Archean Chemical Industries — a Chennai-based manufacturer of chemicals — launched an IPO worth up to Rs 1,462 crore on Wednesday. The IPO — which includes fresh issuance of shares worth Rs 805 crore — secured a subscription of 30 percent on the first day of the bidding process.

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By 5 pm on Wednesday, the Archean Chem IPO received bids for 59.4 lakh shares as against the two crore shares on offer, according to provisional exchange data.

Out of the total issue, 75 percent is reserved for qualified institutional buyers, 15 percent for high net worth individuals and the remaining 10 percent for retail investors.

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The IPO will be available for subscription for two more trading days, till November 11.

Potential investors can bid for Archean Chem shares in a price band of 386-407 apiece in multiples of 36 under the IPO — which translates to Rs 13,896-14,652 per lot.

Should you subscribe to the Archean Chem IPO?

A number of brokerages recommend subscribing to the issue.

According to Reliance Securities, the Archean Chemical IPO values the company at a price-to-earnings multiple of 26.5 times its earnings for the year ended March 2022, which is at a discount to its peers.

"The company has a leading market position and it is undergoing continuous expansion in bromine and industrial salt. High entry barriers in the specialty

marine chemicals industry bodes well for the company," said the brokerage, which is positive on Archean's market leading position, established infrastructure, integrated production with cost efficiencies, consistent financial performance, high entry barriers for competitors, experienced management team and attractive valuation.

Archean Chemical Industries shares are likely to be listed on stock exchanges BSE and NSE on November 21.