Archean Chemical IPO: GMP as all eyes on shares listing after allotment

Market


The finalisation of the basis of share allotment for Archean Chemical’s initial public offering (IPO) has been done this week and all eyes are now on the company’s shares listing which is expected to be next week. The public issue was subscribed 32.23 times by the close of the subscription period last week on Friday, November 11, 2022.

As per market observers, Archean Chemical shares are commanding a premium (GMP) of 112 in the grey market today. The shares of the company are expected to list on the leading stock exchanges BSE and NSE on Monday, November 21, 2022.

Archean Chemical IPO consisted 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. The price range for the offer was 386-407 per share. The firm plans to use the proceeds of the fresh issue for the redemption of Non-Convertible Debentures (NCDs) issued by it.

The company raised 658 crore from anchor investors ahead of its issue. The firm allocated 1,61,67,991 equity shares to anchor investors at 407 apiece. Goldman Sachs, Abu Dhabi Investment Authority, Segantii India Mauritius, BNP Paribas, Societe Generale, Government Pension Fund Global, ICICI Prudential, DSP Small Cap Fund, Tata Mutual Fund (MF), SBI MF, Nippon India MF and Aditya Birla Sunlife Insurance have invested in the company via anchor book.

The quota meant for Qualified Institutional Buyers (QIBs) received 48.91 times subscription, while the non-institutional investors category was subscribed 14.90 times and Retail Individual Investors (RIIs) was subscribed 9.96 times.

Archean Chemical Industries Ltd is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It produces 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. 

“High entry barriers in the speciality marine chemicals industry bodes well for the company. In view of market leading position, established infrastructure, integrated production with cost efficiencies, consistent financial performance, high entry barriers for competitor, an experienced management team and attractive valuation,” Reliance Securities had said in an IPO note.

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