Chemcon Specialty Chemicals

IPO Details

Below are key details about the IPO of the Company

• IPO Start Date – 21st Sep 2020
• IPO End Date – 23rd Sep 2020
• IPO Price – INR 338 – 340
• IPO Lot Size – 44
• Minimum investment required – INR 14,960

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Business Details

Chemcon Specialty Chemicals is a Chemicals sector Company. It is one of the largest manufacturer of calcium bromide in India.

Below are the key products offered by the Company

• Oil field Chemicals
  • Calcium Bromide
  • Sodium Bromide
  • Zinc Bromide
• Pharmaceutical Chemicals
  • Hexamethyl Disilazane
  • Chloromethyl Isopropyl Carbonate
  • Trimethyl Chlorosilane
  • Hexamethyl Disiloxane
• Contract manufacturing
  • Custom manufacturing based on Client requirements.

Below are different industries in which the products from this Company finds application

• Pharmaceutical
• Oil field and Petroleum
• Rubber and Coating
• Semiconductor
• Electronics
• Cosmetics

The Company majorly exports its products to Middle East and US with some presence in Europe as well. It has not penetrated in other North American countries. It is also absent in South America and Africa continent. Thus leaving scope of growth in these geographies going forward.

It has manufacturing plant located near Vadodara in Gujarat.It is one of the largest manufacturer of HMDS and CMIC chemical worldwide.

Financial Snapshot

Below are key financials of the Company for year ending 2020

• Total Income – 2660.17
• Profit for year – 488.53

IPO Subscription Status

Below is IPO Subscription status of the Company. I will be updating this section with time.

• QIB – 31.22 times
• NII – 298.23 times
• RII – 34.54 times
• Total Subscription is 90.17 times

Below is meaning of the Key terms used above

• QIB is (Institutes or Mutual Funds like HDFC AMC etc)
• NII is (People bidding for more than 2 lakhs in IPO application)
• RII is (People bidding for less than 2 lakhs)
• Employee and Others are Reserved Quota Investors.

My Opinion

Chemcon Specialty Chemicals is in Chemicals sector. Currently Indian Chemical Industry is in lime light due to tensions with China and recent focus from the Government.

This may help the Company get good IPO subscription. However there are two other alternative IPO investors have in the same time frame. This makes the decision tough for retails investors.

One must see the subscription status and then make a decision.Overall Company does have some good market share in couple of products which are key ingredient in industries like Pharma and Oil field which gives it edge over other players.