InvestorQ : What is your view on the Chemcon IPO that is opening for subscription shortly?
swati Bakhda made post

What is your view on the Chemcon IPO that is opening for subscription shortly?

Answer
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Sam Eswaran answered.
2 weeks ago


Chemcon, a speciality chemicals company, plans to launch its IPO on 21 September. The company had filed its prospectus with SEBI on 12 September. The last few weeks have seen a flurry of activity in the IPO market as interest appears to be returning.

Chemcon also has a product positioning advantage as it is a manufacturer of HMDS and CMIC. Both these are specialty chemicals and are predominantly used in pharmaceuticals industry. Now, Chemcon is coming out with an IPO to raise Rs 350-400 crore.

The Chemcon public issue consists of fresh issue of Rs.165 crore and an OFS of the balance issue size. While the IPO price band is yet to be announced, market experts peg the IPO in the price band of Rs.295-300.

Chemcon will utilise the proceeds of the fresh issue to bankroll the expansion of its manufacturing facility and also to meet working capital needs. Of course, the OFS portion will not result in any cash inflow into the company.

Chemcon supplies to domestic and global customers. It currently exports products to countries like the United States, China, Japan, United Arab Emirates, Azerbaijan, Serbia, Russia and Malaysia. Its domestic customers include pharma names like Laurus, Hetero, Aurobindo, Ind-Swift etc.