Chemcon Subscribed 5.20 times on Day 1 of Bidding

Mumbai: Leading manufacturer of speciality chemicals, Chemcon Speciality Chemicals Limited received bids of 3,40,29,600 shares against the offered 65,47,061 shares, as per the 5pm data available on the websites of BSE and NSE. The portion reserved for retail investors was subscribed 9.86 times. Non-Institutional Investor category was subscribed 1.24 times and Qualified Institutional Buyer category was subscribed 0.00 times.

The Company raised 95.39 crs from 13 investors which included well known institutions such as IDFC Mutual Fund, ICICI Prudential, IIFL, HSBC Global, Mirae Asset Mutual Fund, Tata Mutual Fund amongst others.  A total of 4 Mutual funds had applied through 7 schemes. The bidding for the IPO closes on Wednesday, September 23, 2020.  The Company is proposing to raise ₹318.00 crore via the fresh issue of ₹165 crore and OFS of 45,00,000 equity shares. The minimum bid lot is 40 shares thereafter in multiples.  The price band has been fixed at Rs. 338 – Rs. 340 per Equity Share.

The only manufacturer of HMDS in India and the third largest manufacturer of HMDS in terms of production in CY 2019 (Source: Frost & Sullivan Report), Chemcon has reported revenue from Operations of ₹ 262.05 crore with EBITDA of ₹ 70.26 crore and Profit after Tax is ₹ 48.85 crore in FY 2020. It has grown at a 29% CAGR in sales, 25% in EBITA and 36% in PAT between FY18 and FY20.

Intensive Fiscal Services Private Limited and Ambit Capital Private Limited are the BRLMs to the Issue.

image.png

Leave a Reply

Your email address will not be published. Required fields are marked *