The company is selling its shares in the range of Rs 387-407 apiece between November 9-11 to raise Rs 1,462 crore, with a lot size of 36 equity shares.
According to the data from BSE, the investors made bids for 7,76,57,616 equity shares or 3.9 times compared to 1,99,57,325 equity shares offered for subscription by 12.40 am on Friday, November 11.
The quota for retail bidders was subscribed 5.33 times, whereas the allocation for HNI investors fetched 5.48 times bids. The portion for institutional investors was booked 2.31 times so far.
Archean Chemical Industries is India’s largest exporter of bromine and industrial salt in the fiscal year 2020-21. The company is the leading speciality marine chemical manufacturer in India.
The majority of brokerage firms remain positive on the issue and have suggested subscribing to it. However, some have a word of caution due to expensive valuations.
An export-oriented business with a strong client portfolio gives the company a competitive advantage over its peers, said BP Equities.
“On the upper end of the price band, the issue is valued at a P/E of 22.3x based on FY22 consolidated earnings which we feel is fairly priced and hence we initiate a ‘subscribe’ rating on the IPO for the benefit of listing gains,” it added.
However,
Broking remains neutral on the company as it believes high competition from international players and an increase in cost or shortfall of any raw material may impact business.
, and are the book-running lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.
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