Archean Chemical Industries Limited proposes to open its initial public offering of equity shares of face value of Rs 2 each on Wednesday, November 09, 2022. The initial public offering comprises of fresh issue of Equity Shares aggregating up to Rs 8,050.00 million and an offer for sale of up to 16,150,000 Equity Shares. The anchor investor bidding date shall be Monday, November 7, 2022. The Offer will close on Friday, November 11, 2022.
The Price Band of the Offer has been fixed at Rs 386 to Rs 407 per Equity Share. Bids can be made for a minimum of 36 Equity Shares and in multiples of 36 Equity Shares thereafter.
- IPO Opens on: Wednesday, November 09, 2022
- IPO Closes on: Friday, November 11, 2022
- Face Value: Rs 2
- Price Band: Rs 386 to Rs 407 per Equity Share
- Bidding: Minimum of 36 Equity Shares and in multiples
AICL proposes to utilize the net proceeds of the fresh Issue towards funding: (i) redemption or earlier redemption, in part or full, of non-convertible debentures issued by the Company amounting to Rs 6,440.00 million; and (ii) the balance amount towards general corporate purposes.
Offer for Sale
The Offer for Sale comprises of up to 2,000,000 Equity Shares by Chemikas Speciality LLP and up to 3,835,562 Equity Shares by India Resurgence Fund, Scheme I, up to 6,478,876 Equity Shares by India Resurgence Fund, Scheme II, up to 3,835,562 Equity Shares by Piramal Natural Resources Private Limited. The Equity Shares are being offered through the red herring prospectus of the Company dated October 31, 2022 filed with Registrar of Companies, Tamil Nadu at Chennai and are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited. For the purposes of the Offer, the Designated Stock Exchange shall be NSE. The Offer is being made through the book building process. IIFL Securities Limited, ICICI Securities Limited, and JM Financial Limited are the Book Running Lead Managers to the Offer.
The Company
Archean Chemical Industries Limited is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. According to Frost & Sullivan, the Company is the largest exporter of bromine and industrial salt by volume in India in Fiscal 2021 and have amongst the lowest cost of production globally in both bromine and industrial salt. (Source: Company Commissioned F&S Report).
The Products
The Company produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and it manufactures its products at its facility near Hajipir in Gujarat. As of June 30, 2022, the Company marketed its products to 18 global customers in 13 countries and to 24 domestic customers. Its bromine is used as key initial level materials, which have applications in the pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage batteries. Industrial salt is an important raw material used in chemical industry for production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium metal.
