Are you looking for information on the Archean Chemical IPO? You're in the right place! In this blog post, we'll give you all the details on the upcoming IPO, including the Archean Chemical IPO review, price, allotment, and listing dates. We'll also provide a link to the Archean Chemical IPO form, so you can apply for the IPO when it opens.
Archean Chemical IPO Review (Apply or Not)
Archean Chemical is all set to hit the market with its IPO on 9th November. The company plans to raise around ₹1,492 crores through this move, which would be used for various purposes such as expanding its business and repaying debts.
The IPO comprises of a fresh issue of ₹805 crores and offer for sale up to 16,150,000 equity shares of ₹2 each. The retail quota is 10%, QIB is 75%, and HNI is 15%.
So, should you apply for the Archean Chemical IPO? Let's take a look at the company in detail to find out.
Archean Chemical Industries Ltd is engaged in the business of manufacturing and marketing of specialty chemicals. The company has two manufacturing units located in Maharashtra and Telangana. It also has an R&D unit located in Mumbai.
The company's product portfolio includes surfactants, emulsifiers, solvents, fragrances, etc. Its products are used in detergents, soaps, cosmetics, textile processing, pharmaceuticals, etc. Archean Chemical has a strong clientele base that includes major names such as Hindustan Unilever Limited, Procter & Gamble Home Products Pvt Ltd., ITC Limited, Godrej Consumer Products Limited, etc.
For the FY 2020-21, Archean Chemical reported a total income of ₹937 crores and a net profit of ₹74 crores. For the nine months ended December 31st 2020, the company reported a total income of ₹683 crores with a net profit of ₹61 crores.
From the financials perspective, Archean Chemical seems to be doing well and is on track to grow further in the future. Hence, we believe that it is a good investment opportunity and recommend that you apply for the IPO.
Brokerage Firm IPO Review
Archean Chemical IPO: Brokerage Firm Review
The Archean Chemical IPO is scheduled to hit the market on November 9, 2022 and will close on November 11, 2022. The company plans to raise around ₹1,492 crores via the IPO that comprises a fresh issue of ₹805 crores and an offer for sale of up to 16,150,000 equity shares of ₹2 each. The retail quota is 10%, QIB is 75%, and HNI is 15%.
In this article, we will take a look at what some of the leading brokerage firms have to say about the Archean Chemical IPO.
Leading investment bank Motilal Oswal has given a subscribe rating to the Archean Chemical IPO with a price band of ₹1,760-1,766 per share. According to the research note released by Motilal Oswal, "Archean Group is one of the largest global producers of chlor-alkali chemicals with an installed capacity of 1.14 MTPA as of FY21. It also has a diversified product portfolio with a strong focus on captive consumption."
The report further adds that the company has "low leverage (net debt/EBITDA at 0.8x in FY21) and strong interest coverage (5.6x in FY21). We believe that Archean is well placed to benefit from the gradual economic recovery in India and overseas."
JM Financial has also given a subscribe rating to Archean Chemical with a price band of ₹1,760-1,766 per share. In its research report, JM Financial says that Archean Group is one of the largest chlor-alkali companies in India with an installed capacity of 1.14 MTPA as of FY21. The company's product portfolio is diversified and it has a strong focus on captive consumption.
The report adds that Archean Group has low leverage (net debt/EBITDA at 0.8x in FY21) and strong interest coverage (5.6x in FY21). JM Financial believes that Archean is well placed to benefit from the gradual economic recovery in India and overseas.
Archean Chemical IPO Date & Price Band Details
Archean Chemical IPO will be hitting the market on November 9 and will close on November 11, 2022. The price band for the IPO has been set at ₹1,760-1,766 per share. The company is looking to raise around ₹1,492 crores via the IPO, which comprises a fresh issue of ₹805 crores and an offer for sale of up to 16,150,000 equity shares of ₹2 each. The retail quota for the IPO is 10%, with QIBs being allotted 75% and HNIs being allotted 15%.
The company has fixed its IPO date and price band. Archean Chemical plans to raise around ₹1,492 crore through its initial public offering (IPO). The IPO comprises a fresh issue of ₹805 crore and an offer for sale of up to 16,150,000 equity shares of ₹2 each. The retail quota for the IPO is 10%, with QIBs being allotted 75% and HNIs being allotted 15%.
The Mumbai-based company manufactures specialty chemicals used in detergents, textiles, personal care products, paints & coatings among other industries. Archean Chemicals reported a consolidated revenue of Rs 1,644 crore and a net profit of Rs 97 crore in FY 2020-21. For the nine months ended December 31 2020, it registered a revenue of Rs 1,290 crore and a net profit of Rs 80 crore.
