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All that you should know about the Company before applying for the IPO

November 07, 2022     

The public issue of equity shares of ARCHEAN CHEMICAL INDUSTRIES LIMITED will open for subscription on November 09, 2022 and closes on November 11, 2022. It is expected to list on the stock exchanges on November 21, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Incorporated in 2003, Archean is a leading specialty marine chemical manufacturer in India. It focuses on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. They were India’s largest exporter of bromine and industrial salt in FY2021 and have one of the lowest production costs in the world for bromine and industrial salt. Moreover, they are the only company in India that manufactures sulphate of potash from sea brine.

The company makes its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and manufactures products at its facility near Hajipir in Gujarat. As of June 30, 2022, they marketed their products to 18 global customers in 13 countries and 24 domestic customers.

The company commanded a leadership position in Indian bromine merchant sales by volume and was the largest exporter of industrial salt in India in FY2021. In the three months ended June 30, 2022, and in FY2022, FY2021 and FY2020, they exported 100% of their industrial salt production, primarily to customers in Japan and China. The transportation of bromine is also dangerous and requires nickel and lead lined ISO containers, of which the company had 228 such containers (owned and leased) for their export business as of June 30, 2022.

The key geographies to which they export products include China, Japan, South Korea, Qatar, Belgium and the Netherlands. Some of their 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.

Who are the Promoters of the Company?

Chemikas Speciality LLP, Ravi Pendurthi and Ranjit Pendurthi

Positives about the Company

  • 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
  • Indian exporter of bromine and industrial salt with global customer base
  • Strong and consistent financial performance
  • Experienced management team, promoters and financial investors and stakeholders.

Who are its listed peers?

  • Tata Chemicals Limited
  • Deepak Nitrite Limited
  • Aarti Industries Limited
  • Neogen Chemicals Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

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

  • Redemption or earlier redemption, in part or full, of NCDs issued by the Company
  • General corporate purposes

IPO Details

IPO Size ₹1,462.31 Crore*
Offer Mix Freash Issue ₹805 Crore + Offer For Sell ₹657.31 Crore
Price Band ₹ 386 - ₹ 407
Lot Size 36 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,652 (1 lot) | Max. ₹ 1,90,476 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Link Intime India Private Limited
Cut-off time for UPI Mandate Confirmation 11-November-2022 (up to 05:00 PM)
* at upper price band

Category Wise Availability*

QIB ₹ 1,096.73 Crore
(75% of the Issue Size)
NIB ₹ 219.35 Crore
(15% of the Issue Size)
Retail ₹ 146.23 Crore
(10% of the Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens November 09, 2022
IPO Closes November 11, 2022
Finalization of the basis of allotment November 16, 2022
Unblocking of funds / Initiation of refunds November 17, 2022
Credit of equity shares to Demat accounts November 18, 2022
Listing of equity shares November 21, 2022
Source: Company RHP  Alternate Text


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