IPO: Archean Chemical Industries Ltd Set To Go Public, Files DRHP With SEBI

Archean Chemical Industries Ltd is planning to go public and has sought approval from the Securities and Exchange Board of India (SEBI) for the same.

The proposed initial public offering (IPO) consists of a fresh issue of Rs 1,000 crore.

The issue will also have an offer-for-sale (OFS) of up to 19.07 million shares by the company’s existing shareholders and promoters.

JM Financial, ICICI Securities Ltd, and IIFL Securities are the lead managers for Archean’s issue.

The company is planning to use the proceeds from the IPO to completely or partially redeem non-convertible debentures (NCD).

“We believe the redemption of the NCDs will reduce our outstanding indebtedness, debt servicing costs, improve our debt to equity ratio and enable utilisation of our internal accruals for further investment in our business growth and expansion,” Archean’s draft red herring prospectus (DRHP) read, as reported by Moneycontrol.

They added, “Additionally we believe that the increased leverage capacity of our company will improve our ability to raise further resources in the future to fund our potential business development opportunities and plans to grow and expand our business.”

Archean Chemical Industries Ltd is one of the leading specialty marine chemical manufacturers in India. The company produces and exports bromine, sulphate of potash, and industrial salt.

Their revenue from operations and net profit stood at Rs 740.6 crore and Rs 66.61 crore respectively in FY21.