The initial public offer (IPO) of speciality marine chemical manufacturer Archean Chemical was subscribed 141 per cent on the second day of the issue today. The firm received bids for 2.81 crore shares against an IPO size of 1.99 crore shares at the end of day two of the IPO. The quota for retail investors was subscribed 2.93 times of the allotted portion, while the portion set aside for non-institutional investors was subscribed 2.07 times today.
The share sale will close on November 11. The IPO has a price band of Rs 386 to Rs 407 per share. At the upper end of the price band, the company is expected to raise Rs 1,462.3 crore from the IPO. The grey market premium (GMP) of the stock stood at Rs 80 today, implying that the grey market expects the firm to list around Rs 487 (Rs 407 + Rs 80 ).
The lot size of Archean Chemical IPO was 36 shares for which one would have to spend Rs 14,652. A retail individual investor could submit bids for up to 13 lots or 468 shares by spending Rs 1,90,476. The allotment of shares will be done on November 16 and they are likely to be listed on BSE and NSE on November 21. The firm raised Rs 658 crore from 42 anchor investors at the upper price band of Rs 407 per equity share.
The speciality marine chemical manufacturer allocated 1,61,67,991 equity shares to anchor investors including SBI Mutual Fund, Nippon India Fund, ICICI Prudential, HDFC Mutual Fund, Goldman Sachs Fund, Ashoka India Opportunities Fund, DSP Fund, IIFL Funds, Kotak Fund Motilal Fund, Tata Mutual Fund, Theleme India Fund, Baroda BNP Paribas Fund and Edelweiss Fund.
Nomura, Kuber India Fund, BNP Paribas Arbitrage, Aditya Birla Sun Life Insurance Company, ICICI Prudential Mutual Fund (MF), Tata MF, Edelweiss MF and IDFC MF are among the anchor investors, it added.
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. The facility and its surrounding salt fields and brine reservoirs span approximately 240 sq.km.
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