Archean Chemical Industries Listing Today: Specialty chemical manufacturing company Archean Chemical Industries Limited (Archean Chemical Industries) has got a vigorous listing in the stock market today on 21 November. The company had fixed the upper price band of Rs 407 under the IPO, while it was listed at Rs 449 on BSE. That is, investors have got 10 percent return on the listing. Investors got a profit of Rs 42 on every share. Please tell that this IPO was subscribed 32 times. What should investors do now after getting better profit on listing?
Ensure that listing gains are locked in
Pravesh Gaur, Senior Technical Analyst, Archean Chemical Industries says that it is a major player in Bromine, Industrial Salt and Sulphate Potash Industry. It has 18 global and 24 domestic customers in 13 countries. Based on annualized FY2022 numbers, the issue is valued at P/E of 22.82. The company also deserves this premium multiple due to its growth outlook. However, the figures for 3 years are insufficient to conclude high growth and stability of margins. Therefore, investors are advised to lock in the listing gains given the company's reasonable valuation and presence in the specialty chemical industry.
Strong response was received from investors
The IPO of Archean Chemical Industries received a tremendous response from the investors. It was subscribed 32 times overall. The reserve portion for retail investors has been subscribed 9.96 times. While the reserve share for non-institutional buyers is 14.90 times full. Whereas the reserve portion for qualified institutional buyers is subscribed 48.91 times. Archean Chemical Industries is a leading manufacturer of specialty marine chemicals in the country. It produces its products from its salt deposits in the Rann of Kutch, situated on the coast of Gujarat.
Archean Chemical had fixed the price band of Rs 386 to Rs 407 per share for the IPO. The issue size was Rs 1462 crore. This included an offer for sale (OFS) of 1,61,50,00 equity shares by existing promoters and shareholders against fresh issue of equity shares worth Rs 805 crore.
(Disclaimer: Advice on IPO has been given by experts. These are not the personal views of StockPro. There are risks in the market, so take expert opinion before investing.)
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