Archean Chemical rises on debut

Shares of Archean Chemical Industries were currently trading at Rs 473.30 at 10:13 IST on the BSE, representing a premium of 16.29% compared with the issue price of Rs 407.

The scrip was listed at a price of Rs 449, at a premium of 10.32% as compared to the issue price.

So far, the stock has hit a high of 473.65 and a low of 443.25. On the BSE, over 5.69 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Archean Chemical Industries was subscribed 32.23 times. The issue opened for bidding on 9 November 2022 and it closed on 11 November 2022. The price band of the IPO was fixed at Rs 386 to 407 per share.

The IPO comprised a fresh issue of equity shares aggregating to Rs 805 crore and an offer for sale of upto 1,61,50,000 equity shares.

Promoter Chemikas Speciality LLP offered 20,00,000 equity shares, leading to a post-issue shareholding of 30.44% from 38.21% pre issue.

The company proposes to utilize the net proceeds of the fresh issue towards redemption or earlier redemption in part or full of non-convertible debentures (NCDs) issued by the company amounting Rs 644 crore and general corporate purposes prepayment.

Archean Chemical Industries is a leading specialty marine chemical manufacturer in India and it focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It is the largest exporter of bromine and industrial salt by volume in India in financial year 2021. As of 30 June 2022, it marketed products to 18 global customers in 13 countries and to 24 domestic customers.

The company reported a net profit of Rs 84.41 crore and net sales of Rs 400.27 crore in the two months ended on June 2022.

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