Archean Chemical Industries IPO subscribed 1.43 times on day 2

• The specialty chemical company was subscribed 1.43 times on the second day of the IPO subscription process.
• Archean Chemical Industries plans to raise ₹805 crore through fresh issue of shares through the IPO along with an offer for sale of ₹657 crore by promoters and existing shareholders.
• The price band of the IPO is set at ₹386- 407 a share.
• The grey market premium of the company’s shares rose to ₹80 from ₹70 earlier.

The initial public offering of specialty chemical company Archean Chemical Industries has been subscribed 1.43 times on the second of the IPO subscription process.

The IPO received good demand from retail investors as this portion was subscribed by 3.03 times.

Archean plans to raise ₹805 crore through fresh issue of shares via the IPO along with an offer for sale of ₹657 crore by promoters and existing shareholders.

The IPO proceeds from fresh issue will be utilised towards redemption of non-convertible debentures, and general corporate purposes.

The company is a speciality marine chemical manufacturer in India, focused on producing and exporting bromine, industrial salt, and ‘sulphate of potash’ to customers around the world.

It is also the only manufacturer of ‘sulphate of potash’ from natural sea brine in India. Sulphate of potash, also known as potassium sulphate, is a high-end, specialty fertilizer for chlorine-sensitive crops and also has medical uses.

Majority of the company’s sales are derived from selling to Chinese companies. As of FY22, 36.3% of its revenue comes from China, 29.68% from India, 19.46% from rest of Asia, 6.23% from Japan, 5.62% from South Korea, 1.79% from Africa and 0.92% from Europe.

The grey market premium (GMP) of the company’s shares are at ₹70 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The IPO opened on November 9, and will close on November 11.

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