Archean Chemical Industries Limited (ACIL), proposes to open its initial public offering (IPO) of equity shares of face value of Rs. 2 each (equity shares) on November 9, 2022.

The initial public offering comprises fresh issue of equity shares aggregating up to Rs. 805 crore (fresh issue) and an offer for sale of up to 16,150,000 equity shares. The anchor investor bidding date shall be November 7, 2022. The offer will close on Friday, November 11, 2022.

The price band of the offer has been fixed at Rs. 386 – 407 per Equity Share. Bids can be made for a minimum of 36 equity shares and in multiples of 36 equity shares thereafter.

AICL proposes to utilize the net proceeds of the fresh Issue towards funding: Redemption or earlier redemption, in part or full, of non-convertible debentures (NCDs) issued by the company amounting to Rs. 644 crore; and balance amount towards general corporate purposes.

The offer for sale comprises of up to 2,000,000 equity shares by Chemikas Speciality LLP (Promoter Selling Shareholder) and up to 3,835,562 equity shares by India Resurgence Fund, Scheme I, up to 6,478,876 equity shares by India Resurgence Fund, Scheme II, up to 3,835,562 equity shares by Piramal Natural Resources Private Limited (collectively, the investor Selling Shareholders and together with the Promoter Selling Shareholder, the Selling Shareholders).

IIFL Securities Limited, ICICI Securities Limited, and JM Financial Limited are the Book Running Lead Managers to the Offer.

Archean Chemical Industries Limited is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. The company produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and it manufactures its products at its facility near Hajipir in Gujarat.

As of June 30, 2022, the Company marketed its products to 18 global customers in 13 countries and to 24 domestic customers. Its bromine is used as key initial level materials, which have applications in the pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage batteries. Industrial salt is an important raw material used in chemical industry for production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium metal.