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Archean Chemical Industries plans to raise ₹805 crore through initial public offering (IPO), which opens for subscription on Wednesday.
The IPO comprises fresh share issuance of ₹805 crore and an offer for sale (OFS) of 1.61 crore shares by existing investors. The OFS comprises up to 20 lakh shares by the promoter company Chemikas Speciality LLP and up to 38 lakh shares by India Resurgence Fund, Scheme I, up to 64 lakh shares by India Resurgence Fund, Scheme II and up to 38 lakh shares by Piramal Natural Resources, besides the promoters.
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The IPO is a play on long-term growth prospects in branded healthcare deliveryThe anchor investor bidding opens on Monday. The price band of the issue has been fixed between ₹386 and ₹407 per equity share. Bids can be made for a minimum of 36 equity shares and in multiples of 36 shares thereafter.
The company has proposed to use the net proceeds for funding redemption of non-convertible debentures issued of ₹644 crore and the balance amount towards general corporate purposes.
Largest bromine exporter
Archean Chemical is a leading speciality marine chemical manufacturer focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers globally.
According to Frost & Sullivan, the company is the largest exporter of bromine and industrial salt by volume in India in Fiscal 2021 and has among the lowest cost of production globally in both bromine and industrial salt.
The company produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat and has manufacturing facility near Hajipir in Gujarat.
It sells products to 18 global customers in 13 countries and to 24 domestic customers. Its bromine is used in pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil and gas, and energy storage batteries. Industrial salt is an important raw material used in chemical industry for production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium metal.
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