Archean Chemical IPO share listing date today. Experts predict ‘strong’ debut

Market


Archean Chemical IPO: Shares of Archean Chemical Industries Ltd are going to hit Dalal Street today as Archean Chemical IPO listing date has been fixed on 21st November 2022. As per the information available on BSE website, effective from Monday, November 21, 2022, the equity shares of Archean Chemical Industries Ltd shall be listed and admitted to dealings on the Indian exchanges in the list of ‘B’ group of securities. This means, Archean Chemical shares will be a part of Special Pre-open Session (SPOS) today. 

Meanwhile, ahead of Archean Chemical IPO listing, shares of the chemical company are available at a premium of 124 in grey market today. This means, Archean Chemical IPO GMP (grey market premium) today is 124.

Like grey market, stock market experts are also highly bullish on Archean Chemical share debut. According to experts, Archean Chemical share price may open today at Indian bourses with hefty premium. They said that Archean Chemical IPO may list at around 35 to 40 per cent premium. On Archean Chemical IPO listing price, they said that much will depend on the market mood. In case of strong market opening, Archean Chemical share price may open at around 570 whereas in case of weak market opening, it may list at around 520 apiece levels.

Experts’ verdict on Archean Chemical IPO listing

Speaking on Archean Chemical IPO listing, Abhay Doshi, Founder at UnlistedArena.com said, “As the Dalal Street is ramped up with number of IPOs and listings, the investors have remained very selective in IPOs. Archean Chemical IPO also received a very decent response. Despite being richly priced, the issue captivated investors interest as the electronics manufacturing industry is in focus and the order book is also strong. Recent positive listings should cheer up the sentiment. The issue may list at a hefty premium of 35 to 40 per cent.”

Predicting Archean Chemical IPO listing price, Ravi Singhal, CEO at GCL Securities said, “Archean Chemical Industries Limited has reported impressive first quarter results in current financial year. However, much will depend upon the market opening today. If the stock market opens higher today then in that case we may expect Archean Chemical share price to open around 570 apiece levels whereas in case of weak stock market opening, Archean Chemical shares may debut around 520 apiece levels.”

Manoj Dalmia, Founder & Director at Proficient Equities said, “The company is the leading specialist marine chemical manufacturer in India and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. The GMP for the stock has remained above 110 for last few days and hence we expect listing premium to the tune of 30 per cent, irrespective of the market mood.”

Archean Chemical: Hold or sell?

Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, “Investors responded positively to the issue, particularly the institutional side, which was subscribed 48.91 times while the retail side was subscribed 9.96 times, and the current GMP is 90, or 22% above the issue price. The issue was priced at a P/E of 22.82 based on annualized FY22 numbers. However, the company deserves this premium multiple due to its phenomenal growth prospects. Nevertheless, the high debt-to-equity ratio (3.25 based on March, FY 22 consolidated numbers), high product, key customer concentration, and restructuring of loans during FY 17–18 make us averse to the issue. Furthermore, the three years of data are insufficient to conclude the sustainability of high growth and margins.”

Archean Chemical IPO GMP today

According to market observers, Archean Chemical IPO GMP today is 124 that means grey market is expecting that Archean Chemical IPO listing would be around 531 ( 407 + 124), which is near 30 per cent higher from its issue price of 386 to 407 per equity share.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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