Archean Chemical Industries Limited IPO : Company Info.

Archean Chemical Industries Limited is a leader in marine chemical manufacturing and exports industrial salt, bromine and sulphate of potash. It was the leading exporter of bromine and industrial salt in FY 21. The company exports its products to 13 countries. It’s also indulged into domestic trade with 24 customers. It is the only manufacturer of Sulphate potash in India. Its production facility is located in Hajipir, Gujarat.

IPO DETAILS

Archean Chemical Industries Limited IPO is set to launch on 9th Nov., 2022. The subscription timeline extends till 11th Nov., 2022. The size for the IPO is 1462.31 Crore Rs.. Shares issued through Offer For Sale are worth 657.31 Crore Rs. Shares issued through Fresh Issue mode are worth Rs. 895 Crore. The lot size is 36 shares and the price range is 386 Rs. – 407 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 2 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IMPORTANT DATES

Archean Chemical Industries Limited IPO begins for subscription from 9th Nov., 2022. The IPO subscription would continue till 11th Nov, 2022. The allotment status for the shareholders who applied would come on 16th Nov., 2022. The refunds for the ones who did not get allotment would be initiated on 17th Nov., 2022. The DEMAT accounts of shareholders would be credited on 18th Nov., 2022. The listing of the company would be accompanied on 21st Nov., 2022.

Lead Managers

The lead managers are :

• JM Financial Limited
• IIFL Securities Limited
• ICICI Securities Limited

The minimum lot size for the company is decided at 36 shares. This holding accounts to  14652 Rs.. The maximum lot size is decided at 468 shares. This amounts to 190476 Rs.. Hence the company’s final holdings would be set as :

OBJECTIVES FOR THE IPO

• For General corporate purposes.
• For the redemption of NCD issued earlier.

COMPANY FINANCIALS

The company has a good asset base which is increasing at a stable pace. The assets are worth 1260 Crore Rs in 2020 which increased to 1428 Crore Rs in 2021 and to 1530 Crore Rs in 2022. It means an average 100 to 150 Crore Rs of increase in asset base. The revenue on the other hand is not in line with the asset base expansion. The revenue was 573 Crore Rs in 2020 which increased to only 617 Crore Rs in 2021. This is low in comparison to the 1142 Crore Rs revenue generated in 2022.

At the end the profits of the company seems to be affected by COVID crisis. The company generated 40 Crore Rs of profit in 2020 which was converted to a loss of 36 Crore Rs in 2021. However the company turned profitable again in 2022. This amounted to 189 Crore Rs. If we look closely then the company is not generating enough profits that it should from such a heavy amount of investments worth thousands of crore Rs. 

PROS

• Archean Chemical Industries Limited was the largest exporter of bromine and industrial salt in FY 21.
• The company deals with 13 foreign countries and 24 domestic customers.
• It is the only manufacturer of sulphate potash in India.

CONS

• The company works in a competitive segment.

Archean Chemical Industries Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Archean Chemical Industries Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.