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Starting September 2020, the IPO season has reopened with around six more companies expected to launch IPOs before the end of the year. The latest entrant is Chemcon Speciality Chemicals Ltd. with its IPO launching on September 21, 2020. Here is a look at all the details of the IPO.

How to Apply for Chemcon IPO?

Interested investors can apply for the Chemcon IPO via the ASBA facility available on the online net banking facility. Almost all banks in India have this facility.

Want a simpler way? You can apply for Chemcon IPO on Groww web easily via UPI. Go to IPO ( login to your account). There you would be able to see the list of all open IPOs. Select Chemcon IPO and click on ‘Apply’.

Read More: Steps to Invest in IPO on Groww 

Chemcon IPO Details

IPO DateSeptember 21, 2020 to September 23, 2020
Issue TypeBook Built Issue IPO
Issue Size9,352,940 Equity Shares of Rs.10 (totaling to Rs.318 crore)
Fresh Issue4,852,940 Equity Shares of Rs.10 (around Rs.165 crore)
Offer for Sale4,500,000 Equity Shares of Rs.10 (around Rs.153 crore)
Face ValueRs.10 per equity share
IPO PriceRs.338 to Rs.340 per equity share
Market Lot44 Shares
Min Order Quantity44 Shares
Listing AtBSE, NSE

Chemcon IPO Timetable

Bid/Offer Launch dateSep 21, 2020
Bid/Offer Last dateSep 23, 2020
Basis of Allotment finalization dateSep 28, 2020
Initiation of RefundsSep 29, 2020
Credit of Shares to Demat AcctSep 30, 2020
IPO Shares Listing DateOct 1, 2020

Chemcon IPO Category-wise Break-Up

CategoryNumber of sharesAmount (in crores)
Anchor Investor28,05,88395.4
NII14,02,94147.7
QIB18,70,58863.6
RII32,73,529111.3
Total93,52,941318

Objects of the Issue

Chemcon proposes to utilize the net proceeds from this issue towards funding the following objects:

  1. Capital expenditure towards the expansion of its manufacturing facility
  2. To meet working capital requirements; and
  3. General corporate purposes

Additionally, the company also expects to derive benefits of listing equity shares on stock exchanges like enhancement of its brand name and a public market for its equity shares.

About the Company – Chemcon Speciality Chemicals Ltd.

Chemcon Speciality Chemicals Ltd. was incorporated in 1988 and is a manufacturer of specialized chemicals like HMDS and CMIC with its manufacturing plant in Manjusar near Vadodara, Gujarat. This is primarily used in the pharmaceutical industry and inorganic bromides like Calcium Bromide, Sodium Bromide, and Zinc Bromide. These are used primarily in the oilfields industry as completion fluids. The company also manufactures pharmaceutical intermediaries, Silanes, and undertakes contract manufacturing from early phase development to commercial production.

It is an ISO 9001:2015 and ISO 14001:2015 certified company for the “Manufacture and supply of Pharmaceutical Intermediates, Silanes and Oilfield Chemicals”. Here are some important highlights of the company for the calendar year 2019:

  • The only manufacturer of HDMS in India
  • Third-largest manufacturer of HDMS around the world
  • The largest manufacturer of CMIC in India
  • The second-largest manufacturer of CMIC around the world
  • The only manufacturer of Zinc Bromide in India
  • The largest manufacturer of Calcium Bromide in India

Apart from serving the domestic market, Chemcon also exports to several countries around the globe. The percentage of revenue earned from major countries to which products are exported for Fiscal 2020 is as follows: 

CountryPercentage of revenue from operations
United Arab Emirates26.43%
Thailand2.80%
Serbia2.21%
China1.45%
Russia0.95%
Japan0.79%
The United States of America0.74%
Italy0.36%
Malaysia0.03%
South Korea0.10%

The pharmaceutical chemical division is the maximum revenue-generating division of the company with some key customers being Hetero Labs Limited, Laurus Labs Ltd, Aurobindo Pharma Ltd, Lantech Pharmaceuticals Ltd, and Macleods Pharma Ltd. The global market of chemicals used as pharmaceutical intermediates was valued at about USD 27 billion in 2019 and is expected to grow at a CAGR of 4% between 2020 and 2023.

Important information about Chemcon Speciality Chemicals Ltd.

Here is a quick look at some important information about Chemcon Speciality Chemicals Ltd.:

1. Overview of Chemcon’s Financials

31-Mar-2031-Mar-1931-Mar-18
Total Assets2,257.921,730.33970.65
Total Income2,660.173,053.261,583.91
Total Expenses2010.942,441.231,178.40
Profit After Tax488.53430.41263.81

All amounts in INR million

2. Promoters of Chemcon IPO

  1. Kamalkumar Rajendra Aggarwal
  2. Navdeep Naresh Goyal
  3. Shubharangana Goyal

Summing Up

Before investing in an IPO, it is important to read through the Red Herring Prospectus (RHP) available with the application form or on the company’s website. Spend some time trying to understand the company’s business, its financials, management, and prospects before making a decision about investing in it. Investing in shares is akin to becoming a business partner in the company. Try to assess if this is a company that you would want to be a partner in. Consider all aspects and invest wisely. 

Happy Investing!

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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