvt Ltd.
Registered Office of Archean Chemical
No. 2, North Crescent Road, T Nagar, Chennai 600 017, Tamil Nadu, India
Company Secretary & Compliance Officer: Abhishek Pandey
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