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Chemcon Speciality Chemicals to raise Rs 318 crore via IPO; price band set at Rs 338-340

The public offer will close on September 23 and the bidding for anchor investors' book will be on September 18.

September 21, 2020 / 02:35 PM IST

Chemcon Speciality Chemicals has fixed the price band for its initial public offering at Rs 338-340 per share.

The company plans to raise Rs 317 crore at the lower end of price band and Rs 318 crore at the upper price band through its maiden public issue which will open for subscription on September 21.

The IPO comprises of a fresh issue of Rs 165 crore and an offer for sale of Rs 45 lakh equity shares by promoters Kamalkumar Rajendra Aggarwal and Naresh Vijaykumar Goyal.

The public offer will close on September 23 and the bidding for anchor investors' book will be on September 18.

CAMS IPO: Price band set at Rs 1,229-1,230/share


Bids can be made for a minimum 44 equity shares and in multiples of 44 shares thereafter.

Chemcon, the manufacturer of specialised chemicals - HMDS and CMIC which are predominantly used in the pharmaceuticals industry, is going to utilise proceeds from the fresh issue for expansion of manufacturing facility, working capital requirements and general corporate purposes.

NSE and private equity firm Warburg Pincus-backed Computer Age Management Services' (CAMS) IPO will also open and close on the same dates.

Route Mobile IPO: Check allotment status here

Chemcon Speciality Chemicals supplies its products to domestic customers and also exports products to countries including the US, 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 such as Aarti Industries, Vinati Organics, Sudarshan Chemical Industries, Atul, Paushak, Fine Organic Industries and Neogen Chemicals.

In FY18-FY20, company's revenue from operations grew at a CAGR of 28.93 percent, EBITDA 24.82 percent and profit after tax at a CAGR of 36.08 percent.

Pharmaceutical chemicals segment contributed 63.75 percent to its revenue in FY20, while oilwell completion chemicals contributed 33.47 percent of total revenue from operations.

A 50 percent of offer is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the balance 35 percent for retail investors.

Equity shares are proposed to be listed on BSE and NSE. The book running lead managers to the issue are Intensive Fiscal Services and Ambit Capital, while Link Intime India is the registrar.

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Moneycontrol News
first published: Sep 16, 2020 12:27 pm
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