Archean Chemical Industries IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 16, 2022Archean Chemical Industries Limited is a specialty entity engaged in manufacturing marine chemicals. The company is based in Chennai, India.
Archean Chemical Industries is now set to bring its IPO into the market and go public.
The Archean Chemical Industries IPO comprises a Fresh Issue of Equity Shares aggregating up to Rs. 1,000 crore and an Offer for Sale of up to 1,90,71,288 Equity Shares by the promoter and investor of the company.
Through this Archean Chemical Industries IPO Review, we will guide you through all the aspects of the IPO and its potential as an investment.
| Face Value | Rs. 2 |
| Price Band | Rs. 386 to Rs. 407 per share |
| Listing At | BSE, NSE |
| Min. Order Quantity | 36 shares |
| Listing Date | Nov 21, 2022 |
| Offer for Sale | Rs. 657.31 Crore |
| Fresh Issue | Rs.805 crore |
| IPO Size | Rs. 1,462.31 Crore |
| Tick Size | 1 |
Archean Chemical Industries IPO Overview
Archean Chemical Industries operates in a specialty industry. It produces and exports various marine chemicals to important sectors of the economy.
The entity is now firming up to mop up funds of up to Rs. 2200 crore from the upcoming Archean Chemical Industries IPO.
The entity has filed the preliminary papers with the market regulator and is now waiting for its approval to proceed further with the IPO launch.
Archean Chemical Industries IPO Important Dates
| Events | Date |
| IPO Opening Date | Nov 9, 2022 |
| IPO Closing Date | Nov 11, 2022 |
| Basis of Allotment Finalization | Nov 16, 2022 |
| Refunds Initiation | Nov 17, 2022 |
| Credit of Shares to Demat Account | Nov 18, 2022 |
| Share Listing Date | Nov 21, 2022 |
Archean Chemical Industries IPO Dates are not determined by the company as of now. The company will decide on the dates after receiving approval from SEBI for its DRHP.
The documents were filed with the capital market regulator in February 2022.
Once the DRHP is given the heads up, the company will file the Red Herring Prospectus stating the Bid opening and closing dates and finalizing the listing date.
Archean Chemical IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs. 386 to Rs. 407 per share |
| Offer for Sale | Rs. 657.31 Crore |
| Fresh Issue | Rs.805 crore |
| IPO Size | Rs. 1,462.31 Crore |
Archean Chemical Industries IPO Size will be made of the equity shares to be issued through IPO. In the IPO, a promoter and an investor of the company will participate and sell their shares.
The face value of the offered shares is Rs. 2 each. The Archean Chemical Industries IPO Price will be determined through the Book Building Process by the company and selling shareholders.
The offered shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Archean Chemical Industries IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 15 November 2022 | Rs. 100 | NA | NA |
| 14 November 2022 | Rs. 100 | NA | NA |
| 12 November 2022 | Rs. 80 | NA | NA |
| 11 November 2022 | Rs. 80 | NA | NA |
| 10 November 2022 | Rs. 80 | NA | NA |
| 09 November 2022 | Rs. 80 | NA | NA |
| 08 November 2022 | Rs. 70 | NA | NA |
| 07 November 2022 | Rs. 60 | NA | NA |
| 06 November 2022 | Rs. 70 | NA | NA |
Grey Market Premium or GMP is an essential element that works to determine the share price. GMP is the price at which the shares of the issuer company are bought and sold in the Grey Market.
Before the shares of a company are offered to the public through Initial Public Offering, they are considered grey market stock if they are traded.
Archean Chemical Industries IPO GMP is updated now after the IPO date is finalized.
Archean Chemical IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 9th Nov | 0.04x | 0.36x | 0.95x | 0.30x |
| 2nd Day – 10th Nov | 0.54x | 2.07x | 2.94x | 1.41x |
| 3rd Day – 11th Nov | 48.91x | 14.90x | 9.96x | 32.23x |
| Shares Offered or Net Issue | 10,706,095 | 5,550,738 | 3,700,492 | 19,957,325 |
Subscription is like placing an order to buy a commodity in advance. Here, the commodity to be bought is equity shares of the issuer company, and the share price is unknown.
Here, the investors place their bids with the company as per the Price Band, a price range in which you can order.
The investors place their bids to get the allotment of shares of the company. Archean Chemical Industries IPO Subscription will commence after RHP is filed with RoC.
Archean Chemical Industries IPO Allotment Status
Allotment of shares is the process of share distribution to the bidders whose applications have been accepted by the company. In an IPO, a company offers to issue shares to the public in exchange for cash.
Archean Chemical Industries IPO Allotment basis will be established after the IPO is closed for subscription and the company has received applications for the issue.
