Archean Chemical Makes Strong Market Debut, Shares Climb Over 12% In Debut Trade

Archean Chemical Industries share sale via Initial Public Offering (IPO), which ended on November 11, saw good response from the investor community as the issue was subscribed 32.23 times

Outlook Business Team

Updated on: 21 November 2022 6:23 pm

Archean Chemical Industries made strong stock market debut on Monday. The stock opened for trading at Rs 449, up 10.31 per cent from its issue price of Rs 407 on the BSE. The stock rose as much as 17 per cent to hit an intraday high of Rs 476 on the BSE. Archean Chemical Industries ended with a gain of 12.5 per cent.

Archean Chemical Industries share sale via Initial Public Offering (IPO), which ended on November 11, saw good response from the investor community as the issue was subscribed 32.23 times. Qualified institutional buyers (QIBs) which include large financial institutions like banks and mutual funds had shown keen interest in the IPO as portion reserved for them was subscribed 49 times, shares set aside for non institutional investors was subscribed 15 times and pie set aside for retail investors was booked 10 times.

75 per cent of the shares in the IPO were reserved for QIBs, 15 per cent for NIIs and 10 per cent for retail investors.

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Archean Chemical Industries raised Rs 1,462 crore form the IPO which comprised of fresh issue worth Rs 805 crore and an Offer For Sale (OFS) worth Rs 657 crore by the promoter and investors. The company had priced the IPO in price band of Rs 386-407 per share and retail investors were allowed to bid for minimum one lot of 36 shares up to maximum of 13 lots. At the upper end of the price band one lot of IPO was for Rs 14,652.

The company will utilise net proceeds of the fresh issue for redemption or earlier redemption, in part or full, of NCDs issued by the company and for general corporate purposes.

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 the products 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.