{"id":552,"date":"2020-09-19T14:49:40","date_gmt":"2020-09-19T14:49:40","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=552"},"modified":"2020-09-19T14:49:43","modified_gmt":"2020-09-19T14:49:43","slug":"chemcom-ipo-to-open-on-sep-21-should-you-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/chemcom-ipo-to-open-on-sep-21-should-you-subscribe\/","title":{"rendered":"Chemcom IPO to Open on Sep. 21. Should you Subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Don\u2019t worry Computer Age Management\nServices Ltd. (CAMS), Chemcon Speciality Chemicals IPO is joining you on 21<sup>st<\/sup>\nSeptember for subscription and keep active for tough competition. The Chemcon\nIPO is a blend of Offer for sale and fresh issue in which 4,500,000 equity\nshares are allowed to sell for an aggregate amount of Rs.&nbsp; 153 crores at the upper price band while the\nnew issue will fetch Rs. 165 crores by issuing an aggregate of 4,852,940\nshares. Promoters of the company: Kamalkumar Rajendra Aggarwal and Naresh\nVijaykumar Goyal are selling their entire stake.<\/p>\n\n\n\n<p>\u00a0The net proceeds from the fresh issue will be utilized for meeting capital expenditures to expand manufacturing facility, working capital requirements and general corporate purposes.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Chemcon_IPO_Details\" title=\"Chemcon\nIPO Details\">Chemcon\nIPO Details<\/a><\/li><li><a href=\"#Company_Overview\" title=\"Company\nOverview\">Company\nOverview<\/a><\/li><li><a href=\"#Peer_Comparison\" title=\"Peer\nComparison\">Peer\nComparison<\/a><\/li><li><a href=\"#SWOC_Analysis\" title=\"SWOC\nAnalysis\">SWOC\nAnalysis<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Chemcon\nIPO Details<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Chemcon\nSpeciality Chemicals Limited<\/li><li>Industry: Chemicals<\/li><li>IPO Size: 318 cr.<\/li><li>Price Band: 338-340<\/li><li>Issue Open Date: 21 Sep, 20<\/li><li>Issue Close Date: 23 Sep, 20<\/li><li>Listing date: Oct 01, 20<\/li><li>Status: Upcoming<\/li><li>Minimum Lot Size: 44 shares<\/li><li>Employee Discount: NA<\/li><li>Face Value: 10 RS. Per-share<\/li><li>Retail Allocation: 35%<\/li><li>Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Company\nOverview<\/strong><\/h2>\n\n\n\n<p>Gujarat-based ISO\n9001:2015 and 14001:2015 certified company has a history of more than two\ndecades in the chemical industry. Chemcon speciality chemicals are the sole\nproducer of HMDS (Hexamethyldisilazane) and CMIC which are used in the pharmaceutical\nindustry predominantly. The company is the third-largest manufacturer of HMDS\nand second-largest manufacturer of CMIC in the world. The product portfolio of\nthe company is not limited to the pharmaceutical industry but has strong\nfootprints in the oilfield segment. The company produces Calcium Bromide, Zinc\nBromide and Sodium Bromide which are used as completion fluids in the\noilfields. The company also undertakes contract manufacturing projects for\nchemical custom manufacturing. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Peer\nComparison<\/strong><\/h2>\n\n\n\n<p>In the listed\nspace, the company has several competitors such as Vinati Organics, Aarti\nIndustries, Sudarshan Chemical Industries, Fine Organic Industries, Atul,\nPaushak and Neogen Chemicals. However, the product mix of the company and its\nglobal coverage makes it a major player in the oligopolistic market structure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>SWOC\nAnalysis<\/strong><\/h2>\n\n\n\n<p><strong>Strength:\n<\/strong>The tenacity of the Chemcon chemicals Ltd. banks\nupon their core products HMDS (Hexamethyldisilazane) and CMIC which are\npredominantly used in the pharmaceutical industry and the company claims to be\nthe leading producer of both speciality chemicals. The company has a vast\nmanufacturing facility which is catering more than ten countries and there no\nreliability over a single firm or country makes it a value bet. Moreover, the\nproduct portfolio of the company is not limited to producing chemicals for\npharmaceuticals industry; it has also established their footprints in oilfields\nindustry, silanes industry and contract manufacturing related to customizing\nchemicals. <\/p>\n\n\n\n<p><strong>Weakness:\n<\/strong>As a leading producer of speciality chemicals: the\ncompany will require funds to meet its capital expenditures for expansion and\nto fulfil their working capital requirements. The company will also require\nheavy spending upon R&amp;D infrastructure which could dampen their healthy\nbalance sheet. Any changes in the cost of inputs required for their core\nproducts could upset their supply chain. More the suppliers of their inputs are\nfrom China too and the recent issues between Indian and China are expected to\nlower their total productivity. The United Arab Emirates (UAE) contributes to\n26.43% of the total revenues and any import duty by the UAE government may\naffect the revenues of the company.<\/p>\n\n\n\n<p><strong>Opportunities:\n<\/strong>The recent import restriction on Chinese goods has\nincreased the investor\u2019s love of Indian speciality chemical companies. Major\ncustomers of the company are Hetero Labs Limited, Laurus Labs Ltd, Aurobindo\nPharma Ltd, Lantech Pharmaceuticals Ltd, Macleods Pharma Ltd and they are\nlikely to grow in numbers due to recent \u2018Make in India\u2019 initiative. Many\ncountries are avoiding trades with China which will force them to move to\nChemcon for their product. <\/p>\n\n\n\n<p><strong>Challenges:\n<\/strong>Keeping in mind the rising number of companies in\nthe field of speciality chemicals, the company could face some competition in\nfuture. For the expansion plans, the company will require to raise funds in\nfuture the company would require to look for economical acquisition cost\nalternatives. The company will be required to keep working on product\ndevelopment to remain leading manufacturer and distributor of the core\nproducts.<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 4,727<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"552\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">1    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Don\u2019t worry Computer Age Management Services Ltd. (CAMS), Chemcon Speciality Chemicals IPO is joining you on 21st September for subscription and keep active for tough [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/chemcom-ipo-to-open-on-sep-21-should-you-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":553,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2],"tags":[167],"class_list":["post-552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","tag-chemcom-ipo"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=552"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/552\/revisions"}],"predecessor-version":[{"id":554,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/552\/revisions\/554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/553"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}