Another IPO is going to hit on Dalal street on the 21st of September 2020. this time it is CHEMCON SPECIALITY CHEMICAL LTD. Chemcon aims to raise ₹223 crore through this IPO. CHEMCON is India’s largest manufacturer of specialized chemicals, such as Hexamethyldisilazane / Hexamethyldisilane (HMDS) and Chloromethyl Isopropyl Carbonate (CMIC), which are predominantly used in the pharmaceuticals industry.
CHEMCON-CHEMCON SPECIALITY CHEMICALS LTD
CHEMCON is the only manufacturer of HMDS in India and is the eighth largest manufacturer of HMDS worldwide in terms of production in 2018. It is the largest manufacturer of CMIC in India and the second-largest manufacturer of CMIC worldwide, in terms of production and capacity in the calendar year 2018. Further, it is the only manufacturer of Zinc Bromide and the largest manufacturer of Calcium Bromide in India, in terms of production in 2018. CHEMCON has a strong network in the Indian market as well as in the international market including USA, China, Japan, UAE, Serbia, Russia, Malaysia, and Azerbaijan.
Objective of the Issue
- Capital expenditure towards expansion of companies manufacturing facility.
- To meet working capital requirements.
- General corporate purpose.
Basic details about CHEMCON
| Full name | Chemcon Speciality Chemicals Ltd |
| Sector | Chemicals |
| Industy | Chemicals |
| Company Website | www.cscpl.com |
Dates to remember
| IPO Open | 21 September 2020 |
| IPO Close | 23 September 2020 |
| Basis of Allotment | 28 September 2020 |
| Refunds date | 29 September 2020 |
| Credit to Demat Account | 30 September 2020 |
| Listing Date | 01 October 2020 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹316.13-₹318 crores |
| Number of shares offered to the public | 9,352,941 shares |
| Face value | ₹10 per equity share |
| Price band | ₹338-₹340 per equity share |
| Retail portion | 35% |
| Lot size | 44 Nos |
| Minimum application | 1 lot – 44 shares |
| Maximum application | 13 lot – 572 shares |
| Minimum application amount | ₹14,960 |
| maximum application amount | ₹1,94,480 |
| Listing Exchange | BSE, NSE |
Offer Size by Investor Category
| Qualifies Institutional Buyers (QIB) | 50% |
| Non-Institutional Investors | 15% |
| Retail Investors | 35% |
Category-wise Break up
Anchor: 28,05,883 Shares = 95.40 Crores
QIB: 18,70,588 Shares = 63.60 Crores
NII: 14,02,941 Shares = 47.70 Crores
RII: 32,73,529 Shares = 111.30 Crores
More about CHEMCON
The company supplies its products to domestic customers and also exports its products to countries including United States of America, People’s Republic of China, Japan, United Arab Emirates, Azerbaijan, Serbia, Russia and Malaysia. In FY2019, 2018 and 2017, its revenue from exports (including Deemed Exports) contributed 32.23%, 48.06% and 65.09% respectively of its revenue from operations, growing at a CAGR of 29.44% between FY2017 and FY2019.
The key customers of its Pharmaceutical Chemicals include Hetero Labs Limited, Laurus Labs Limited, Aurobindo Pharma Limited, Sanjay Chemicals (India) Private Limited, Lantech Pharmaceuticals Limited, Ind-Swift Laboratories Limited, Vivin Drugs & Pharmaceuticals Limited, Macleods Pharmaceuticals Limited and the key customers of Oilwell Completion Chemicals include Shree Radha Overseas, Water Systems Specialty Chemical DMCC, Universal Drilling Fluids and CC Gran Limited Liability Company.
Strengths
- Leading chemicals manufacturer in India.
- Largest manufacturer of pharmaceutical chemicals across the globe.
- Strong and consistent financial performance.
- Dedicated manufacturing plants for each product.
- Diversified clientele base in the domestic and global markets.
Financials Summary
| Particulars | For the year/period ended (₹ in million) | |||
|---|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Total Assets | 2,257.92 | 1,730.33 | 970.66 | 626.80 |
| Total Revenue | 2,660.17 | 3,053.26 | 1,583.91 | 899.96 |
| Profit After Tax | 488.53 | 430.41 | 263.81 | 28.24 |
Valuation of Chemcon Speciality Chemicals (as of FY2020)
| Earnings Per Share (EPS) | ₹15.37 |
| Price/Earnings (PE ratio) | 21.99 – 22.12 |
| Return on Net Worth (RONW) | 34.23% |
| Net Asset Value (NAV) | ₹44.91 per share |
Company Promoters
- KamalKumar Rajendra Aggarwal
- Navdeep Naresh Goyal
- Shubharangana Goyal
Promoter holding pre IPO: 70.85%
Chemcon IPO Lead Managers
- Intensive Fiscal Services Private Limited
- Ambit Private Limited
Registrar of Chemcon IPO
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: chemcon.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
Chemcon Contact Details
Chemcon Speciality Chemicals Limited
9th Floor, Onyx Business Center,
Akshar Chowk, Old Padra Road,
Vadodara 390 020
Phone: +91 265 298 1195
Email: investor.relations@cscpl.com
Website: www.cscpl.com
Chemcon IPO Allotment Status
Chemcon IPO allotment status will be available on Link Intime’s website.
Click on this link to get allotment status.
Chemcon IPO subscription status
No. of Times Issue Subscribed (BSE + NSE) | ||||
|---|---|---|---|---|
| QIB | NII | RII | Total | |
| Shares Offered | 1,868,344 | 1,407,249 | 3,283,580 | 6,559,173 |
| Sep 23, 2020 | 113.54x | 449.14x | 41.15x | 149.30 |
Final thoughts
CHEMCON IPO is going to hit Dalal street after the huge success of the happiest minds IPO and route mobiles IPO. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.
happy investing
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