Archean Chemical Industries IPO Assessment: Archean Chemical Industries Restricted is developing with its Preliminary Public Providing. The IPO will open for subscription on November ninth, 2022, and shut on November eleventh, 2022.
It’s seeking to increase Rs 1,462.31 Crores, out of which Rs 805 crores might be a recent subject and the remaining Rs 657.31 Crores might be a suggestion on the market. On this article, we are going to take a look at the Archean Chemical Industries IPO Assessment 2022 and analyze its strengths and weaknesses. Preserve studying to search out out!
Archean Chemical Industries IPO Assessment – About The Firm
Archean Chemical Industries is a number one specialty marine chemical producer in India that’s targeted on producing and exporting bromine, industrial salt, and sulfate of potash to clients around the globe.
The corporate has marketed its merchandise to 13 world clients in 13 nations together with 29 home clients.
The merchandise of the corporate are utilized in industries that embody prescribed drugs, agrochemicals, water therapy, flame retardant, components, oil & gasoline, and vitality storage batteries.
The product portfolio of the corporate
(Supply: DRHP of the corporate)
The opponents of the corporate
(Supply: DRHP of the corporate)
Archean Chemical Industries IPO Assessment – Monetary Highlights
(Supply: DRHP of the corporate)
Archean Chemical Industries IPO Assessment – Trade Overview
Between 2015-2020, the Indian specialty chemical substances phase grew sooner than the Indian commodity chemical substances phase (10.4% vs. 8.7%). Within the subsequent 5 years, the Indian specialty chemical substances phase is anticipated to develop at a CAGR of 11.2%.
To spice up the business additional, the federal government has allowed 100% International Direct Funding (FDI). In accordance with the Firm Commissioned F&S Report, complete FDI influx within the chemical substances (apart from fertilizers) sector in India reached US$17.77 billion between April 2000 and June 2020.
In accordance with the Firm Commissioned F&S Report, with plentiful assets, India’s bromine capability has developed quickly, from 20,000 MT within the yr 2008 to 60,000 MT within the yr 2020.
Within the yr 2020, India ranked sixth globally within the export of business salt. As per the identical report, the worldwide industrial salt business will develop at a CAGR of two.8% from 157 million MT in 2020 to 185 million MT in 2025.
The general Sulphate of Potash (SOP) market in India was roughly 55,757 MT in Fiscal 2020. In accordance with the Firm Commissioned F&S Report, the expansion in SOP in India is anticipated to observe the worldwide development of roughly 6% till the yr 2025.
Strengths of the Firm
The corporate was the most important exporter of bromine and industrial salt in India in Fiscal 2021.The corporate has a aggressive benefit because the business through which it operates has excessive entry boundaries.The corporate has made enormous capital expenditures to construct built-in manufacturing websites which have confirmed to be cost-effective for the corporate.The corporate has an Skilled administration workforce, promoters, monetary traders, and stakeholders.The corporate has a historical past of robust and constant monetary efficiency.
Weaknesses of the Firm
Bromine and sure uncooked supplies utilized by the corporate are hazardous in nature. Thus, it has an inherent operational danger.The corporate is topic to intensive security, well being, environmental, and labor legal guidelines.Because the firm has an intensive presence within the worldwide markets it’s topic to trade price fluctuations.The corporate relies on third-party transportation and logistics service suppliers. Any disruptions can have an effect on the enterprise.The corporate doesn’t personal any patents and its brand shouldn’t be registered as a trademark. Subsequently, defending mental property is essential to the success of their enterprise.
Archean Chemical Industries IPO Assessment – GMP
The shares of Archean Chemical Industries traded at a premium of 14.74% within the gray market on November seventh, 2022. The shares tarded at Rs 467. This offers it a premium of Rs 60 per share over the cap worth of Rs 407.
Archean Chemical Industries – Key IPO Info
Promoters: Chemikas Speciality LLP, Ravi Pendurthi, and Ranjit Pendurthi.
E-book Working Lead Managers: JM Monetary Restricted, ICICI Securities Restricted, and IIFL Securities Restricted.
Registrar To The Provide: Hyperlink Intime India Personal Restricted
ParticularsDetails
IPO Measurement₹1,462.31 Crore
Recent Situation₹805 Crore
Provide for Sale (OFS)₹657.31 Crore
Opening dateNovember 9, 2022
Closing dateNovember 11, 2022
Face Worth₹2 per share
Worth Band₹386 to ₹407 per share
Lot Size36 Shares
Minimal Lot Size1 (36 Shares)
Most Lot Size13 (468 shares)
Itemizing DateNovember 21, 2022
The Goal of the Situation
The Internet Proceeds from the Recent Situation are proposed to be utilized for:
Redemption or earlier redemption, partially or full, of NCDs issued by the corporate; andGeneral company functions
In Closing
On this article, we appeared on the particulars of Archean Chemical Industries IPO Assessment 2022. Analysts stay divided on the IPO and its potential features. It is a good alternative for traders to look into the corporate and analyze its strengths and weaknesses. That’s it for this publish.
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