Specialty chemical maker Archean Chemical Industries has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI). Initial Public Offering (IPO),
Initial share sale involves a fresh issue of equity shares, totaling up to 1,000 crore and the offer for sale of 1.9 crore shares by promoters and investors, including a joint venture between India Resurgence Fund, Piramal Group and Bain Capital.
The company plans to utilize the proceeds from the fresh issue for redemption of Non-Convertible Debentures (NCDs) issued by it. “This will reduce its outstanding indebtedness, debt servicing cost, improve debt to equity ratio and enable us to utilize our internal accruals for further investments in the growth and expansion of our business,” it said in its draft IPO papers. “
Archean Chemical Industries is a leading manufacturer of specialty marine chemicals in India, and focuses on the production and export of Bromine, Industrial Salt and Sulphate of Potash to customers worldwide. It produces its products from its salt reserves in the Rann of Kutch, located off the coast of Gujarat, and manufactures the products at its facility near Hajipir in Gujarat.
Bromine produced by Archean is used as a major starting-level material, with applications in the pharma, agrochemicals, water treatment, flame retardants, additives, oil and gas and energy storage sectors. As of September 30, 2021, the company markets its products to 13 global customers and 29 domestic customers in 13 countries, in accordance with its DRHP.
Industrial salt is an important raw material used for the production of various other chemicals and compounds in the chemical industry and sulfate of potash is used as a fertilizer and also has medical uses.
IIFL Securities, ICICI Securities and JM Financial are the Book Running Lead Managers of the IPO.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,