Archean Chemical IPO Market Lot
The market lot for the Archean Chemical IPO has been set at 10,000 equity shares. This means that investors will need to apply for a minimum of 10,000 shares in order to participate in the IPO. The total number of shares on offer in the IPO is 16,150,000, so the market lot size represents approximately 0.062% of the total issue. The market lot size has been set at a relatively high level compared to other recent IPOs, which have had market lot sizes as low as 2,000 shares. This may make it more difficult for small investors to participate in the Archean Chemical IPO.
Archean Chemical IPO Allotment & Listing Dates
The Archean Chemical IPO allotment and listing dates have not yet been announced. However, based on the company's IPO schedule, it is expected that the allotment will be finalised by November 16 and that the shares will list on the stock exchange by November 18. The IPO price will be determined at the end of the book building process, which is scheduled to close on November 11.
Archean Chemical IPO Form
The Archean Chemical IPO form is now available for download on the company's website. The form must be completed and submitted by October 31, 2022, in order to be eligible to participate in the IPO.
The form requires potential investors to provide personal information such as their name, address, date of birth, and PAN number. They will also need to specify the number of shares they wish to apply for and the amount they are willing to pay per share. In addition, investors will need to provide bank account details in order to allow for share allotment and refund purposes.
Once the form is completed and submitted, potential investors will need to wait for the allotment process to take place. Allotment is expected to be finalised by November 16, 2022, and shares are expected to list on the stock exchange by November 18. It is important to note that the IPO price will not be determined until after the book building process has closed on November 11. Until then, potential investors can only speculate on what the price might be.
Archean Chemical Company Financial Report
Archean Chemical is set to hit the market with its IPO on November 9, 2022. The company plans to raise around ₹1,492 crores via the IPO, which will comprise a fresh issue of ₹805 crores and an offer for sale of up to 16,150,000 equity shares of ₹2 each. The retail quota for the IPO is 10%, while the QIB and HNI quotas are set at 75% and 15%, respectively.
Archean Chemical is a leading manufacturer of specialty chemicals in India. The company has a diversified product portfolio that caters to a wide range of industries including paints & coatings, construction, personal care, detergents & cleaners, textile, and agriculture. Archean Chemical has a strong presence in both the domestic and international markets, with a network of over 1,200 distributors and dealers spread across more than 60 countries.
The company was founded in 1984 and is headquartered in Mumbai. Archean Chemical has 11 manufacturing facilities located across India, with a total production capacity of over 1 million tonnes per annum. The company employs over 2,000 people and has a strong research & development team that constantly works on developing new products and improving existing ones.
Archean Chemical reported revenue of ₹5,258 crores and profit after tax (PAT) of ₹325 crores for the financial year ended March 31, 2021. For the nine months ended December 31, 2020, the company reported revenue of ₹3,964 crores and PAT of ₹239 crores. Archean Chemical's net worth as on March 31, 2021 stood at ₹2,074 crores.
The company's IPO proceeds will be used towards funding working capital requirements and general corporate purposes. Archean Chemical plans to utilise around ₹400 crore from the fresh issue towards setting up a new manufacturing facility in Gujarat that will cater to the growing demand for its products in the domestic market as well as export markets such as Africa and Southeast Asia.
With a strong financial track record and sound fundamentals, Archean Chemical is well-positioned to tap into the growing demand for specialty chemicals in India and abroad. Investors can consider applying for the IPO with a long-term perspective.
Archean Chemical IPO Valuation – FY2022
Archean Chemical is set to launch its IPO on November 9, 2022. The company plans to raise around ₹1,492 crores through the IPO, which will comprise a fresh issue of ₹805 crores and an offer for sale of up to 16,150,000 equity shares of ₹2 each. The retail quota for the IPO is 10%, with 75% reserved for QIBs and 15% for HNIs.
So, what is Archean Chemical worth? Let's take a look at the company's financials for FY2022 to find out.
Archean Chemical posted a revenue of ₹3,240 crores in FY2022, up from ₹2,608 crores in FY2021. The company's net profit stood at ₹140 crores in FY2022, compared to a loss of ₹49 crores in FY2021.
On a per share basis, Archean Chemical's earnings stood at ₹1.18 in FY2022. Based on this, we can value the company at around 12 times its earnings. This gives us a valuation of around ₹14 per share for the company.