Archean Chemical Industries IPO Live Performance
You can easily look over the Archean Chemical Industries IPO Performance for the day from here. And also, check the Archean Chemical Industries IPO Price for the day and its changes.
Subscribe to Archean Chemical Industries IPO – Open Free Demat Account Now!
Latest Archean Chemical Industries IPO News
Archean Chemical Industries IPO is soon launching on 9th November. The company is a leading specialty marine chemical manufacturer in India. They are engaged in the production and selling of bromine, industrial salt, and sulphate of potash.
The IPO will remain open for three days during which the investors and traders can bid for the allotment of shares in this company.
Archean Chemical Industries – Company Review
Archean Chemical Industries Limited was set up in 2003 as a partnership firm, and its name was Archean Chemical Industries.
In the year 2009, the organization was converted to a private limited company, “Archean Chemical Industries Private Limited .”
And after that, in November 2021, the company was converted to a public limited company, and subsequently, its name was changed to “Archean Chemical Industries Limited.”
The entity manufactures chemicals like bromine, sulfate of potash, and industrial salt. The entity produces and exports these items to customers from around the world.
Products or Services
Archean Chemical Industries Limited manufactures three products – Industrial Salt, Bromine, and Sulphate of Potash.
Through these three verticals, the entity caters to the varied needs of segments like water treatment, pharma, energy storage, agrochemicals, flame retardant, oil & gas, aluminum, agriculture, glass industry, textile dye, and additives.
All the company’s produce is put to some element used in various jobs; for instance, bromine works as key initial level material and is used in pharma, oil & gas, agrochemicals, and other sectors.
And Industrial salt has wide use in the chemical industry in the form of raw material to produce further chemicals.
Promoters and Holding
The promoters of Archean Chemical Industries Limited are:
- Chemikas Speciality LLP
- Ravi Pendurthi
- Ranjit Pendurthi
The management of the company consists of the following:
- Ranjit Pendurthi, in the position of Managing Director
- Ravi Pendurthi, in the position of Non-Executive Director
- Subrahmanyam Meenakshisundaram, in the position of Non-Executive Director
- Padma Chandrasekaran, in the position of Independent Director
- Chittoor Ghatambu Sethuram, in the position of Independent Director
- Kandheri Munaswamy Mohandass, in the position of Independent Director
- Bhupathi K, in the position of vice-president – operations
- Sai Ram Edara, in the position of Chief Financial Officer
- Abhishek Pandey, in the position of Company Secretary and Compliance Officer
Is Archean Chemical Industries good for Investment?
Archean Chemical Industries Limited is close to completing two decades in operations. It started as a partnership firm and has now been shaped as a competitive entity in specialty chemical manufacturing.
The company widely manufactures industrial salt, bromine, and sulfate of potash and delivers its services to many sectors and industries.
The company also exports its products to other countries and has a wide presence in the international market.
They manufacture through their manufacturing facility in Greater Rann of Kutch, Gujarat, India. The process undertaken by the entity is eco-friendly, and they pride themselves as a Green Organization.
Archean Chemical Industries IPO is also a step in the big picture of becoming a leading entity in the industry.
Archean Chemical Industries Financial Statements
| Amount (in INR & Million) | ||||
| 30-Sept-21 | Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Assets | 14,886.45 | 14,324.18 | 14,286.03 | 12,605.13 |
| Revenue | 4,590.87 | 7,547.90 | 6,169.97 | 5,729.06 |
| Expense | 3,808.82 | 6,643.25 | 6,337.03 | 6,597.83 |
| Profit After Tax | 580.59 | 666.06 | (362.35) | 399.72 |
The Draft Red Herring Prospectus of the Archean Chemical Industries IPO consists of the financial aspects of the company over the past years.
As per the DRHP, the company reflected an escalating graph regarding its total income. The Total income posted by the company for the years 2019, 2020, and 2021 were – 5,729.06 million, 6,169.97 million, and 7,547.90 million.
Talking about profits, the company, after incurring a loss of 167.06 million in 2020, Archean Chemical Industries bounced back with an impressive profit figure of 904.65 million in the succeeding year.
The DRHP also states the financial results for the half-year of the financial year 2021-22. According to that, Archean Chemical Industries clocked a profit of 782.05 million on a total income of 4,590.87 million.
| Earnings per Equity Share (in Million) | ||||
| 30-Sept-21 | Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Basic & Diluted | 5.62 | 6.45 | (3.51) | 5.44 |
The earnings per Share of Archean Chemical Industries as of 31st March 2021 was Rs. 6.45, and in September 2021, it was Rs. 5.62. Earlier to that, in March 2020, the company’s EPS was negative.
Archean Chemical Industries IPO Review
Archean Chemical Industries IPO will be of about Rs. 2000 to Rs. 2000 crore. The IPO consists of a Fresh share issue and an Offer for Sale.
