In the fiscal year 2020–2021, Archean Chemical Industries has exported more bromine and industrial salt than any other company in India. The organization is India’s top manufacturer of specialized marine chemicals.
Archean Chemical Industries sell the products to 24 local consumers as well as 18 international clients in 13 different countries. Having exported 2.7 million MT of industrial salt in Fiscal 2021, the firm was India’s top industrial salt exporter.
In India, the company is the sole producer of sulphate potash. The majority of the company’s marine chemicals business is done on a business-to-business basis both domestically and abroad.
At Hajipir, Gujarat, which is situated on the northern edge of the Rann of Kutch brine deposits, the company operates an integrated production plant for the sulphate of potash, bromine, and industrial salt, and operations.
- In terms of bromine and industrial salt, Archean has the leading market position, expansion, and growth.
- High entry hurdles in the market of specialty marine chemicals.
- Developed infrastructure, coordinated production, and cost-effectiveness.
- Completely aimed at environment and safety.
- The largest exporter of industrial salt and bromine from India, with a clientele around the world.
- Robust and reliable financial performance.
- Promoters, financial investors, stakeholders, and a management team with experience.
Review: Archean Chemical IPO
As a maker and exporter of speciality chemicals, ACIL has carved out a niche for itself. Its ongoing downstream expansions, which have improved margins, have begun to show results.
The issue appears to be competitively priced based on its FY23 profits. Investors may think about purchasing this blue chip company shares if they are considering speciality chemical shares for medium- to long-term gains.
Expert Opinion on the IPO Listing of Archean Chemical
Abhay Doshi, the founder of UnlistedArena.com, commented on the listing of the Archean Chemical Initial Public Offering: “Amid a spree of IPO listings, the primary markets have regained momentum on some good listings recently. Archean Chemicals got a decent response from investors as the issue seemed to be reasonably priced.
Also, Archean is an export company oriented and also the industry has some entry barriers. The sentiments seem very positive, and we can see a fancy on the listing. The issue is expected to list over a 20–25 per cent premium to its issue price.”
Proficient Equities’ founder and director, Manoj Dalmia, stated: “The company is the leading specialist marine chemical manufacturer in India and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.
The GMP for the stock has remained above ₹110 for the last few days, and hence we expect the listing premium to the tune of 30 per cent, irrespective of the market mood.”
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Archean Chemical: Should Investors Hold Or Sell?
According to Swastika Investmart’s Senior Technical Analyst, Pravesh Gour, “Investors responded positively to the issue, particularly the institutional side, which was subscribed 48.91 times while the retail side was subscribed 9.96 times, and the current GMP is 90, or 22% above the issue price.
The issue was priced at a P/E of 22.82 based on annualized FY22 numbers. However, the company deserves this premium multiple due to its phenomenal growth prospects.
Nevertheless, the high debt-to-equity ratio (3.25 based on March, FY 22 consolidated numbers), high product, key customer concentration, and restructuring of loans during FY 17–18 make us opposed to the issue. Furthermore, the three years of data are insufficient to conclude the sustainability of high growth and margins.”
Archean Chemical IPO Listing Date
- Listing Date: Monday, November 21, 2022
- NSE Symbol: ACI
- ISIN: INE128X01021
- IPO Price: ₹407 per share
- Face Value: ₹2 per share
- BSE Script Code: 543657
- Listing In: B Group of Securities
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