Archean Chemical Industries IPO lists at premium of 10.57%

Archean Chemical Industries Ltd had a healthy listing on 21st November 2022, listing at a premium of 10.57%, and closing the day well above the IPO price at the end of the day on listing day. While the stock did show some bouts of volatility during the day, it closed more than 12% above the issue price on the first day of trading on the NSE. With subscription of 32.23X overall and QIB subscription at 48.91X, the listing was expected to be healthy, at the very least. Here is the Archean Chemical Industries Ltd listing story on 21st November 2022.

The IPO price was fixed at the upper end of the band at Rs.407 which is rather normal considering the rather attractive 32.23X overall subscription and 48.91X subscription for the QIB portion. The price band for the IPO was Rs.386 to Rs. 407. On 21st November 2022, the stock of Archean Chemical Industries Ltd listed on the NSE at a price of Rs.450, a premium of 10.57% over the issue price of Rs. 407. On the BSE also, the stock listed at Rs. 449 a premium of 10.32% over the issue price.

On the NSE, Archean Chemical Industries Ltd closed on 21st November 2022 at a price of Rs. 458. That is a first day closing premium of 12.53% on the issue price of Rs. 407. However, the stock closed at a more subdued premium of 1.78% on the listing price of Rs. 450 per share. On the BSE, the stock closed at Rs. 457.95. That represents a first day closing premium of 12.52% over the issue price and a relatively more subdued premium of 1.99% over the listing price on the stock exchange. On both the exchanges, the stock listed above the IPO issue price and also closed trading on Day-1 marginally below the listing price. Clearly, the reason for the strong performance post listing seems to be that chemical stocks have been playing the China story quite well. There was overall some pressure in the market on Wednesday and the stock would have done better but for the market overhang.

On Day-1 of listing, Archean Chemical Industries Ltd touched a high of Rs. 476 on the NSE and a low of Rs. 440.20. The premium over the issue price sustained through the day. In fact, if you look at the range of prices, the stock never went below the issue price through the day. However, the pressure on the stock is visible from the fact that the close was much lower than the high and that could be more due to the overall market under stress. On Day-1 of listing, the Archean Chemical Industries Ltd stock traded a total of 221.87 lakh shares on NSE amounting to value of Rs.1,013.83 crore on the first day, which is good volumes on Day-1. The order book during the day showed a lot of buying pressure at every dip with the buy orders exceeding the sell orders for better part of the trading session.

On the BSE on Day-1 of listing, Archean Chemical Industries Ltd touched a high of Rs.476.05 and a low price of Rs.440.05. The premium to issue price sustained through the day. In fact, like on the NSE, even on the BSE, if you look at the range of prices, the stock never dipped below the issue price through the day but the stock closed well below the high price of the day. On Day-1 of listing, the Archean Chemical Industries Ltd stock traded a total of 11.19 lakh shares on the BSE amounting to value of Rs. 51.24 crore on the first day. While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed buying pressure through most part of the trading day with the buy orders exceeding the sell orders consistently through the day. That made it a buy on dips stock, especially in the second half of the trading day. However, the stock could have done better with a more supportive market condition.

At the close of Day-1 of listing, Archean Chemical Industries Ltd had a market capitalization of Rs. 5,635.21 crore with free-float market cap of Rs. 901.63 crore.