Chemcon Speciality Chemicals IPO Closes on Sep 23; Should you invest?

Chemcon Speciality Chemicals IPO is ready to hit the market on Monday, 21^st September 2020.

The company is to launch its IPO after the successful IPO completion of Happiest Minds Technology and Route mobile this month.

The company plans to raise Rs.317 crore to Rs.318 crore through its IPO offering which will close on Wednesday, 23^rd September 2020. Chemco Speciality Chemicals has fixed the price band of its Initial public offering (IPO) in the range of 338-340 per share.

Company Profile

Chemcon Speciality Chemicals established in the year 1988, the company is a specialized manufacturer of chemicals like CMIC and HMDS. The product portfolio of the company includes Pharma intermediates, Silanes, Oilfield chemicals (Zinc Bromide, Sodium Bromide, and Calcium Bromide).

Chemcon generates its most of the revenue from Pharmaceutical Chemicals segment. The customers of this segment are Aurobindo pharma, Macleods Pharma, Lantech Pharma etc.

The specialty chemicals company not only presents in the domestic market but also exports its products in countries outside India like Malaysia, China, USA, UAE, Serbia, Japan, Russia etc.

Chemcon Speciality Chemicals IPO Details

Issue size: 9,352, 940 equity shares @ Rs.10 each (Rs.318 Cr)
Fresh Issue: 4,852, 940 equity shares @ Rs.10 each (Rs. 165 Cr)   
Offer for sale: 4,500,000 equity shares @ Rs.10 each (Rs. 153 Cr) 
Face value: Rs.10 per equity share
Minimum order quantity: 44 shares
Listing At: BSE, NSE

The company wants to use the proceeds from the IPO for the following purposes:

• To meet capital expenditure for expansion of business.
• To meet working capital requirement.
• To meet corporate general expense.

Why Chemcon Speciality Chemicals is special?

• It is the only manufacturer of HMDS in India.
• The company contributes its maximum revenue from export its products to other countries.
• The customer base of the company is strong enough to make revenue and also it operates in many segments.
• Strong financials of the company is another reason which makes Chemco Speciality Chemicals IPO special.

Quite clearly, there are many reasons to invest your money in Chemco Speciality Chemicals IPO either it is its strong financial position, diversified business, or strong client base.

So, we would suggest you be ready to buy the IPO of this company to make good profit in future.