Chemcon Speciality Chemicals Garners Over Rs 95 Cr From Anchor Investors

Chemcon Speciality Chemicals Ltd on Friday raised over Rs 95 crore from anchor investors ahead of its initial share sale that opens on Monday.

It has been finalized to allocate28,05,880equity shares to 13anchor investors at a price of Rs 340 apiece. At this price, the company garnered Rs 95.4 crore, Chemcon Speciality informed the stock exchanges.

IDFC Mutual Fund, ICICI Prudential Mutual Fund, IIFL, HSBC Global, Mirae Asset Mutual Fund, Canara HSBC Oriental Bank of Commerce Life Insurance, Tata Mutual Fund and Abakkus Asset Managers LLC are among the anchor investors who participated.

The leading manufacturer of speciality chemicals has fixed the price band at Rs 338-340 per share for its initial share sale, which will open for public subscription on September 21 and close on September 23.

The initial public offer (IPO) comprises fresh issuance of equity shares aggregating up to Rs 165 crore and an offer for sale of up to 45 lakh equity scrips by promoters.

At the upper end of the price band, the IPO will fetch Rs 318 crore.

The company intends to utilise the net proceeds from the fresh issue to meet capital expenditure for expansion of its manufacturing facility, fund working capital requirements and general corporate purposes.

The Vadodara-based company has long standing relationships with its key customers, including Laurus Labs Ltd, Aurobindo Pharma Ltd, Ind-Swift Laboratories Ltd.

It exports products to global markets covering the US, Germany, Italy, South Korea, Japan, the United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia.

Intensive Fiscal Services and Ambit Capital are the book running lead managers to the issue.

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