Chemcon
Mainboard₹318 Cr issue
+114.99%
Listing gain over issue price
Issue size
₹318 Cr
1 lot at cut-off
₹14,960
Lot size
44shares
Open
21 Sep 2020
Close
23 Sep 2020
Allotment
28 Sep 2020
Listing
01 Oct 2020
Listing performance
Issue price
₹340
Listed at
₹730.95
Listing-day close
₹584.80
Latest price
₹197.61
Close on 23 Oct 2026
Listing gain
+114.99%
Return since issue
-41.88%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Sep 2020 – 23 Sep 2020
- Listing date
- 01 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹340 per share
- Lot size
- 44 shares
- Total issue size
- ₹318 Cr
- Promoter holding
- 100.00% → 74.47% pre-issue → post-issue
- ISIN
- INE03YM01018
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Ambit Pvt.Ltd.
- Registered office
- Block Number 355, Manjusar Kunpad Road, Manjusar Village, Taluka Savli, Vadodara 391775, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 28,05,880 | — | — |
Application size
Minimum 44 shares per lot, in multiples, at ₹340
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 44 | ₹14,960 |
| Retail (max) | 13 | 572 | ₹1,94,480 |
| S-HNI (min) | 14 | 616 | ₹2,09,440 |
| S-HNI (max) | 66 | 2,904 | ₹9,87,360 |
| B-HNI (min) | 67 | 2,948 | ₹10,02,320 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
28,05,880
Anchor portion
₹95.40 Cr
at ₹340 per share
Valuation and performance
Valuation at offer price
₹340 per share
| Metric | Pre-issue | Post-issue |
|---|
About Chemcon
Chemcon Speciality Chemicals Limited, originally incorporated as Gujarat Quinone Private Limited in 1988 and later acquired by its current Promoters in 2004, manufactures and sells specialized chemicals. Following a merger with Chemcon Engineers Private Limited in 2004, the company was renamed to reflect its focus on specialty chemicals. The company operates a single centralized manufacturing facility in Manjusar, Gujarat, with seven operational plants dedicated to specific products. It serves domestic and international customers across pharmaceutical and oilfield industries. In fiscal 2020, Pharmaceutical Chemicals contributed 63.75% of revenue while Oilwell Completion Chemicals contributed 33.47%. The company was the only manufacturer of HMDS in India and third largest worldwide; the largest manufacturer of CMIC in India and second largest worldwide as of 2019.
Company Analysis
from RHPChemcon Speciality Chemicals Limited is a manufacturer of specialized chemicals, specifically pharmaceutical intermediates (HMDS, CMIC) and oilwell completion chemicals (calcium bromide, zinc bromide, sodium bromide), serving pharmaceutical and oil & gas industries globally.
Chemcon Speciality Chemicals Limited, originally incorporated as Gujarat Quinone Private Limited in 1988 and later acquired by its current Promoters in 2004, manufactures and sells specialized chemicals. Following a merger with Chemcon Engineers Private Limited in 2004, the company was renamed to reflect its focus on specialty chemicals. The company operates a single centralized manufacturing facility in Manjusar, Gujarat, with seven operational plants dedicated to specific products. It serves domestic and international customers across pharmaceutical and oilfield industries. In fiscal 2020, Pharmaceutical Chemicals contributed 63.75% of revenue while Oilwell Completion Chemicals contributed 33.47%. The company was the only manufacturer of HMDS in India and third largest worldwide; the largest manufacturer of CMIC in India and second largest worldwide as of 2019.
PharmaceuticalsOilfield/Oil & Gas ExplorationSpecialty Chemicals
Objects of the Issue
- Capital expenditure towards expansion of the Manufacturing Facility ₹410.33 million p.21
- To meet working capital requirements ₹900.00 million p.21
- General corporate purposes ₹187.55 million p.21
- Capital expenditure towards expansion of our Manufacturing Facility ₹410.33 million p.77
- To meet working capital requirements ₹900.00 million p.77
- General corporate purposes ₹187.55 million p.77
- Capital expenditure towards expansion of Manufacturing Facility p.142
Issue Structure
- Total Issue
- ₹3,180 million (9,352,941 Equity Shares at ₹340 per share)
- Fresh Issue
- ₹1,650 million (4,852,941 Equity Shares)
- Offer for Sale
- ₹1,530 million (4,500,000 Equity Shares: 2,250,000 by Kamalkumar Rajendra Aggarwal and 2,250,000 by Naresh Vijaykumar Goyal)
- Price Band
- ₹338 - ₹340 per Equity Share
- Lot Size
- 44 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells specialized chemicals: Pharmaceutical Chemicals (HMDS, CMIC, 4CBC) primarily used in manufacture of pharmaceuticals and related products, and Oilwell Completion Chemicals (Calcium Bromide, Zinc Bromide, Sodium Bromide) used as completion fluids in oil and gas exploration. Revenue is generated through direct sales to customers, with 39.78% of fiscal 2020 revenue from exports (including Deemed Exports) and 60.22% from domestic sales.
