Indian IPO market is gaining strong momentum after the lockdown. Investors are rushing to invest in upcoming IPOs like there is no tomorrow! The number of applications for Route Mobile and Happiest Mind proves it.
To ride on this IPO wave, yet another company, Chemcon Speciality Chemicals ltd is ready to launch it’s IPO in the market on 22nd September 2020. The size of this IPO is INR 350 crores, and the company is looking to fulfill many of its financial goals through the fund generated by this Public Offering.
If you are planning to invest in this IPO but are still confused about it, you have come to the right place! In this article, we will be talking about the details of Chemcon IPO, about the company itself, and about its financial performance and strength!
So let’s get started without wasting too much time!
Complete Details of Chemcon IPO
| Issue | Details |
|---|---|
| IPO Open | 21st September 2020 |
| IPO Close | 23rd September 2020 |
| IPO Size | INR 318 crores |
| IPO Type | Book Built Issue IPO |
| Face Value | ₹10 Per Equity Share |
| Price Band | ₹338 to ₹340 Per Share |
| Listing on | BSE & NSE |
| Issue Size (crore) | Face value of ₹10 & Total 9,352,940 Eq Shares (overall up to ₹318 crore) |
| Fresh Issue | 4,852,940 Equity Shares |
| No. of shares on offer (crore) | 4,500,000 Equity Shares |
| QIB (%) | 50% |
| Non-Institutional | 15% |
| Retail Portion | 35% |
| Minimum Lot Size | 44 Shares (1 Lot) ₹14,960 for 1 Lot |
| Maximum Lot Size | 44 Shares (13 Lot) ₹194,480 for 13 Lot |
| Minimum Order Quantity | 44 |
| Employee Discount | NA |
The shares will be allotted in the following manner to various type of investors:
- Retail Investors: 35 %
- Non-Institutional Investors: 15%
- QIBs: 50%
Chemcon IPO Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 74.47% |
About Chemcon Speciality Chemicals ltd
Chemcon is a Vadodara, Gujarat based pharma-chemical Manufacturing Company incorporated in the year 1988. At present, it is in the business of manufacturing HMDS and CMIC chemicals. These chemicals are primarily used in many pharma companies.
In terms of production of HMDS, it is the only company in India and the 8th largest in the world as per the data of 2018. Moreover, it is the second-largest company in the world in terms of production of CMIC and the only company in India to produce CMIC. It is the only company in India producing Zinc Bromide. It is the largest company in India producing Calcium Bromide.
Their primary plant of the company is located in the Manjusar GIDC in Vadodara, Gujarat.
Apart from India, the company has a global market for its products in countries like the USA. Serbia, China, Russia, Japan, Azerbaijan, Malaysia, and the UAE. These products of these companies are in high demand as they manufacture a niche product. The export plays a major part in the net revenue of the company, where the exports stood 32.33% of total exports in FY 2019. The revenue from these operations is growing at the rate of almost 25% CAGR from 2017.
The list of local clients of Chemcon is also very large. It comprises major Pharma companies in India like Macleods Pharma, Lauras Lab ltd, Hetero ltd, Aurbindo Pharma ltd, Lantech Pharma ltd, and other major pharma companies.
Apart from Pharma companies, Chemcon also has many clients from its oilfield segments. These firms are Universal Drilling fluids, Water System Speciality, and Shree Radha Overseas.
Financials of the Chemcon Speciality Chemical
Financial performance over the years (in INR crore)
| Financial Years | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|
| Revenue | 90.0 | 158.4 | 305.3 | 266.0 |
| Expenses | 85.6 | 117.8 | 244.1 | 201.1 |
| Net income | 3.0 | 26.6 | 43.4 | 49.3 |
| Net margin in % | 3.3 | 16.8 | 14.2 | 18.5 |
Details of Chemcon IPO
The objective of the Public Issues
The fund raised through the IPO will be utilized in the following manner
- To meet certain business capital expenses necessary for the smooth operations.
- For the expansion of the current manufacturing and supply capacity of the company.
- To meet other general corporate expenses of the company.
