The initial public offer (IPO) of speciality marine chemical manufacturer Archean Chemical was subscribed 32.23 times on the final day of the issue (November 11). The firm received bids for 64.31 crore shares against an IPO size of 1.99 crore shares.
The qualified institutional buyers’ category was booked 48.91 times, the portion set aside for non-institutional investors was subscribed 14.90 times, and the quota for retail investors was subscribed 9.95 times of the allotted portion.
In addition, the finalisation of the basis of share allotment for Archean Chemical’s IPO was done this week. The listing of Archean Chemical may happen on November 21.
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With a price band of Rs 386 to Rs 407 per share, the company expected to raise Rs 1,462.3 crore from the initial share sale.
“Investors responded positively to the issue, particularly the institutional side. The issue was priced at a P/E of 22.82 based on annualized FY22 numbers. We advise investors to lock in listing gains due to the company’s reasonable valuations and presence in the specialty chemical industry,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
The firm had raised Rs 658 crore from 42 anchor investors at the upper price band of Rs 407 per equity share ahead of its IPO.
Latest grey market premium
Market participants said Archean Chemical IPO grey market premium (GMP) is around Rs 116 today. It implies that the grey market is expecting the lender to list around Rs 523 (Rs 407 + Rs 116), which is more than 28 per cent higher than the IPO’s upper band price of Rs 474 per equity share.
Check share allotment status
* Open https://www.bseindia.com/investors/appli_check.aspx on your browser;
* Select ‘Equity’ option and issue name – ‘Archean Chemical’ from the dropdown;
* Enter your application number and PAN (Permanent Account Number) details;
* Check ‘CAPTCHA’ and click submit to view the status.
Brokerage view
* Geojit Financial Services assigned a ‘Subscribe’ rating on a short to medium-term basis.
* Choice Broking gave a ‘Subscribe with Caution’ rating to the issue.
* Ashika Research assigned a ‘subscribe’ call to the issue.
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Archean Chemical Industries Ltd (ACIL) has an integrated production facility for bromine, industrial salt, and sulphate of potash operations, located at Hajipir, Gujarat, which is located on the northern edge of the Rann of Kutch brine fields.
