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Archean Chemical Industries IPO - Specialty Chemical Manufacturer At A Discount: Reliance Securities

The company is coming out with an IPO comprising fresh issue of ~19.8 mn shares and OFS of ~16.2 mn shares.

<div class="paragraphs"><p>Scientist testing a chemical solutions in test tubes in R&amp;D lab. (Source: freepik)</p></div>
Scientist testing a chemical solutions in test tubes in R&D lab. (Source: freepik)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Reliance Securities' IPO Report

Archean Chemical Industries Ltd. is the leading speciality marine chemical manufacturer in India with focus on export of bromine, industrial salt, and sulphate of potash globally.

During FY21, the company was India’s largest exporter of bromine and industrial salt. It has one of the lowest cost of production in both bromine and industrial salt globally.

Its predominantly focused on business-to-business segment.

During FY20-22, its revenue and Ebitda clocked compound annual growth rate of 36% and 78% respectively, while Ebitda margin expanded from 24.3% in FY20 to 41.3% in FY22. Archean Chemical reported revenue of Rs 11.3 billion in FY22, up 53% YoY, while Ebitda grew by 78% YoY Rs 4.8 billion in FY22.

Archean Chemical is coming out with an initial public offer comprising fresh issue of ~19.8 million shares and offer for sale of ~16.2 million shares, aggregating a total of ~Rs 14.6 billion. The objective of the issue is redemption of non-convertible debentures.

Click on the attachment to read the full IPO report:

Reliance Securities Archean Chemical IPO.pdf

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