Archean Chemical Industries Limited | Globe Capital
Archean Chemical Industries Limited
Closed
Price Band
Rs 386-407
IPO Issue Period
Nov 09, 2022 to Nov 11, 2022
Issue Size
1,462.31 Cr
Face value
Rs. 2
Fresh issue
805 Cr.
Offer for sale
657.31 Cr
Minimum Shares for Retail
36 Shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
KFin Technologies Limited
Tentative Listing Date
Nov 21, 2022
QIB
Not More than 75% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 10% of the offer

ICICI Securities Limited
Edelweiss Financial Services Ltd
Kotak Mahindra Capital Company Limited
Nomura Financial Advisory And Securities

Archean Chemical Industries Limited is India’s largest exporter of bromine and industrial salt in Fiscal 2021. The company is the leading speciality marine chemical manufacturer in India and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.

Archean Chemical Industries markets theproducts to 18 global customers in 13 countries and to 24 domestic customers. The company was the largest exporter of industrial salt in India with exports of 2.7 million MT in Fiscal 2021.

Archean Chemical Industries Limited are the largest exporter of Bromine from India. The company is the only manufacturer of sulphate potash in India. The company’s marine chemicals business is predominately conducted on a business-to-business basis both in India and internationally.

The company has an integrated production facility for the bromine, industrial salt, and sulphate of potash operations, located at Hajipir, Gujarat, located on the northern edge of the Rann of Kutch brine fields.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 1,130.44 740.76 608.17
Profit After Tax 188.58 66.61 (36.22)
EPS 18.26 6.45 (3.51)
OPM (%) 42.42% 37.29% 25.79%
PATM (%) 16.68% 8.99% (5.96)%

 

  • Leading market position, expansion and growth in bromine and industrial salt.
  • High entry barriers in the speciality 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.
  • Experienced management team, promoters and financial investors and stakeholders.

The Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale.

The company proposes to utilise the Net Proceeds of the Fresh Issue towards funding the following objects:

1. Redemption or earlier redemption, in part or full, of NCDs issued by the Company.

2. General corporate purposes.

The Company has created a niche place as a specialty chemical manufacturer and exporter. It has started bearing fruits for its undergoing downstream expansions that have helped in improving margins. Based on its FY23 earnings, the issue appears reasonably priced. Hence, Investors may subscribe to the Issue.

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