Archean Chemical Industries to launch IPO on November 9

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Specialty marine chemical manufacturer Archean Chemical Industries has decided to launch its initial public offering for subscription on November 9. The closing date for the offer will be November 11.

The issue will be opened for anchor investors for a day on November 7.

The company will disclose details about its IPO price band on November 3.

The maiden public issue comprises a fresh issuance of shares worth Rs 805 crore and an offer for sale of 1.61 crore equity shares by promoters and investors.

Promoter Chemikas Speciality LLP will offload 20 lakh shares via offer for sale, while investors Piramal Natural Resources, and India Resurgence Fund, Scheme I will sell 38.35 lakh shares each, and India Resurgence Fund Scheme II will offload 64.78 lakh shares via OFS.

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The fresh issue proceeds will be utilised for the redemption of non-convertible debentures, and general corporate purposes.

Archean Chemical Industries is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.

Bromine is used as key initial-level material in pharmaceuticals, agrochemicals, water treatment, flame retardants, additives, oil & gas and energy storage batteries.

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Industrial salt is an important raw material used in the chemical industry for the production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium metal.

Sulphate of potash is used as a fertilizer and also has medical uses.

IIFL Securities, ICICI Securities, and JM Financial are acting as the book-running lead managers for the issue.

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This would be the sixth IPO opening for subscription in the current month, after DCX Systems, Fusion Micro Finance, Global Health, Bikaji Foods International, and Five Star Business Finance.