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Specialty chemical manufacturer Archean Chemical Industries Ltd’s initial public offering (IPO) was subscribed 30 per cent or 0.30 times at the end of Day 1 of issue opening on Wednesday.
The price band has been fixed between ₹386-407 per share. Investors can bid for a minimum of 36 shares and in multiples thereof.
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Archean Chemical IPO: Should you subscribe?
IPO proceeds to clear debt from earlier expansion; growth dependent on next expansion plans.The issue recieved bids for 59.41 lakh shares as against 1.995 crore shares on offer.
At the upper end of the price band, the IPO size is ₹1,462 crore.
While the retail portion was subscribed nearly 95 per cent, the quota reserved for QIBs and NIIs received bids for 4 per cent and 36 per cent, respectively.
Issue details
While 75 per cent of the issue size has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Archean Chemical IPO consists of a fresh issue of equity shares aggregating up to ₹805 crore and an offer-for-sale (OFS) of up to 1.61 crore shares by the promoter and investors, including the India Resurgence Fund, a joint venture between the Piramal Group and Bain Capital. Promoter Chemikas Speciality will sell 20 lakh shares via OFS, while investors Piramal Natural Resources and India Resurgence Fund will sell 38.35 lakh shares each. India Resurgence Fund II will divest 64.78 lakh shares.
To redeem NCDs
The company plans to use the net proceeds of the fresh issue to redeem non-convertible debentures (NCDs) issued by it.
Anchor investors
The speciality marine chemical manufacturer has raised ₹658 crore from anchor investors ahead of the issue on Tuesday. The company has decided to allocate 1.62 crore at the upper price band of ₹407 a share to anchor investors, including Abu Dhabi Investment Authority, Government Pension Fund Global, Societe Generale and BNP Paribas, SBI Mutual Fund, Nippon India Fund, ICICI Prudential, HDFC Mutual Fund, Goldman Sachs Fund, Ashoka India Opportunities Fund, DSP Fund, IIFL Funds, Kotak Fund Motilal Fund, Tata Mutual Fund, Theleme India Fund, Baroda BNP Paribas Fund and Edelweiss Fund.
Archean Chemical Industries is a manufacturer of speciality marine chemicals in India, and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers worldwide. The company manufactures its products from its brine reserves in the Rann of Kutch, and from the facility near Hajipir in Gujarat.
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