Should we invest
Chemcon Speciality Chemicals IPO
(i) They are an ISO 9001:2015 and ISO 14001:2015 certified company for the “Manufacture and supply of pharmaceutical intermediates, silanes, and oilfield chemicals. Chemcon Speciality is a manufacturer of specialized chemicals, such as HMDS and CMIC which are predominantly used in the pharmaceutical industry, and inorganic bromide, namely Calcium Bromide, Zinc Bromide, and Sodium Bromide, which are predominantly used as completion fluids in the oilfields industry.
(ii) As per Frost & Sullivan Report, they were the only manufacturer of HMDS in India and were the third-largest manufacturer of HMDS worldwide in terms of production in the calendar year 2019. They were the largest manufacturer of CMIC in India and the second-largest manufacturer of CMIC worldwide, in terms of production and capacity in the calendar year 2019. Further, they were the only manufacturer of Zinc Bromide and the largest manufacturer of Calcium Bromide in India, in terms of production in the calendar year 2019.
(iii) They have customers in the Domestic and as well as in the export market. The export market consists of products to countries including the United States of America, Italy, South Korea, Germany, the People’s Republic of China, Japan, the United Arab Emirates, Serbia, Russia, Spain, Thailand, and Malaysia. In Fiscals 2020, 2019, and 2018, the revenue from exports was 39.78%, 31.99%, and 47.84%, respectively of the total revenue from operations and the CAGR growth is 17%.
(iv) The key customers of Chemcon are Pharmaceutical Chemicals include Hetero Labs Limited, Laurus Labs Limited, Aurobindo Pharma Limited, Sanjay Chemicals (India) Private Limited, Lantech Pharmaceuticals Limited, Ind -Swift Laboratories Limited, Vivin Drugs & Pharmaceuticals Limited, and Macleods Pharmaceuticals Limited and the key customers of our Oilwell Completion Chemicals include Shree Radha Overseas, Water Systems Specialty Chemical DMCC, and CC Gran Limited Liability Company.
(v) The manufacturing facility is located at Manjusar near Vadodara in Gujarat.
The company produces chemicals for the Pharmaceuticals industry, so their manufacturing facility was only temporarily shut during the pandemic from March 24, 2020, till March 31, 2020. They resumed manufacturing the Pharmaceutical Chemicals on April 1, 2020.
However, the raw materials for making these chemicals are procured from the local and global markets. So initially they face issues in getting raw materials but the problem is sorted now as the Govt has opened the economy.
1. Pharma Chemicals contribute around 63% in FY19-20.
Pharma Sector is really doing good, so this segment will perform well.
2. Oilwell Completion Chemicals contribute 37% in FY19-20.
The commercial success of the Oilwell Completion Chemicals is dependent upon the level of oil and gas exploration, development, and production activities. The oil and gas exploration and production industry is historically a cyclical industry characterized by significant changes in the levels of exploration and development activities.
According to Frost & Sullivan, the oil and gas industry is experiencing its third price collapse in a decade and globally there is wide-scale destruction of demand associated with COVID-19. Global level travel bans and grounding of international flights has resulted in a substantial reduction in consumption of aviation turbine fuel across the globe and demand for fuels except for LPG and domestic natural gas has also recorded a tremendous drop.
The reduced demand for oil and gas in Fiscal 2021 has resulted in reduced demand for Oilwell Completion Chemicals.
Objects of the Chemcon Speciality Chemicals IPO:
Chemcon Speciality Chemicals IPO Details:
|Open Date:||Sep 21 2020|
|Close Date:||Sep 23 2020|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||318 Cr.|
|Lot Size:||44 Shares|
|Issue Price:||₹ 338-340 Per Equity Share|
|Listing Date:||Oct 01 2020|
Promoters And Management:
Financials of Chemcon Speciality Chemicals IPO:
|Change in Inventory||-44||-98||-20|
|Profit before tax||435||612||626|
|EPS in Rs||8.03||11.77||12.72|
Comparison With Peers:
Recommendation on Chemcon Speciality Chemicals IPO:
Lead Manager of Chemcon Speciality Chemicals IPO:
Registrar of Chemcon Speciality Chemicals IPO:
Discussion on Chemcon Speciality Chemicals IPO:
Good luck for tomorrow’s listing.
Hi..i have brought 287 shares @683..chemcon is dropping..should i avg more or exit at some price already huge loss..pls suggest
Chemcon Speciality Chemicals Limited
Listing:- Thursday, October 1, 2020 in the list of ‘B’ Group of Securities.
ISIN NO:- INE03YM01018
Applied 1+1 Lot.
Allotted 0+0 Lot ( in 2 PAN).
i think i should stop applying..last 4 ipo applied got zero allotment..
Bad luck 0/5 😒
*CAMS – CHEMCON IPO*
Check Allotment On above link ⌨️💻🖥️
CHEMCON Chemical IPO
GMP 325 +/- 2
Kostak 475+/- 25
GMP 320 +/- 2
Kostak 950 +/- 25
Chemcon QIB : 62.83x. HNI : 357.72x. RETAIL : 35.63x. TOTAL : 112.43
CAMS @3.38 PM. QIB : 53.22x. HNI : 92.64x. RETAIL : 4.89x. EMPLOYEES: 0.61x TOTAL : 37.03
What is it for Angel broking?
Also, can you please add Q1 numbers for Chemcon also?
@ admin sir, when I checked my ipo application status in bse it’s showing as upi mandate pending but in phonepay it shows as fund blocked sucessful… Please guide why it’s showing pending at bse
Minus 8 for angel broking
GMP is indicating good listing gain. So apply. Only concern is weak financials and timid revenue growth. But listing pe Nikal jao
Apply in Chemcon..
also i was going through a report in mint by geojit financial services which mentioned P/E is 25.5 whereas in our report it is mentioned as 28 ..not sure which one is correct..
Please check on the basis of which year financials they have calculate EPS and P/E
thanks guys for input ..i also feel speciality chemical is in demand and might have greater demand for ipo seeing the mood of investors butnot very sure
Anchor list of Chemcon Chemicals:
is 3 means not to be subsribed ..i have only seen sbi card given as 6 points and even happy mind was givenjust 5 .. where as per listing shown it should have been given at least 8..3 means not to be subscribed?
I believe the rating is considering long term prospectus…listing gains wise this will list minimum 50% premium…
Yes, as our analysis, it is risky to enter Chemcon for long term prospects. The listing game is very different, it depends upon demand and supply. The anchor list will give us a clear picture.
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