Chemcon Speciality Chemicals IPO: Study Before Subscribing

CHEMCON SPECIALITY CHEMICALS IPO: STUDY BEFORE SUBSCRIBING

It’s a complete housefull in the IPO market after a break of almost 4 months. The pandemic hit the market hard but now the UPCOMING IPO 2020 is ready. Because of the pandemic, pharmaceutical and speciality chemicals producing companies are seeing strong response. Here’s everything that you need to know about the Chemcon IPO.

About Chemcon

Chemcon Speciality Chemicals Ltd was incorporated 1988. Its headquarter is in Vadodara, Gujarat.It is a leading manufacturer of Hexamythyldisilazane (HMDS) and Choloromythyl Carbonate (CMIC) which are predominantly used in pharmaceutical industry and inorganic bromides namely Calcium Bromide, Zinc Bromide and Sodium Bromide which are predominantly used as completion fluids in oilfields industry.

Chemcon Chemicals is a leading manufacturer of Pharmaceutical chemicals and generates maximum revenue from this particular segment.

Hetero Labs Limited, Laurus Labs Ltd, Aurobindo Pharma Ltd , Lantech Pharmaceuticals Ltd, Macleods Pharma Ltd are the key customers of its Pharma chemical business.

Details of Chemcon IPO

OPENS ON:SEPT 21, 2020
CLOSES ON:SEPT 23, 2020
Price band:Rs 338- Rs 340
Lot size:44 shares
1 lot costing:Rs 14960
Listing on:BSE, NSE
Issue size:Fresh issue Rs 165 cr + Offer for sale Rs 153 cr
Fresh Issue:4,852,940 Eq Shares(₹165 Cr)
Offer For Sale:4,500,000 Eq Shares(153 cr) by promoters
Shareholding:Promoter holding will stand 74.47% post-issue.
Will list on exchange on Oct 1, 2020.

Use of funds:
1. To meet capital expenditures for expansion of manufacturing facility
2. To meet business working capital requirements
3. To meet general corporate purposes

Interesting facts about Chemcon IPO:

  • Chemcon supplies their products to customers in India and also exports their products to countries including the United States of America, Germany, Italy, South Korea, China, Japan, United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia.
  • Their top 5 customers and their top 10 customers contributed 59.35% and 72.26%, respectively of their total revenue.
  • Company intends to build 2 additional plants with a total volumetric reactor capacity of 251 KL. These additional plants shall be utilised for the manufacturing of chemicals which are principally used pharmaceutical industry.
  • Aarti Industries, Vinati Organics, Atul Ltd, Paushak, Neogen Chemicals, Fine Organics Industries and Sudarshan Chemicals are among the listed peers of Chemcon.

Marwadi Shares & Finance Ltd have a ‘SUBSCRIBE’ recommendation for Chemcon IPO. To apply for Chemcon IPO, you can do it from our website Marwadi Shares & Finance Ltd.

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