Specialty chemical manufacturer Archean Chemical Industries Ltd’s initial public offering (IPO) will open for public subscription today.
The price band has been fixed in the range of ₹386-407 per share. Investors can bid for a minimum of 36 shares and in multiples thereof.
The three-day issue will close on Friday (November 11). 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.
At the upper end of the price band, the IPO size is ₹1,462 crore.
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.
The company plans to use the net proceeds of the fresh issue for the redemption of non-convertible debentures (NCDs) issued by it.
The speciality marine chemical manufacturer has raised ₹658 crore from anchor investors ahead of the issue on Tuesday. The company has decided to allocate about 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 NSE 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 leading manufacturer of speciality marine chemicals in India, and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It manufactures its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures products at its facility near Hajipir in Gujarat.