Archean Chemical Industries Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹407
Per ShareLot Size
36 Shares
Minimum Investment
₹14,652
Issue Size
₹1,462.31 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
10%
QIB Quota
75%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Archean Chemical Industries Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
70.3%
Issue Type
Book Building
ISIN
INE128X01021
About the Company
Archean Chemical Industries Ltd is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. The Company produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and it manufactures its products at facility near Hajipir in Gujarat. As of September 30, 2021, the company marketed its products to 13 global customers in 13 countries and to 29 domestic customers.
Industry Overview
According to Frost & Sullivan, the bromine global market size was US$3.13 billion in CY2021, and the market is expected to grow at a CAGR of 5.8% between CY2020 and CY2025. Frost & Sullivan reports that global demand for industrial salt is expected to grow at a CAGR of 2.8% between CY2020 and CY2025. Frost & Sullivan provides that global demand for sulphate of potash is expected to grow at a CAGR of 6.0% between CY2020 and CY2025.
Company History
Archean Chemical Industries Limited was originally formed as a partnership firm under the name of "Archean Chemical Industries" at Chennai, pursuant to a partnership deed dated November 20, 2003 which was registered under the Indian Partnership Act, 1932 with the Registrar of Firms, Chennai on November 25, 2003. Subsequently, the partnership firm was converted into private limited company under the Companies Act, 1956 with the name "Archean Chemical Industries Private Limited" and a certificate of incorporation dated July 14, 2009 was issued by the Registrar of Companies, Tamil Nadu at Chennai. Consequent upon conversion into a public limited company under the Companies Act, 2013 pursuant to a special resolution passed by the Shareholders on November 15, 2021 and fresh certificate of incorporation dated December 15, 2021 issued by the Registrar of Companies, Tamil Nadu at Chennai, the name of the Company was changed to "Archean Chemical Industries Limited".
Products & Services
- The Company develops and manufactures specialty marine chemicals in India and markets its products in India and Internationally.
Growth Strategy
- Expand into downstream bromine derivative performance products
- Expand its bromine and industrial salt capacities
- Continue to build its global customer base and enter new geographical markets
- Continue to focus on quality, environment, health and safety
Customer Base
Sojitz Corporation, which is also a shareholder in the Company, Shandong Tianyi Chemical Corporation, Unibrom Corporation, Wanhau Chemicals and Qatar Vinyl Company Limited.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 35,928,869^ equity shares of face value of Rs. 2 each ("Equity Shares") of Archean Chemical Industries Limited (the "Company" or the "Issuer") for cash at a price of Rs. 407 per equity share (including a share premium of Rs. 405 per equity share) ("Offer Price") aggregating to Rs. 1462.31 crores (the "Offer") comprising a fresh issue of 19,778,869^ equity shares aggregating to Rs. 805.00 crores by the company (the "Fresh Issue") and an offer for sale of 16,150,000^ equity shares aggregating to Rs. 657.31 crores by the selling shareholders (the "Offer for Sale") comprising 2,000,000^ equity shares aggregating to Rs. 81.40 crores by Chemikas Speciality llp (the "Promoter Selling Shareholder"), 3,835,562^ equity shares aggregating to Rs. 156.11 crores by India Resurgence Fund, Scheme i, 6,478,876^ equity shares aggregating to Rs. 263.69 crores by India Resurgence Fund, Scheme ii and 3,835,562^ equity shares aggregating to Rs. 156.11 crores by Piramal Natural Resources Private Limited (collectively, the "Investor Selling Shareholders", and together with the promoter selling shareholder, the "Selling Shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer constitutes 29.20% of the post-offer paid-up equity share capital of the company. ^Subject to finalisation of the basis of allotment. The face value of equity shares is Rs. 2 each. The offer price is 203.50 times the face value of the equity shares. Bids can be made for a minimum of 36 equity shares in multiples of 36 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Leading market position, expansion and growth in bromine and industrial salt;
- High entry barriers in the specialty marine chemicals industry;
- Established infrastructure and integrated production with cost efficiencies;
- Focus on environment and safety;
- Largest Indian exporter of bromine and industrial salt with global customer base;
- Its business is dependent and will continue to depend on its manufacturing facility, and its are subject to certain risks in its manufacturing processes. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with its operations could have an adverse effect on its business, financial condition and results of operations.
- The company is derive a significant part of its revenue from major customers. If one or more of such customers choose not to source their requirements from its or to terminate their contracts with its, the company's business, financial condition and results of operations may be adversely affected.
- The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances.
- Non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, may adversely affect its business, financial condition and results of operations.
- Its debt was restructured as at March 18, 2017 with overdue principal and interest aggregating to Rs. 17.74 crores with certain banks as at March 18, 2017.