Chemcon IPO - Chemcon Speciality Chemicals Limited, Initial Public Offer Details

 

Chemical maker Chemcon Specialty Chemicals Limited is also bringing its IPO. Chemcon's IPO will open for subscription on September 21, 2020, and will close on September 23, 2020. Its price band has been kept at Rs 338–340 per equity share. The date of bidding and allocation for Anchor Investors is September 18, 2020. The company has targeted to raise a total of Rs 318 crore from this IPO.

 

The company was formed in 1988, Chemcon Specialty Chemicals Ltd is a manufacturer of special types of chemical products, which are HMDS and CMIC. Its product portfolio includes oilfield chemicals (calcium bromide, sodium bromide, and zinc bromide), pharma, silanes and chemicals contract manufacturing. Chemcon manufactures special chemicals such as hexamethyldisilazane (HMDS) and chloromethyl isopropyl carbonate (CMIC). They are mainly used in the pharma industry. The company also produces inorganic bromide used in the oilfield industry as a supplemental fluid. The company not only does business in the domestic market but also exports its products to overseas markets such as USA, Russia, Malaysia, China, Japan, UAE, Serbia and Azerbaijan. Its manufacturing plant is set up at Manjusar near Vadodara, Gujarat.

 

According to information provided by the company, bids can be made in multiples of a minimum 44 equity shares and 44 equity shares thereafter. The floor price is 33.8 times the face value of equity shares. The cap price is 34 times the face value of equity shares. The company says it intends to use the proceeds from the new issue for capital expansion, expansion of its manufacturing centre, the fulfilment of working expenditure and for general corporate purposes.

 

IPO Basic Details

IPO Date	September 21, 2020 - September 23, 2020
Issue Type	Book Built Issue IPO
Issue Size	9,352,940 Equity Shares of 10 rupee (aggregating up to 318.00 Cr rupee)
Fresh Issue	4,852,940 Equity Shares of 10 rupee (aggregating up to 165.00 Cr rupee)
Offer for Sale	4,500,000 Equity Shares of 10 rupee (aggregating up to 153.00 Cr rupee)
Face Value	10 rupee per equity share
IPO Price	338 to 340 rupee per equity share
Market Lot size	44 Shares
Minimum Order Quantity	44 Shares
Listing At	BSE, NSE

Intensive Fiscal Services Private Limited and Ambit Capital Private Limited has been appointed as lead managers for this issue. The shares of the company will be on the BSE and NSE. The listing date is October 1, 2020. Bidders can bid for a minimum of one and a maximum of 13 lots. After the issue, the promoters' stake will come down from 100 per cent to 74.47 per cent. Mr Navdeep Naresh Goyal,  Mr Kamalkumar Rajendra Agarwal, and Mrs Shubharangana Goyal is promoters of Chemcon Specialty Chemicals Ltd.

IPO Timetable

Bid/Offer Opens On	September 21, 2020
Bid/Offer Closes On	September 23, 2020
Finalization of Basis of Allotment	September 28, 2020
Initiation of Refunds	September 29, 2020
Credit of Shares to Demat Account	September 30, 2020
IPO Shares Listing Date	October 1, 2020