Archean Chemical Industries Limited is a leading specialty marine chemical manufacturer and focused on producing and exporting
bromine, industrial salt, and sulphate of potash to customers around the world. The company is the largest exporter of bromine and industrial salt in Fiscal 2021 and have amongst the lowest cost of production globally in both bromine and industrial salt.
It produces its products from its own brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures its products at its facility near Hajipir in Gujarat.
The key geographies for exports include China, Japan, South Korea, Qatar, Belgium and the Netherlands. Some of the major customers include Sojitz Corporation, which is also a shareholder in the Company, Shandong Tianyi Chemical Corporation, Unibrom Corporation, Wanhau Chemicals and Qatar Vinyl Company Limited.
The bromine produced by Archean is used as key initial level material, which has applications in pharma, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage segments. Industrial salt is an important raw material used in the chemical industry for the production of various other chemicals and compounds and sulphate of potash is used as a fertilizer and also has medical uses to reduce the plasma concentration of potassium when hypokalaemia occurs.
Archean Chemical IPO – Details
| IPO Opening Date | 09 November 2022 |
| IPO Closing Date | 11 November 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹1462.31 Crore |
| Face Value | ₹2 per equity share |
| IPO Price | ₹386 – ₹407 |
| Market Lot | 36 Shares |
| Min Order | 36 Shares |
| Listing At | BSE NSE |
| Register | Link Intime India Private Limited |
| QIB Shares Offered | 75% |
| Retail Shares Offered | 10% |
| NII (HNI) Shares Offered | 15% |
Archean Chemical IPO – Date Schedule
| IPO Open Date | 09 November 2022 |
| IPO Close Date | 11 November 2022 |
| Basis of Allotment Date | 16 November 2022 |
| Initiation of Refunds | 17 November 2022 |
| Credit of Shares to Demat Account | 18 November 2022 |
| IPO Listing Date | 21 November 2022 |
Archean Chemical IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 36 | 14,652 |
| Maximum | 13 | 468 | 1,90,476 |
Competitive Strengths
- 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 global customer base;
- Strong and consistent financial performance; and
- Experienced management team, promoters and financial investors and stakeholders.
Company Promoters
- Chemikas Speciality LLP
- Ravi Pendurthi
- Ranjit Pendurthi
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax |
|---|---|---|---|
| 31 March 2019 | 572.90 | 659.78 | 39.97 |
| 31 March 2020 | 617.01 | 633.70 | -36.21 |
| 31 March 2021 | 754.79 | 664.32 | 66.60 |
| 30 June 2021 | 201.76 | 176.94 | 18.69 |
| 30 September 2021 | 459.08 | 380.88 | 58.05 |
| 31 March 2022 | 1142.82 | 891.83 | 188.58 |
| 30 June 2022 | 408.82 | 295.97 | 84.40 |
Object Of The Issue
- Redemption or earlier redemption, in part or full, of NCDs issued by our Company; and
- General corporate purposes.
Archean Chemical IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Tata Chemicals Limited | 89.15 |
| 2 | 2 | Deepak Nitrite Limited | 36.66 |
| 3 | 5 | Aarti Industries Limited | 32.45 |
| 4 | 10 | Neogen Chemicals Limited | 114.36 |
Archean Chemical IPO Strengths
- 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.
- Largest Indian exporter of bromine and industrial salt with global customer base.
Archean Chemical IPO Risks
- Slowdown or shutdown in the manufacturing operations or strikes, work stoppages or increased wage demands by the employees.
- Non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations.
- Unsuccessful development of new bromine derivative products or continuation of product portfolio expansion in a timely and cost-effective.
- Reliance on three principal products for substantially growth of sales could have an adverse effect on our business.
- The manufacturing facilities are located only in Gujarat, hence the operations are exposed to geographic risks such as weather and natural occurrences as well as regulatory, economic, demographic and other changes in Gujarat.
- The company is dependent on third party transportation and logistics service providers thus any increase in the charges of these entities could adversely affect the financial condition.
Archean Chemical IPO Promoter Holding
| Pre Issue Share Holding | 65.58% |
| Post Issue Share Holding | 53.41% |
Archean Chemical IPO Prospectus
Company Contact Information
| Archean Chemical Industries Limited No. 2, North Crescent Road, T Nagar, Chennai 600 017, Tamil Nadu, India Phone: +91 44 6109 9999 Email: info@archeanchemicals.com Website: www.archeanchemicals.com |
Archean Chemical IPO Registrar
| 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 Email: archean.ipo@linkintime.co.in Website: www.linkintime.co.in |
Archean Chemical IPO Lead Manager(s)
| 1. ICICI Securities Limited 2. IIFL Securities Limited 3. JM Financial Limited |
Archean Chemical IPO FAQs
| What is Archean Chemical IPO? Archean Chemical IPO is a main-board IPO. The issue is priced at ₹386 to ₹407 per equity share. The IPO is to be listed on BSE NSE. |
| When Archean Chemical IPO will open? The IPO is to open on 09 November 2022 for QIB, NII and Retail Investors. |
| What is Archean Chemical IPO Investors Portion? The investors’ portion for QIB-75%, NII-15%, and Retail 10%. |
| How to Archean Chemical IPO? You can apply Archean Chemical IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Archean Chemical IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Archean Chemical”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Archean Chemical IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Archean Chemical”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Archean Chemical IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Archean Chemical”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Archean Chemical IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Archean Chemical”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Archean Chemical IPO Size? Archean Chemical IPO size is ₹1462.31 crores. |
| What is Archean Chemical IPO Price Band? Archean Chemical IPO Price Band is ₹386 to ₹407. |
| What is Archean Chemical IPO Minimum and Maximum Lot Size? The minimum bid is 13 Shares with ₹14,652 amount while the maximum bid is 468 shares with ₹1,90,476. |
| What is the Archean Chemical IPO Allotment Date? Archean Chemical IPO allotment date is 16 November 2022. |
| What is the Archean Chemical IPO Listing Date? Archean Chemical IPO listing date is 21 November 2022. The IPO is to list on BSE NSE. |