Business Segments
Manufactures and sells HMDS (Hexamethyldisilazane), CMIC (Chloromethyl Isopropyl Carbonate), 4CBC (4-chlorobutyryl chloride) and ancillary chemicals primarily used in manufacture of pharmaceuticals and related products including antibiotics, anti-viral drugs, and HIV treatments.
Manufactures and sells Calcium Bromide (solution and powder), Zinc Bromide (solution), and Sodium Bromide (solution and powder) used as completion fluids in oil and gas exploration, development and production activities.
Manufactures specialty chemicals used as intermediates in the production of active pharmaceutical ingredients (APIs), including HMDS (Hexamethyldisilazane), CMIC (Chloromethyl Isopropyl Carbonate), and other chemicals used in antibiotics and antiviral drug manufacturing
Manufactures drilling and completion fluids including clear brine fluids used in oil and gas exploration and production activities
Manufacture of HMDS (hexamethyldisilazane), CMIC (cyclohexyl methyl chloroformate), and 4 CBC used as intermediates in pharmaceutical manufacturing for antiviral, antibiotic, and antitumor drugs
Manufacture of inorganic bromides (Calcium Bromide, Sodium Bromide, Zinc Bromide) in solution and powder forms used as completion fluids in oil and gas well drilling and completion operations
The company operates in a single segment of manufacturing of specialised chemicals, taking into account the risks and returns, the organization structure and the internal reporting systems. The segment manufactures pharmaceutical intermediates (HMDS, CMIC), silanes, and oilfield chemicals (completion fluids).
Manufactures HMDS (hexamethyldisilazane) and CMIC (used as key intermediate for antibiotics and anti-viral drugs), primarily for pharmaceutical industry
Manufactures inorganic bromides including Calcium Bromide, Zinc Bromide and Sodium Bromide used as completion fluids in oilfield operations
SWOT Analysis
Strengths
- • Only HMDS manufacturer in India; third largest globally by production(p.20)
- • Largest CMIC manufacturer in India; second largest globally by production and capacity(p.20)
- • Only Zinc Bromide manufacturer and largest Calcium Bromide manufacturer in India(p.42)
- • Centralized, integrated manufacturing facility with versatile production capability(p.31)
- • Long-term customer relationships supporting business stability(p.29)
- • Leading manufacturer of Pharmaceutical Chemicals globally and Oilwell Completion Chemicals in India(p.88)
- • Diversified customer base with long-standing relationships(p.88)
- • Specialty chemicals industry has high entry barriers(p.88)
- • Consistent financial performance with strong financial position(p.88)
- • Dedicated manufacturing facility with separate plants for each product(p.88)
- • Experienced senior management team(p.88)
- • Market-leading position as sole HMDS manufacturer in India and 3rd globally(p.138)
- • Largest CMIC manufacturer in India with 26.2% global capacity share(p.138)
- • Only Zinc Bromide and largest Calcium Bromide manufacturer in India(p.140)
- • Diversified customer base with long-standing relationships(p.140)
- • High barriers to entry due to complex chemistry and lengthy customer qualification periods(p.140)
- • Experienced management team with deep industry expertise(p.142)
- • Strategic geographic location in pharmaceutical and chemical hub of Gujarat(p.156)
- • Established governance structure with independent oversight committees(p.176)
- • Robust financial reporting and audit oversight mechanisms(p.176)
- • Strong revenue growth trajectory(p.201)
- • Improved profitability with growing profit margins(p.201)
- • Diversified revenue streams across domestic and export markets(p.226)
- • Only HMDS manufacturer in India; third largest worldwide producer(p.245)
- • Largest CMIC manufacturer in India; second largest globally(p.245)
- • Only Zinc Bromide manufacturer and largest Calcium Bromide producer in India(p.245)
- • ISO certified manufacturing with dedicated plants for each product line(p.245)
- • Strong revenue growth with CAGR of 28.93% between FY2018-2020(p.246)
- • Strong profit growth with PAT CAGR of 36.08% between FY2018-2020(p.246)
- • Significant export presence with 39.78% revenue from exports(p.245)
Weaknesses
- • Heavy dependence on small number of customers; top 5 customers represent 59.35% of revenue(p.29)
- • Limited product portfolio concentrated on two main segments(p.28)
- • High concentration of manufacturing in single location subject to operational risks(p.31)
- • Dependence on few raw material suppliers; top 5 suppliers constitute 43.61% of purchases(p.32)
- • Significant dependence on Chinese suppliers for key raw materials(p.33)
- • Promoter group member facing criminal conviction and appeal pending(p.26)
- • Promoters and promoter group members have filed SEBI settlement application for past non-compliances(p.25)
