Archean Chemical Industries IPO subscribed 32.54 times on last day

• The specialty chemical company was subscribed 32.54 times on the last day of the IPO subscription process.
• Archean Chemical Industries’ IPO is a combination of a fresh issue of ₹805 crore and an offer for sale of ₹657 crore by promoters and existing shareholders.
• The price band of the IPO was ₹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 32.54 times on the last of the IPO subscription process Friday.

The retail portion of the ₹1,462 crore IPO was subscribed 10.25 times. On the other hand, the IPO of Five Star Business Finance was subscribed by only 0.70 times on the last day of the IPO Friday. Both the IPOs opened on the same day – November 9.

Archean’s IPO is a combination of ₹805 crore through a fresh issue of shares and an offer for sale of ₹657 crore by promoters and existing shareholders.

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

Archean 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 fertiliser 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 came from China, 29.68% from India, 19.46% from the 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 rose to ₹80 per share, from ₹70 earlier. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

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