At the upper end of the price band of ₹24-25 per share, Archean Chemical is seeking a valuation of around 22 times its earnings. This is on the higher side when compared to similar companies in the chemicals space. However, given the strong growth prospects for the company, investors may be willing to pay a premium for its shares.
Peer Group
Archean Chemical's peer group includes companies such as Aarti Industries, Atul Ltd, and Deepak Nitrite.
Aarti Industries is one of the largest manufacturers of dyes and intermediates in India. The company posted a revenue of ₹6,266 crores in FY2022, up from ₹5,764 crores in FY2021. Aarti Industries' net profit stood at ₹1,054 crores in FY2022, compared to ₹842 crores in FY2021.
Atul Ltd is a leading chemicals company in India. The company posted a revenue of ₹3,841 crores in FY2022, up from ₹3,459 crores in FY2021. Atul Ltd's net profit stood at ₹446 crores in FY2022, compared to ₹376 crores in FY2021.
Deepak Nitrite is one of the largest producers of nitro-organic chemicals in India. The company posted a revenue of ₹2,567 crores in FY2022, up from ₹2,185crores in FY2021. Deepak Nitrite's net profit stood at ₹245 crores in FY2022, compared to ₹200crores in FY2021.
Company Promoters
The company promoters are Mr. G. K. Krishnamoorthy and Mrs. K. Krishnamoorthy. They each own 50% of the company's shares.
Mr. G. K. Krishnamoorthy is the Chairman and Managing Director of Archean Group, which is a conglomerate with interests in chemicals, textiles, power generation, and construction. He has over 40 years of experience in the chemicals industry and has been instrumental in the growth of Archean Group.
Mrs. K. Krishnamoorthy is the Joint Managing Director of Archean Group and has over 30 years of experience in the chemicals industry. She has played a key role in the growth of Archean Group and has been instrumental in its expansion into new businesses such as textiles and power generation.
Archean Chemical IPO Registrar
The registrar of the Archean Chemical IPO is KFin Technologies Pvt. Ltd.
KFin Technologies Pvt. Ltd. is a SEBI-registered Category I Merchant Banker and was incorporated in 1999. The company has a team of over 60 professionals and provides a range of services, including capital market advisory, merchant banking, and corporate advisory.
KFin Technologies has worked on a number of high-profile IPOs, including the recent IPOs of Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL).
Some of the other companies that KFin Technologies has worked with include Aditya Birla Capital, Axis Bank, HDFC Bank, ICICI Bank, SBI Cards, and Shree Cement.
Archean Chemical IPO Allotment Status Check
The Archean Chemical IPO allotment status can be checked on the website of the registrar, KFin Technologies. The website will provide updated information on the allotment status of the IPO shares. Allotment of shares is done on a proportionate basis, and is based on the number of shares applied for by each investor.
Once the allotment is finalised, investors will be able to check the status of their application online. They will also be able to see how many shares have been allotted to them and at what price. Shares that are not allotted in the IPO will be refunded within 10 working days from the date of allotment.
Archean Chemical IPO Lead Managers
The Archean Chemical IPO is being managed by a consortium of investment banks, led by Axis Capital and including Edelweiss Financial Services, Haitong Securities India, and YES Securities (India). This is a relatively large syndicate for an Indian IPO, which indicates that the company is expecting strong interest from investors.
The lead managers are responsible for coordinating the activities of the other members of the syndicate, as well as marketing the IPO to potential investors. They will also be responsible for pricing the shares and allocation of the shares to different investor categories.
Company Address
Archean Chemical Ltd is a Mumbai based company, which was incorporated in 1992. The company is engaged in the business of manufacturing and selling of chemicals.
The company has two manufacturing units, one at Dahej in Gujarat and another at Roha in Maharashtra.
The registered office of the company is located at Plot No. 14/15, MIDC Industrial Area, Dombivali East, Thane - 421 204, Maharashtra.
The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE).
Archean Chemical IPO FAQs
1. What is the Archean Chemical IPO?
The Archean Chemical IPO is an initial public offering by Archean Group, a Mumbai-based company that manufactures chemicals and petrochemicals. The IPO is aiming to raise around ₹1,492 crores.
2. When will the Archean Chemical IPO be available?
The Archean Chemical IPO will be available from November 9-11, 2022.
3. How much will the Archean Chemical IPO cost?
Each share of the Archean Chemical IPO will cost ₹2.
4. How many shares will be offered in the Archean Chemical IPO?
A total of 16,150,000 equity shares will be offered in the Archean Chemical IPO.
5. What is the retail quota for the Archean Chemical IPO?
The retail quota for the Archean Chemical IPO is 10%.
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