Can you tell me about the proposed IPO of Archean Chemicals?

Even as a slew of IPOs are unwilling to announce the IPO dates despite getting the approval of SEBI, there are also a number of new companies filing for approvals with SEBI. The latest in the queue is Archean Chemical Industries which has just filed its draft red herring prospectus (DRHP) with SEBI. Archean Chemicals is a specialty marine chemicals companies and has been a steady performer, turning around to profits in the latest FY21 year.

The IPO will comprise of Rs.1,000 crore of fresh issue and in addition a total of 1.91 core shares will be offered as part of the OFS by promoters and early shareholders. The new issue proceeds will be applied to redeem Rs.800 crore of NCDs to reduce its debt burden and improve solvency ratios. For FY21, Archean had revenues of Rs.741 crore and net profits of Rs.67 crore, implying 9% net margins. IIFL Securities, I-SEC and JM are the lead managers.