Promoters of Chemcon IPO
- Kamalkumar Rajendra Aggarwal
- Navdeep Naresh Goyal
- Shubharangana Goyal
Chemcon IPO Important Dates
Take a look at few important dates for the Chemcon IPO
| Details | Dates |
|---|---|
| Offer opens on | 21st September 2020 |
| Offer closes on | 23rd September 2020 |
| Finalisation of allotment basis | 28th September 2020 |
| Refund initiation on | 29th September 2020 |
| Shares to be credit in demat account on | 30th September 2020 |
| Listing of shares on the market | 1st October 2020 |
Chemcon IPO Lead Managers
- Ambit Private Limited
- Intensive Fiscal Services Private Limited
Chemcon Speciality Chemical Contact Information
| Contact Details | Registrar |
|---|---|
| Chemcon Speciality Chemicals Limited Block Number 355, Manjusar Kunpad Road Manjusar Village, Taluka Savli Vadodara 391775 | Link Intime India Private Ltd C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083 |
| Phone: 91 9879564107 | Phone: +91 224918 6270 |
| Email: [email protected] | Email: [email protected] |
| Website: www.cscpl.com | Website: www.linkintime.co.in |
Subscription Details
| Category | Offered Shares | DAY 1 21-sep-20 | DAY 2 22-sep-20 | DAY 3 23-sep-20 |
|---|---|---|---|---|
| QIB | 1,868,344 | 0.00x | 1.37x | 113.54x |
| NII | 1,407,249 | 1.24x | 3.50x | 449.14x |
| Retail | 3,283,580 | 9.83x | 22.94x | 40.21x |
| Total | 6,559,173 | 5.19x | 12.62x | 148.88x |
Expert Analyst Review
| Expert Name | Suggestion |
|---|---|
| Angel Broking | Subscribe |
| Axis Capital | None |
| Dilip Davda | Subscribe |
| Geojit Securities Ltd | Subscribe |
| Motilal Oswal | Subscribe |
Chemcon Listing Day Performance
| Details | NSE | BSE |
|---|---|---|
| Listing Date | 01-Oct-20 | 01-Oct-20 |
| IPO Price | ₹ 340.00 | ₹ 340.00 |
| Open | ₹ 731.00 | ₹ 730.95 |
| High | ₹ 731.25 | ₹ 743.80 |
| low | ₹ 584.80 | ₹ 584.80 |
| Close | ₹ 584.80 | ₹ 584.80 |
| Volume | 157,79,162 | 19,44,906 |
| Listing Day P/L | +72% | +72% |
Chemcon Speciality Chemicals IPO Rating
| Benchmarks | Ratings |
|---|---|
| Business Model | 4.5/5 |
| Industry Analysis | 4.5/5 |
| Competitive Advantage | 4.5/5 |
| Management | 4.5/5 |
| Corporate Governance | 4/5 |
| Company Reports | 4.5/5 |
| Evaluate Balance Sheets | 4.5/5 |
| Financial Performance | 4.5/5 |
| Quality Of Earnings | 4.8/5 |
| Top Broker Reviews | 4.5/5 |
| Overall | 4.5/5 |
Strengths of Chemcon Speciality Chemical
- A Leader in the Market
As mentioned earlier, it is the only company in India that manufactures Zinc Bromide and the largest company that produces Calcium Bromide in India.
In the current scenario, where all pharma companies are revving up their production, the demand for HMDs & CMIC is also rising. This will drive the company’s growth in the future.
- Global and Local Clientele Base
Being the second-largest company in the world to produce CMIC and the eighth largest company to produce HMDS, the demand for its products is very high.
Apart from local buyers, it has a large list of diversified global buyers that reduces the risk of dependency on only one sector or company.
- Robust Financial Performance
With an excellent team of promoters at the helm, the company’s financial performance has been improving consistently.
As is evident from the table, the company’s net income is rising every year, and it’s showing stellar performance.
Keeping the global demand in focus, this performance is set to improve in the near future, making this company a perfect choice for investors.
- Leading Oilfield Chemical Manufacturers
Apart from Pharma-chemicals, the company also produces oilfield chemicals for multiple companies. The company is a leader in this sector too and thus has a very promising future.
- Specialized Manufacturing Units
As mentioned earlier, the primary manufacturing unit of the company is located in Manjusar village in Vadodara district. It has specialized manufacturing units for each of its products. This has helped the company improve its manufacturing capacity to meet the increasing demand.
Grey Market Updates
- Grey Market Premium price: ₹[●]
- Kostak rate: ₹ 350
- Sauda: ₹ 5050
FAQ Chemcon IPO
What is CHEMCON IPO?
This IPO offer by Chemcon Speciality Chemicals Limited. company planning to expand capital by listing on BSE.
How do I apply for the Chemcon IPO?
Anyone having demat account are eligible for application. There are two method available for application.
ASBA Payment Method: The net-banking facility available for online IPO application.
UPI Payment Method: By using UPI payment method for application process.
What is the Chemcon IPO issue date?
Chemcon IPO issue period is from 21-sep-2020 to 23-sep-2020.
What is the Chemcon IPO allotment date?
Allotment date is 28 September 2020 and share will transfer to your demat account on 30 September 2020.
What if Chemcon IPO Shares not allotted to me?
Suppose Chemcon shares not allotted to you than refund will be credited to your linked bank account.
How to Apply Chemcon IPO through Zerodha?
Zerodha customers can apply for CHEMCON through UPI’s payment gateway by Zerodha Console. Pls follow Below steps
login to console.zerodha.com
Portfolio<<IPOs
Get the list of current listed IPOs.
You can apply for an IPO online.
What is the Chemcon IPO Listing date?
Listing date for this IPO is 01 October 2020.
Is there any other Chemcon IPO Listing later this year?
There is no such information available regarding the further listing of Chemcon IPO.
Will I get a discount if I am Chemcon Employee?
No details about employee discount.
What is the Lot Size of Chemcon IPO?
Minimum 44 shares (1 lot) and maximum 572 shares of lot size is available. One share price is ₹340 so 1 lot of will be ₹14960.
What is the face value of Chemcon IPO?
Face value is ₹10 Per Equity Share.
What Chemcon IPO symbols in NSE & BSE?
BSE: 543233, NSE: CHEMCON
Conclusion
Chemcon Speciality Chemicals Pvt Ltd is a leader in its segment. With very limited competition and a diversified client base, it shows good potential for growth in the market.
As the pharma industry is recovering from the slumber post lockdown, it will prove beneficial for the firm. Moreover, the gray market price of its shares is also up by around 93%. This shows the IPO of Chemcon may offer good listing gains to the investors.
After reading the complete analysis, we hope you have understood about Chemcon and its IPO. Although the details provided in this article are correct as per our knowledge, we would advise investors to perform their own research before making any investment decisions.
Also Read
