The speciality marine chemicals player debuted at a premium of 10% at Rs 450 on National Stock Exchange (NSE) and at Rs 449 on BSE as against the issue price of Rs 407 apiece.
Post listing, the scrip extended its gains to another 6% to hit intraday high of Rs 476.05 on BSE, taking the entire gains to 17% compared to the issue price.
The majority of the analysts remain positive on the counter in the longer run suggesting investors to stay put as they see more steam left in the shares. However, a few suggested booking profits after the listing pop.
Arafat Saiyed, Senior Research Analyst at
Securities suggested investors to stay invested in the counter for a longer run. He remains positive on the stock.
Manoj Dalmia, Founder and Director, Proficient Equities said the issue was reasonably priced. Investors can take a defensive approach by adding the stock above Rs 480, Dalmia advised.
The company’s Rs 1,462 crore IPO was sold in the range of Rs 386-407 per share and received a solid investor response. The IPO received bids of over 32.23 times between November 9-11.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 48.91 times while the one reserved for non-institutional investors (NIIs) and retailers was subscribed 14.9 times and 9.96 times, respectively.
Pravesh Gour, Senior Technical Analyst,
advised investors to lock in listing gains. “Those who applied for listing gains can keep a stop loss of Rs 433 in place,” he said.
Archean Chemical Industries is India’s largest exporter of bromine and industrial salt in the fiscal year 2020-21. The company is the leading speciality marine chemical manufacturer in India.
It is the largest exporter of bromine in India and its manufacturing facility is located in Gujarat. They have 18 global customers in 13 countries and 24 domestic customers.
Ravi Singhal, CEO at GCL Securities said the company has reported impressive Q1FY23 results that augur well for Archean. Investors are advised to maintain a stop loss at Rs 440 and wait for further upside, Singhal added.
“Those who have a medium to long-term perspective can hold the stock maintaining a stop loss at Rs 410,” he said. In the medium term, Archean Chemical share price may go up to Rs 550-570, whereas in the long term, say the next one year, it may go up to Rs 640.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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