Specialty chemical stock surges to highest level in 2 months since market debut

Market


Shares of specialty marine chemical manufacturer Archean Chemical Industries Ltd (ACIL) surged more than 8% to hit its highest level on the BSE in Friday’s trading session. The stock surged to 629 per share, highest since its market debut on the exchanges in November last year. 

Archean Chemical shares made their stock market debut on November 21, 2022. The specialty chemical stock has gained more than 15% since its listing, whereas it is up over 54% from its IPO issue price of 407 per share.

The Initial Public Offering (IPO) of Archean Chemical Industries was subscribed 32.23 times earlier in November last year. The public issue had received bids for 64,31,70,528 shares against 1,99,57,325 shares on offer, as per the exchange data.

The initial share sale had 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 at 386-407 per share. The company had raised 658 crore from anchor investors ahead of its public issue.

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. The firm had said it planned to use the proceeds of the fresh issue for the redemption of Non-Convertible Debentures (NCDs) issued by it.

The company in its Annual Report 2021-22 said that, “The outlook for the business remains positive and your Company looks forward to increasing the Bromine production and sales during the coming years. With our competitiveness due to closeness to markets, good quality and freight advantage, your Company is confident of making further inroads into the market by adding new customers on both domestic as well as export front during the coming years.”


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