The IPO for Chemcon Specialty Chemicals opens on Monday and the specialty chemicals manufacturer has set the price band at ₹338-340 per share for your initial stock sale. The issue closes on September 23. Before its IPO, Chemcon Specialty Chemicals raised ₹Rs 95 crore from 13 anchor investors including IDFC Mutual Fund, ICICI Prudential Mutual Fund, IIFL, HSBC Global, and Mirae Asset Mutual Fund.
Lot size and probable trading date
The lost size of the Chemcon Specialty Chemicals IPO is 44 shares, which means that investors must bid for a minimum of 44 shares and in multiples thereof. The minimum application money for retail investors in the upper price band is a lot) Rs. 14,960. Retail investors can bid for a maximum of 13 lots.
According to brokerages, the share allocation in the Chemcon Specialty Chemicals issue is likely to be funded on September 28 and the issue to be listed on October 1.
Link Intime India Pvt Ltd is the registrar for the initial public offering, while Intensive Fiscal Services and Ambit Capital are the main managers of the matter.
The initial public offering (IPO) of Chemcon Specialty Chemicals comprises a new issue of equity shares totaling up to ₹Rs 165 crore and an offer to sell of up to 45 lakh scrips of shares from the promoters. At the upper end of the price band, the IPO will reach ₹318 million rupees.
The company intends to use the net proceeds from the new issuance to cover capital expenditures for the expansion of its manufacturing facility, fund working capital requirements, and general corporate purposes.
The Vadodara-based company has long-standing relationships with its key customers, including Laurus Labs Ltd, Aurobindo Pharma Ltd, Ind-Swift Laboratories Ltd.
It exports products to global markets covering the United States, Germany, Italy, South Korea, Japan, United Arab Emirates, Serbia, Russia, Spain, Thailand, and Malaysia.
Chemcon Specialty Chemicals Ltd is a leading manufacturer of specialty chemicals such as HMDS (hexamethyldisilane) and CMIC (chloromethyl isopropyl carbonate) that are predominantly used in the pharmaceutical industry (pharmaceutical chemicals) and inorganic bromides, predominantly used as termination fluids in industry. of oil fields (petroleum, completion chemicals).
Its revenue and PAT grew at a CAGR of 29% and 36%, respectively, during fiscal year 2018-20. In fiscal year 20, Chemcon had reported sales of ₹262 million rupees with a net profit of ₹49 crore.
“In the upper price band of Rs340, CSCL is available at a P / E of 25.5x in FY2020, which is attractive compared to its peers. Considering healthy business performance, regular capacity expansions, strong customer base, an expanding margin profile and a better outlook for the sector, we have a ‘SUBSCRIBE’ rating on this IPO, “Geojit Financial Services said in a note.
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