Chemcon IPO Details

Open Date 21st Sep 2020
Close Date 23rd Sep 2020
Price Band Rs. 338 - Rs. 340 per share
Lot Size 44 equity shares and in multiples of 44 thereafter
Investment Per Lot Rs. 14,960
Listing at NSE and BSE
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Chemcon Speciality Chemicals IPO

Chemcon Speciality Chemicals, is a leading manufacturer of specialised and pharmaceutical chemicals. Chemcon’s key products include: Calcium bromide, Sodium bromide, Zinc bromide, HMDS and CMIC. HMDS and CMIC are predominantly used in the pharmaceutical industry. As of 2019, Chemcon was the only manufacturer of HMDS in India and the 3 rd largest producer worldwide (Source: Frost & Sullivan Report)

Apart from an illustrious roster of elite domestic clients, Chemcon’s exports its products to several markets worldwide including USA, China, Japan, UAE, Serbia, Russia, Malaysia, and Azerbaijan.

  • The total Issue Size is 9.353 - 9.382mn shares (Rs. 3,171 - 3,180mn)
  • Chemcon’s Offer For Sale of 4.5mn Shares of Rs.10 each aggregating at Rs.153 Crores and Fresh Issue of 4.853 - 4.822mn Shares and will be listed in the National and Bombay Stock Exchange.
  • With this IPO; Chemcon intends to meet its capital expenditures for manufacturing facility expansion

Chemcon Speciality Chemicals IPO Dates

Open Date 21st Sep 2020
Close Date 23rd Sep 2020
Allotment Date 28th Sep 2020
Initiation of Refunds 29th Sep 2020
Credit of Shares to Demat Account 30th Sep 2020
Listing Date 1st Oct 2020

Chemcon Speciality Chemicals IPO Price

IPO Price Band Rs. 338 - Rs. 340 per share
Minimum Investment Amount Rs. 14,960
Maximum Investment Amount Rs. 1,94,480
Face Value Rs. 10 per equity share

Chemcon Speciality Chemicals IPO Lot Size

Minimum Lot Size 1 (44 shares)
Maximum Lot Size 13 (572 shares)

Chemcon Speciality Chemicals IPO Review/Ratings

Key Competitive Strengths

  1. A leading manufacturer of the Pharmaceutical chemicals globally and a leading manufacturer Oilwell completion chemicals in India.
  2. Diversified customer base coupled with long standing relationships.
  3. The specialty chemicals industry in which it operates has high entry barriers.
  4. Manufacturing facility with dedicated plants for its products • Consistent financial performance with a strong financial position.

Risks and Concerns

  • Geopolitical tension in the Asia region.
  • Subdued economic growth and lower demand of its product.
  • Unfavorable volatility in the key raw material prices.
  • Delay in demand revival of Oilwell completion chemicals.
  • Unfavorable movement in forex rates.
  • Difficulty in maintaining the profitability.

Download the CHEMCON IPO Report

Chemcon Speciality Chemicals IPO Subscription Breakup

QIBs 50%
Non-Institutional Investors 15%
Retail Individual Investors 35%

Chemcon IPO Fundamental Analysis

  1. The Net profit increased from 430.4 mn in FY 19 to 488.5 mn in FY 20. This is a growth of 13.50%.
  2. Chemcon supplies its products to domestic customers and also exports to countries including the USA, Italy, South Korea, Germany, the People’s Republic of China, Japan, UAE, Serbia, Russia, Spain, Thailand, and Malaysia.
  3. Mr. Kamalkumar Rajendra Aggarwal, Mr. Navdeep Naresh Goyal and Mr. Shubharangana Goyal are the promoters of Chemcon.
  4. After this issue, the promoter holding will drop from 100% to 74.47% and Public shareholding will rise to 25.53%.
  5. In terms of production volume in 2019, Chemcon is the only manufacturer of HMDS in India and the third-largest manufacturer worldwide. The company is also the largest manufacturer of CMIC in India and the second largest in the world.
  6. Price to Earnings Ratio (P/E) for FY20 = 25.5
  7. Debt to Equity Ratio (D/E) for FY20 = 0.1
  8. Earnings Per Share (EPS) = 35.7
  9. Return on Equity (ROE) for FY 20 = 15.7%
  10. Price to Book Ratio (P/B) = 4.0
  11. Return on Assets (ROA) = 21.6%
  12. Return on Capital Employed (ROCE) = 22.7%

Online Procedure to Apply For Chemcon IPO

  1. Go to the IPO Section => IPO Listing => Open IPO.
  2. On tapping Chemcon Speciality Chemicals IPO, you can directly click on Subscribe to apply or even view the IPO details.
  3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
  4. Once you select ‘Subscribe’. Your bid will be executed.
  5. You can check the status of your IPO bid in the IPO Transactions section.
Click here to read the entire procedure to apply for the IPO
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Chemcon Speciality Chemicals IPO FAQs

Yes, IPO application for Retail Investors is up to 2 Lakhs.
You will have to opt for the ASBA – Application Supported by Blocked Amount facility. Please get in touch with your bank for the same, do check if your bank is in the list of Banks here:
No. Applications made by retail investors using third party UPI ID or by any category of investors using a third party bank account are liable for rejection.
Yes, before the issue closure date. You can do it through Jiffy itself. The blocked amount will be available in 1 working day.
You can check the status of your IPO application via this BSE link https://www.bseindia.com/investors/appli_check.aspx just fill in a few details and the status will be shown.