The company is selling its shares in the range of Rs 387-407 apiece between November 9-11, with a lot size of 36 equity shares.
According to the data from BSE, the investors made bids for 59,41,260 equity shares compared to the 19,760,878 equity shares offered for the subscription or just 0.3 times.
The quota for retail bidders was subscribed 0.98 times, whereas the allocation for HNI investors fetched merely 0.32x bids. The portion for QIB or qualified institutional buyers was just subscribed 0.04 times.
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 the brokerage firms, whose reports are out in the public domain, remain positive on the issue and have suggested subscribing to it. However, some have a word of caution, citing the expensive valuations.
The company is bringing the issue at a price band of Rs 386-407 per share at a P/E multiple of 27x on an FY22 basis. It has a leading market position, expansion and growth in bromine and industrial salt, with high entry barriers, said Hem Securities.
“It has established infrastructure and integrated production with cost efficiencies and focused on the environment. Being an Indian exporter of bromine and industrial salt with a global customer base, it has shown strong and consistent financial performance,” it added with a subscribe rating.
Archean Chemical Industries raised Rs 658 crore from anchor investors by allocating them 1,61,67,991 equity shares at Rs 407 apiece, according to a circular uploaded on BSE’s website. At the upper price band of Rs 407, ACIL is available at a P/E of 26x (FY22), which appears reasonably priced. Considering its consistent top-line & bottom-line growth with cost efficiencies, industry-leading position in a high entry barrier industry, and expansion plans in product lines and capacities, said
with a ‘Subscribe’ rating.
75 per cent of the allocation has been fixed for the qualified institutional buyers, whereas non-institutional buyers will get 15 per cent shares. The remaining 10 per cent of shares have been allocated to retail bidders.
, and are the book-running lead managers to the issue, whereas Link Intime India has been appointed as the registrar of the issue.
