Chemcon Specialty Chemicals IPO: The IPO of Chemcon Specialty Chemicals Limited, a chemical manufacturing company, has also opened from today 21 September.
In the month of September, the IPO market is seeing a huge stir. In the same sequence, the IPO of the company making chemical company Chemcon Specialty Chemicals Limited has also opened from today. Chemcon’s IPO will be open for subscription from September 21 to 23. Currently, brokerage houses and experts are keeping a positive opinion about this IPO. The price band of the issue has been kept at Rs 338–340 per equity share. The company has targeted to raise a total of Rs 318 crore from this IPO. Know every information related to this issue…
Another entry in the IPO market; Angel Broking will open on 22 September
What should be the bet?
Brokerage house Motilal Oswal has advised subscribing to the IPO. The company is in a good position in making speciality chemicals. It has the potential to become a market leader. The company’s financial health is also looking better. The future of chemical companies is looking good with China in tension. The company also has a strong client base, so this situation can be benefited. However, there is also a concern with the product portfolio being limited.
Brokerage house Angel Broking has also suggested subscribing to it. According to the report, the company’s return ratios and margins are looking better than peer companies. The company is undervalued in comparison to them. In such a situation, it is showing potential.
IPO: Allotment, new entry from listing, next few days in IPO market
At least how much investment is necessary
Chemcon Specialty Chemicals has placed a lot of 44 shares for the issue. That is, based on the upper price of the price band, retail investors will have to spend Rs 14,960 for a lot. After this, bids can be made in multiples of 44 equity shares. Can bid for a maximum of 13 lots. After the issue, the promoters’ stake will come down from 100 per cent to 74.47 per cent.
Plan to raise 318 crores
The company plans to raise Rs 165 crore from fresh shares. Apart from this, 45,00,000 shares will be offered under the offer for sale. That is, the company plans to raise Rs 318 crore through an IPO. Intensive Fiscal Services Private Limited and Ambit Capital Private Limited have been appointed as lead managers for this issue. The shares of the company will be on the BSE and NSE. The listing date is 1 October.
Retail investors stake
Retail investors hold 35 per cent in the IPO. 50 per cent for qualified institutional investors and 15 per cent for non-institutional investors. Shares are not reserved for employees. Companies such as Aarti Industries, Vinati Organics, Fine Organics and Sudarshan Chemicals are its competitors.
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Chemcon Specialty Company Business
Chemical manufactures special chemicals such as hexamethyldisilazane (HMDS) and chloromethyl isopropyl carbonate (CMIC). They are mainly used in the pharma industry. The company also produces inorganic bromide used in the oilfield industry as a supplement fluid.
In FY 2020, the company’s operating revenue is Rs 262.05 crore, EBITDA is Rs 70.26 crore and net profit is Rs 48.85 crore. During FY 2018-20, the company’s sales increased by 29% CAGR, while EBITA increased by 25% and PAT by 36%. As of March 31, 2020, the company’s total debt was Rs 44.51 crore, while the debt to equity ratio was 0.31.
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