Chemcon Speciality Chemicals, is a leading manufacturer of specialised and pharmaceutical
chemicals. Chemcon’s key products include: Calcium bromide, Sodium bromide, Zinc bromide,
HMDS and CMIC. HMDS and CMIC are predominantly used in the pharmaceutical industry. As of
2019, Chemcon was the only manufacturer of HMDS in India and the 3 rd largest producer
worldwide (Source: Frost & Sullivan Report)
Apart from an illustrious roster of elite domestic clients, Chemcon’s exports its products to
several markets worldwide including USA, China, Japan, UAE, Serbia, Russia, Malaysia, and
- The total Issue Size is 9.353 - 9.382mn shares (Rs. 3,171 - 3,180mn)
- Chemcon’s Offer For Sale of 4.5mn Shares of Rs.10 each aggregating at Rs.153 Crores
and Fresh Issue of 4.853 - 4.822mn Shares and will be listed in the National and Bombay
- With this IPO; Chemcon intends to meet its capital expenditures for manufacturing
Chemcon Speciality Chemicals IPO Dates
||21st Sep 2020
||23rd Sep 2020
||28th Sep 2020
|Initiation of Refunds
||29th Sep 2020
|Credit of Shares to Demat Account
||30th Sep 2020
||1st Oct 2020
Chemcon Speciality Chemicals IPO Price
|IPO Price Band
||Rs. 338 - Rs. 340 per share
|Minimum Investment Amount
|Maximum Investment Amount
||Rs. 10 per equity share
Chemcon Speciality Chemicals IPO Lot Size
|Minimum Lot Size
||1 (44 shares)
|Maximum Lot Size
||13 (572 shares)
Chemcon Speciality Chemicals IPO Review/Ratings
Key Competitive Strengths
A leading manufacturer of the Pharmaceutical chemicals globally and a leading
manufacturer Oilwell completion chemicals in India.
Diversified customer base coupled with long standing relationships.
The specialty chemicals industry in which it operates has high entry barriers.
Manufacturing facility with dedicated plants for its products • Consistent financial
performance with a strong financial position.
Risks and Concerns
Geopolitical tension in the Asia region.
Subdued economic growth and lower demand of its product.
Unfavorable volatility in the key raw material prices.
Delay in demand revival of Oilwell completion chemicals.
Unfavorable movement in forex rates.
Difficulty in maintaining the profitability.
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Chemcon Speciality Chemicals IPO Subscription Breakup
|Retail Individual Investors
Chemcon IPO Fundamental Analysis
- The Net profit increased from 430.4 mn in FY 19 to 488.5 mn in FY 20. This is a growth of
- Chemcon supplies its products to domestic customers and also exports to countries
including the USA, Italy, South Korea, Germany, the People’s Republic of China, Japan,
UAE, Serbia, Russia, Spain, Thailand, and Malaysia.
- Mr. Kamalkumar Rajendra Aggarwal, Mr. Navdeep Naresh Goyal and Mr.
Shubharangana Goyal are the promoters of Chemcon.
- After this issue, the promoter holding will drop from 100% to 74.47% and Public
shareholding will rise to 25.53%.
- In terms of production volume in 2019, Chemcon is the only manufacturer of HMDS in
India and the third-largest manufacturer worldwide. The company is also the largest
manufacturer of CMIC in India and the second largest in the world.
- Price to Earnings Ratio (P/E) for FY20 = 25.5
- Debt to Equity Ratio (D/E) for FY20 = 0.1
- Earnings Per Share (EPS) = 35.7
- Return on Equity (ROE) for FY 20 = 15.7%
- Price to Book Ratio (P/B) = 4.0
- Return on Assets (ROA) = 21.6%
- Return on Capital Employed (ROCE) = 22.7%