With respect to the IPO market, the current financial year, after experiencing a slump in the first half due to the COVID-19 pandemic, is quickly showing signs of massive improvement. A couple of new IPOs have already hit the market and have received exceptional interest from investors. One among the list of upcoming IPOs is the Chemcon IPO that’s scheduled to hit the shores on September 21, 2020. If you’re looking for Chemcon IPO news, here’s everything that you need to know about this latest IPO.
About the company
Chemcon Speciality Chemicals Limited is a Gujarat-based manufacturer of pharmaceutical chemicals, oilfield chemicals, and silanes. Incorporated in the year 1988, Chemcon Speciality Chemicals has grown tremendously over the years. In addition to the three business segments mentioned above, Chemcon Chemicals is also involved in providing contract manufacturing services to other businesses as well.
The company boasts of an extensive product range that includes the manufacture of specialized chemicals such as Hexamethyl Disilazane (HMDS) and Chloromethyl Isopropyl Carbonate (CMIC), among others. With respect to the manufacture of HMDS and CMIC, Chemcon Chemicals is currently the 8th largest and the 2nd largest manufacturer in the entire world.
In addition to having a strong domestic presence, Chemcon Speciality Chemicals is also involved in exporting the products manufactured by it to various countries across the world. This includes major countries like the USA, China, Japan, Russia, the UAE, and Malaysia, among others.
Backed by more than 3 decades of experience and a large client base, the company is now planning to go public via the Chemcon Chemicals IPO. Read on to find out more about the latest Chemcon Chemicals IPO news.
Details of the upcoming Chemcon IPO
Let’s take a look at some of the important Chemcon IPO news including the Chemcon Chemicals IPO date , the Chemcon share price band, and other relevant Chemcon Chemicals IPO news.
Chemcon IPO date
According to the Red Herring Prospectus (RHP) filed by the company with the Securities and Exchange Board of India (SEBI), the Chemcon Chemicals IPO date is scheduled for September 21, 2020. The Chemcon IPO is slated to come to a close on September 23, 2020. As with a majority of the latest IPOs, the issue would remain open only for 3 days.
Chemcon IPO issue size
Now that you’re aware of the Chemcon IPO date, let’s move onto the issue size of the upcoming Chemcon IPO.
The total number of shares being issued to the public via the new IPO of Chemcon Speciality Chemicals Limited would be around 9,352,940 equity shares. The total proceeds from this issue are likely to come up to Rs. 318 crores.
According to the RHP of this latest IPO, the upcoming IPO issue consists of a fresh issue of shares and an Offer for Sale (OFS) component as well. The company would be issuing fresh equity shares of around 4,852,940 equity shares aggregating up to Rs. 165 crores.
Meanwhile, the remaining 4,500,000 equity shares aggregating up to Rs. 153 crores of the Chemcon IPO would be an Offer for Sale (OFS) from the promoters of the company. The complete breakup of the promoters and the number of shares being sold by them through the OFS route of this upcoming IPO are as follows:
- Kamalkumar Rajendra Aggarwal - 2,250,000 equity shares
- Naresh Vijaykumar Goyal - 2,250,000 equity shares
Chemcon IPO price
Although the Chemcon share price face value is just Rs. 10 per equity share, the Chemcon IPO price is set to Rs. 338 to Rs. 340 per equity share. This would allow the company to net around Rs. 328 to Rs. 330 per equity share as share premium.
Chemcon IPO listing
Chemcon Speciality Chemicals Limited, via its RHP, has received in-principle approvals from both the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE) with respect to the listing of its shares.
Chemcon IPO objectives
The company plans to use the net proceeds from the ‘fresh issue of shares’ for the following objectives.
- To meet the capital expenditure requirements for the expansion of its manufacturing facilities
- To meet the working capital requirements
- For general corporate purposes
Now all you need, is an online demat account to invest in Chemcon speciality chemicals IPO and make the most of your investments!
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