- Archian Chemical Industries Limited’s IPO price band has been fixed at ₹ 386 to ₹ 407 per equity share, with each equity share having a face value of ₹ 2;
ARCHIAN CHEMICAL INDUSTRIES LIMITED (“ACIL” or “Company”) has presented a proposal for its IPO. The IPO will open on November 09, 2022, Wednesday. Equity shares under the IPO (“Equity shares”) will be offered and each equity share has a face value of ₹ 2.
Fresh issue of equity shares up to ₹ 8,050.00 million in IPO (“Fresh issue“) and the Offer for Sale of 16,150,000 Equity Shares (“Offer for sale”, and jointly with Fresh Issue “Offer”) is involved. The deadline for anchor investor bids will be Monday, November 7, 2022. Offer closes on Friday, November 11, 2022.
The price band of the offer is fixed at ₹ 386 to ₹ 407 per equity share. Bids can be made for a minimum of 36 equity shares and then in multiples of 36 equity shares.
AICL will utilize the net proceeds from the fresh issue for: (i) the Company issued non-convertible debentures of ₹ 6,440.00 million (“NCDs“) part or whole, redemption or early redemption of; and (ii) use the balance for ordinary corporate purposes (“Objectives of the Offer“).
In the offer for sale Chemikas Specialty LLP (“Promoter Seller Shareholder“) and 3,835,562 equity shares by India Resurgence Fund, Scheme 1, 6,478,876 equity shares by India Resurgence Fund, Scheme 2, 3,835,562 equity shares by Piramal Natural Resources Private Limited (together, “Investors Sellers Shareholders“ And with promoter seller shareholders, “SELLER SHAREHOLDERS“) is involved.
Red Herring Prospectus (“Red Herring Prospectus”) filed by the Company with the Registrar of Companies, Tamil Nadu at Chennai on October 31, 2022 (“RoC”) (“RHP”) has offered equity shares and is listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) will be on. The designated stock exchange for the purposes of the Offer will be the NSE.
Rule 19(2)(b) of the Offer Securities Contracts (Regulation) Rules, 1957 (“SCRR”), in terms of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI ICDR regulations”) read with Regulation 31 is introduced.
The offer is made through a book building process in accordance with Regulation 6(2) of the SEBI ICDR Regulations and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein at least 75 per cent of the net offer is made to qualified institutional buyers on a proportionate basis (“QIBs”, “QIB portion”), provided that,
Company Book Running Lead Managers (“BRLMs“) will allocate 60 percent of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor investor stake”), out of which, as per SEBI ICDR regulations, one-third will be reserved for domestic mutual funds, subject to receipt of valid bids from domestic mutual funds at or above the anchor investor allotment price.
Also, 5 per cent share of QIB portion (excluding anchor investor share) (“Net QIB Portion“) will be made available for allocation to mutual funds on a proportionate basis and the balance of net QIBs will be made available for allocation to all QIBs on a proportionate basis,
Including mutual funds, which are subject to receipt of valid bids at or above the offer price. However if the total demand from mutual funds remains less than 5 percent of the net QIB portion, the remaining equity shares available for allocation in the mutual fund portion will be added to the remaining net QIB portion for allocation to QIBs on a proportionate basis.
Further, a minimum of 15 per cent of the offer shall be made available for allotment to non-institutional bidders, wherein (a) one-third of the non-institutional portion shall be made available for allotment to bidders whose application is above ₹ 200,000 and up to ₹ 1,000,000 and (b) non- -Two-thirds of the institution portion will be made available to bidders with applications amounting above ₹ 1,000,000,
Provided that, if any of these two sub-categories of non-institutional portion is under-subscribed, the non-institutional portion (“non-institutional portion” as per SEBI ICDR rulesNon-institutional portion“) may be allotted to bidders in other subcategories, subject to valid bids at or above the offer price and a maximum of 10 per cent of the offer is available for allotment to RIBs, subject to receipt of valid bids at or above the offer price.
All potential bidders (other than Anchor Investors) shall receive an Application Supported by Blocked Amount (“ASBA”) is required to make mandatory use of the application supported by the process, for which details of their respective bank accounts have to be provided
And UPI bidders using the UPI system will have to provide details of the UPI ID, if applicable, in cases where the bid amount will be blocked by SCSBs participating in the offer or by the sponsoring bank under the UPI system. Anchor investors are not permitted to participate in the offering through the ASBA process. For detailed information see page 367 of RHP “Offer Procedure ” see.
There are book running lead managers of the offer – IIFL Securities Limited, ICICI Securities Limited and JM Financial Limited.