Archean Chemical shares list at premium over IPO issue price

The public issue was subscribed 32.23 times by the close of the subscription period on Friday, November 11, 2022. Archean Chemical IPO consisted of a fresh issue of equity shares aggregating up to ₹805 crore and an Offer For Sale (OFS) of up to 1.61 crore shares by the promoter and investors. 

The quota meant for Qualified Institutional Buyers (QIBs) received 48.91 times subscription, while the non-institutional investors category was subscribed 14.90 times and Retail Individual Investors (RIIs) was subscribed 9.96 times.

The price range for the offer was ₹386-407 per share. The firm plans to use the proceeds of the fresh issue for the redemption of Non-Convertible Debentures (NCDs) issued by it. The company raised ₹658 crore from anchor investors ahead of its issue. 

The firm allocated 1,61,67,991 equity shares to anchor investors at ₹407 apiece. Goldman Sachs, Abu Dhabi Investment Authority, Segantii India Mauritius, BNP Paribas, Societe Generale, Government Pension Fund Global, ICICI Prudential, DSP Small Cap Fund, Tata Mutual Fund (MF), SBI MF, Nippon India MF and Aditya Birla Sunlife Insurance have invested in the company via anchor book.

Archean Chemical Industries Ltd is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It produces 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.

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.