Chemcon Specialty Chemicals is a leading speciality chemicals manufacturer in India. The company specialized in manufacturing of chemicals, engaged in the manufacturing and sale of the Pharmaceutical Chemicals and the Oilwell Completion of Chemicals.

Chemcon specializes in the manufacture of Calcium bromide, Sodium bromide, and Zinc Bromide. It caters to oil and gas companies, API (Active Pharmaceutical Ingredient) manufacturers, and also provided contract manufacturing solutions. The company is looking to raise Rs 350 crores. The issue consists of a fresh issue of shares worth Rs 175 crores and an offer for sale for the remaining.

Company is the only manufacturer of HMDS in India and were the eighth largest manufacturer of HMDS worldwide in terms of production in the calendar year 2018. Chemcon Specialty is also 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 (source: Frost & Sullivan Report).

Strength of Chemcon

1) The largest manufacturer of pharmaceutical chemicals across the globe.
2) Leading oilfield chemicals manufacturer in India.
3) Supply products to domestic customers and as well as customers outside India
4) Strong and consistent financial performance.
5) Dedicated manufacturing plants for each product.

Risk factor:

1) Company business includes the manufacturing, marketing and supply of specialised chemicals largely used in the pharmaceuticals and oilfield industries. Any decrease in the utility of their products for such industries may have an adverse impact on our business, growth and results of operations.

2) Limited product portfolio and their business may be adversely affected if any of their products do not continue to perform as expected

Chemcon IPO Details

IPO Opens on: 21 September 2020 

IPO Closes on: 23 September 2020

Price Band:  Rs 338-340 per share

Bid Lot: 44 shares and in multiples of 44 shares

Minimum Investment: Rs 14,960

Maximum Investment: Rs 194,480

Fresh issue: Rs 165 Cr

Offer for Sale: Rs 153 Cr

IPO Size: Rs 318 Cr

Retail Allocation: 35%

Retail & Employees Discount: Rs 0 per share

Chemcon IPO Time Line

Finalisation of Allotment: 28 September 2020

Initiation of Refunds: 29 September 2020

Transfer of Shares to Demat Account: 30 September 2020

Listing At: NSE & BSE

Listing Date: 1 October 2020

Financial Performance of (in Crores) Chemcon

FY2018 FY2019 FY2020
Total Revenue 158.4 305.3 266.0
Total Expense 117.8 244.1 201.1
Net Income 26.6 43.4 49.3
Net margin (%) 16.8 14.2 18.5

Chemcon IPO Valuations

Face Value = Rs 10

Earnings Per Share (EPS) = Rs 15.37

PE Ratio =  To Be Updated

Return on Net Worth (RONW) = 34.23%

Net Asset Value = 44.91 /Share

Chemcon IPO Subscription Details as on ( 23 Sept 6:00 pm)

Category Shares offered Subscription (no. of times)
Day 1 Day 2 Day 3

QIB

1,868,344 0.00x 1.37x 113.54x
NII 1,407,249 1.24x 3.50x 449.14x
Retail 3,283,580 9.83x 22.94x 41.15x
Total 6,559,173 5.19x 12.62x 149.30x

Grey Market Premium of Chemcon IPO Day by Day

Grey market premium as on 01-10-2020 = Rs 340-350/Share

Grey market premium as on 30-09-2020 = Rs 325-330/Share

Grey market premium as on 29-09-2020 = Rs 380-390/Share

Grey market premium as on 28-09-2020 = Rs 380-390/Share

Grey market premium as on 27-09-2020 = Rs 340-350/Share

Grey market premium as on 26-09-2020 = Rs 340-350/Share

Grey market premium as on 25-09-2020 = Rs 300-310/Share

Grey market premium as on 24-09-2020 = Rs 270-280/Share

Grey market premium as on 23-09-2020 = Rs 240-245/Share

Grey market premium as on 22-09-2020 = Rs 240-245/Share

Grey market premium as on 21-09-2020 = Rs 245-250/Share

Grey market premium as on 20-09-2020 = Rs 225-230/Share

Grey market premium as on 19-09-2020 = Rs 225-230/Share

Grey market premium as on 18-09-2020 = Rs 225-230/Share

Grey market premium as on 17-09-2020 = Rs 205-210/Share

Grey market premium as on 16-09-2020 = Rs 205-210/Share

Grey market premium as on 15-09-2020 = Rs 350/Share

Grey market premium as on 14-09-2020 = Rs 350/Share

Tell us about you

Find us at the office

Kajioka- Constanza street no. 39, 50889 Kuala Lumpur, Malaysia

Give us a ring

Deunte Staunton
+59 850 269 756
Mon - Fri, 10:00-14:00

Reach out