Chemcon Speciality Chemicals is going to launch its initial public offering on September 21, as per the red herring prospectus filed with Sebi on September 12.
Computer Age Management Services (CAMS), which is backed by NSE and private equity firm Warburg Pincus, will also open its maiden public issue on the same date.
Chemcon, the manufacturer of specialised chemicals - HMDS and CMIC - which are predominantly used in the pharmaceuticals industry, is likely to raise around Rs 350-400 crore through its IPO.
As per the red herring prospectus, the public issue consists of a fresh issue of Rs 165 crore and and an offer for sale of 45 lakh equity shares by promoters Kamalkumar Rajendra Aggarwal and Naresh Vijaykumar Goyal. Both promoters will divest 22.5 lakh equity shares each via IPO.
Rudra Shares and Mehta Equities also told Moneycontrol that the public issue size could be in the range of Rs 350-400 crore, while Rudra Shares expects the IPO price band at around Rs 295-300 per share.
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The company aims to utilise fresh issue proceeds for expansion of manufacturing facility, working capital requirements and general corporate purposes.
Chemcon Speciality Chemicals supplies its products to domestic customers and also exports products to countries including United States of America, People's Republic of China, Japan, United Arab Emirates, Azerbaijan, Serbia, Russia and Malaysia.
Its key customers for pharmaceutical chemicals include Hetero Labs, Laurus Labs, Aurobindo Pharma, Sanjay Chemicals (India), Lantech Pharmaceuticals, Ind-Swift Laboratories, Vivin Drugs & Pharmaceuticals and Macleods Pharmaceuticals. Key customers for oilwell completion chemicals include Shree Radha Overseas, Water Systems Specialty Chemical DMCC, Universal Drilling Fluids and CC Gran Limited Liability Company.
Chemcon compares itself with listed industry peers - Aarti Industries, Vinati Organics, Sudarshan Chemical Industries, Atul, Paushak, Fine Organic Industries and Neogen Chemicals.
Equity shares are proposed to be listed on BSE and NSE. Intensive Fiscal Services and Ambit Capital are the book running lead managers to the issue. Link Intime India is the registrar.