On its first day, Archean Chemical's stock rose 12%

22 Nov 2022 , 09:50 AM

In their Friday stock market debut, shares of Archean Chemical Industries increased by more than 12%. Shares of the manufacturer of specialty chemicals closed at Rs. 458, up Rs. 51, or 12.53 percent, from their initial offer price of Rs. 407 per share.

On the NSE, where shares worth Rs 1,014 crore changed hands during the intraday session, the stock reached highs of Rs 476 and lows of Rs 440.2. 32 times as many people subscribed to Archean’s first public offering (IPO). The company has raised Rs 805 crore through the IPO in new funding to reduce its debt. Its IPO also included a secondary share offering for Rs 657 crore.

The company was valued at Rs 5,635 crore at the most recent closure, which is about 30 times its Rs 189 crore in FY22 earnings. Archean Chemical reported a net profit of Rs 84 crore on revenues of Rs 400 crore for the first quarter of the fiscal year 2022—2023.

The company’s first public offering (IPO) was subscribed 32.23 times, with qualified institutional purchasers providing the majority of the support by placing bids that were 48.91 times the authorized amount. High net worth buyers purchased 14.90 times the permitted quota, and the retail portion was booked 9.96 times.

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