Shares of Archean Chemical Industries Ltd’s will be listed at the exchanges on Monday, after successful initial public offering. The company has fixed the IPO price as ₹407, fixing at the upper end of the price band of ₹386-407 per share.
Specialty chemical manufacturer issue was subscribed 32.54 times.
The issue 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, including the India Resurgence Fund, a joint venture between the Piramal Group and Bain Capital. Promoter Chemikas Speciality sold 20 lakh shares via OFS, while investors Piramal Natural Resources and India Resurgence Fund offloaded 38.35 lakh shares each. India Resurgence Fund II divested 64.78 lakh shares.
The company plans to use the net proceeds of the fresh issue for the redemption of non-convertible debentures (NCDs) issued by it.
The retail portion of the ₹1,462 crore IPO was subscribed 10.25 times.
The speciality marine chemical manufacturer had raised ₹658 crore from anchor investors ahead of the issue. The company had decided to allocate about 1.62 crore at the upper price band of ₹407 a share to anchor investors including Abu Dhabi Investment Authority, Government Pension Fund Global, Societe Generale and BNP Paribas, SBI NSE Mutual Fund, Nippon India Fund, ICICI Prudential, HDFC Mutual Fund, Goldman Sachs Fund, Ashoka India Opportunities Fund, DSP Fund, IIFL Funds, Kotak Fund Motilal Fund, Tata Mutual Fund, Theleme India Fund, Baroda BNP Paribas Fund and Edelweiss Fund.
Archean Chemical Industries is a leading manufacturer of speciality marine chemicals in India, and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It manufactures 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.