Promoter Chemikas Speciality LLP and existing shareholders, namely – India Resurgence Fund, Scheme I, India Resurgence Fund, Scheme II and Piramal Natural Resources Private Limited, will be selling their shares.
The company will receive the fresh issue proceeds only, and the selling shareholders will be entitled to the proceeds from the OFS. The company will utilize the IPO sum to redeem Non-convertible debentures issued by it earlier and for other general corporate purposes.
The debenture redemption will bring the company’s financial standing to an even better state. It will improve its Debt-Equity ratio, and the company will be able to optimize its funds and operations more efficiently.
Archean Chemical Industries IPO Details
Here are few more details you need to know before investing in Archean Chemical Industries IPO –
Archean Chemical Industries IPO Issue Object
The Archean Chemical Industries has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Redemption or earlier redemption, in part or full, of NCDs issued by our Company; and
- General corporate purposes (collectively, referred to herein as the “Objects”).
Archean Chemical Industries IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Leading market position, expansion and growth in bromine and industrial salt;
- High entry barriers in the specialty marine chemicals industry;
- Established infrastructure and integrated production with cost efficiencies;
- Focus on environment and safety;
- Largest Indian exporter of bromine and industrial salt with a global customer base;
- Strong and consistent financial performance; and
- Experienced management team, promoters and financial investors and stakeholders.
Quantitative factors are:
| Basic EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 6.45 | 92.04 | 7.01 |
| 31-Mar-20 | (3.51) | (606.95) | – |
| Mar-19 | 5.44 | 94.34 | – |
Archean Chemical Industries IPO Lead Managers
Here are the list of Lead managers –
- IIFL Securities Limited
- ICICI Securities Limited
- JM Financial Limited
Archean Chemical Industries IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
C 101, 247 Park
L.B.S Marg Vikhroli (West)
Mumbai 400 083 Maharashtra, India
Tel: +91 22 4918 6200
E-mail: archean.ipo@linkintime.co.in
Investor Grievance E-mail: archean.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Archean Chemical Industries IPO – Other Details
- Statutory Auditor – PKF Sridhar & Santhanam LLP
- Legal Counsel to the Company – J. Sagar Associate
- Bankers to the Company – ICICI Bank Limited
Archean Chemical Industries IPO Verdict By Stockbrokers
The reviews of Archean Chemical Industries IPO are highly on the up side and the votes mostly goes on to apply. The company is highly profitable and has experience of decades in its field. Angel One, Axis Capital, and Reliance Securities have elaborated this IPO as a a good opportunity for the investors and have given their word as Apply.
Archean Chemical Industries IPO – Conclusion
The Archean Chemical Industries IPO is a combination of fresh issues, and OFS and the company will be utilizing the proceeds for the redemption of its NCDs.
The company’s financial statements show a positive aspect of the company’s operations. The products of Archean Chemical Industries are also exported to various other countries, which offers it exposure to the wide world.
The company is decent and can offer good outcomes overtime to the investors from the investment aspect. A moderate investment in the entity will be a good call.
To Subscribe to Archean Chemical Industries IPO – Open Demat Account Now!
Archean Chemical Industries IPO Review FAQs
Check out the FAQs on Archean Chemical Industries IPO –
What is the Issue Size of Archean Chemical Industries IPO?
The Company is making an initial public offer of 35,928,870 equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Archean Chemical Industries IPO?
The price band for this particular IPO ranges between Rs. 386 to Rs. 407 per share. As far as the face value of the share is of concern, it is Rs.2 per share.
What is the Archean Chemical Industries IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Nov 9, 2022, while the closing date is set at Nov 11, 2022.
What is the Archean Chemical IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on Nov 16, 2022, refund initiation is on Nov 17, 2022, credit of shares is on Nov 18, 2022, and share listing date is on Nov 21, 2022.
What is the Archean Chemical IPO Listing Date?
Shares of this company shall be listed in the exchanges Nov 21, 2022. The date, when the listing would be done, is stagnant on Nov 21, 2022.
Who is the Registrar of Archean Chemical Industries IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. LINK INTIME INDIA PRIVATE LIMITED. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Archean Chemical IPO?
Here are the promoters of this IPO – CHEMIKAS SPECIALITY LLP, RAVI PENDURTHI AND RANJIT PENDURTHI. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Archean Chemical Industries IPO?
They have obtained the GMP of this IPO and it is Rs. 100. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Archean Chemical IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Archean Chemical Industries Company?
We have the information of company financials, and according to that, we have the figures from the last few years to provide.
PAT for the financial year 2021 in Million is 666.06, 2020 is (362.35), 2019 is 399.72. PAT from Sept 2021 is 580.59.
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