- • Contingent liabilities including GST and Excise disputed demands totaling ₹2.69 million(p.38)
- • Limited financial flexibility due to shareholder approval requirement for variation in use of proceeds(p.49)
- • No proceeds received from Offer for Sale component of IPO(p.49)
- • Majority orders for expansion project equipment not yet placed(p.78)
- • Difficulty enforcing foreign judgments and service of process outside India(p.50)
- • High dependence on top customers - top 5 customers contribute 59.35% of revenue(p.140)
- • Significant reliance on imported raw materials - 40.19% of raw material costs in FY2020(p.150)
- • Plant facility damaged by fire in Fiscal 2018; hi-purity HMDS and 2,5 DHT yet to achieve commercial production(p.145)
- • Single manufacturing location concentrating operational risk(p.143)
- • High attrition rate among workforce - 17.97% in Fiscal 2020(p.157)
- • High dependence on limited customer base(p.235)
- • Significant working capital concentration in current liabilities(p.200)
- • Reliance on group company transactions and related party dealings(p.232)
- • High leverage in group companies affecting financial stability(p.191)
- • High dependence on few key pharmaceutical customers(p.245)
- • Significant reliance on raw material imports from China(p.247)
- • Low capacity utilisation in Oilwell Completion Chemicals post-COVID(p.249)
- • CMIC capacity underutilisation at 44.88% in FY2020(p.248)
- • Substantial operating expenses and finance costs at 1.76% of total income(p.265)
Opportunities
- • Planned expansion of manufacturing facility using IPO proceeds(p.20)
- • Growing pharmaceutical intermediates market at 4% CAGR through 2023(p.20)
- • Expanding clear brine fluids market growing at above 5% CAGR through 2023(p.20)
- • New product development including 4 CBC and 2,5 DHT commercialization(p.28)
- • Working capital financing capability to support growth(p.20)
- • Strong export market presence in 39.78% of revenue from operations(p.34)
- • Expansion of manufacturing capacity with two new plants and one laboratory(p.78)
- • India HMDS market growing at 10.6% CAGR with import substitution potential(p.110)
- • Export opportunities to China's customer base due to environmental regulations in China(p.110)
- • Growing global pharmaceutical intermediates market(p.99)
- • India government initiatives supporting bulk drugs parks and generic medication schemes(p.99)
- • India as net importer of HMDS with 10.6% CAGR growth expected (2019-2023)(p.139)
- • Frost & Sullivan estimates 15-20% CAGR growth opportunity for Chemcon in HMDS (2019-2023)(p.139)
- • CMIC market growing at 11% CAGR with opportunity to grow at >25% CAGR by substituting Chinese imports(p.139)
- • US-China trade dispute creating export opportunities for Indian HMDS suppliers(p.140)
- • Expansion of manufacturing capacity by 251 KL to enable economies of scale(p.142)
- • Environmental clearance for 44 products and 10x increase in production capacity(p.143)
- • New product development targeting pharmaceuticals, semiconductors and rubber industries(p.143)
- • Global CMIC demand growing at 10.8% CAGR through 2023 driven by HIV/HBV treatment scale-up(p.118)
- • Planned capacity expansion through capital work in progress(p.200)
- • Strategic growth in export markets(p.226)
- • Expansion of specialized chemicals portfolio and job work services(p.226)
- • IPO funding to strengthen balance sheet and reduce debt(p.204)
- • Global increase in HMDS prices supporting margins(p.249)
- • Planned capacity expansion with two new plants P8 and P9(p.248)
- • Increased antibiotics consumption from COVID-19 treatment boosting demand(p.250)
- • Growing semiconductor industry demand for HMDS(p.250)
- • Export revenue growth potential with CAGR of 17.57% between FY2018-2020(p.245)
- • Government support for local HMDS manufacturing reducing import dependence(p.250)
Threats
- • Oilwell Completion Chemicals demand dependent on volatile oil and gas exploration activity(p.29)
- • COVID-19 pandemic severely impacting oil exploration demand and global supply chains(p.30)
- • Commodity price volatility for key raw materials (TMCS, MCF) affecting margins(p.32)
- • Global price volatility of HMDS (ranging from $3.5 to $18.5 per kg) impacting profitability(p.33)
- • Competition from international manufacturers with greater resources and lower costs(p.42)
- • Risk of substitute products replacing oilwell completion chemicals and pharmaceutical intermediates(p.28)
- • Exchange rate fluctuation risk with 39.78% revenue from exports and 40.19% raw material imports(p.36)
- • Regulatory changes in pharmaceutical and chemical industries affecting product demand(p.33)
- • GST implementation uncertainty and potential compliance burden(p.46)
- • Geopolitical risks from dependence on Chinese raw material suppliers(p.32)
- • No assurance of continued export benefits from Government of India(p.39)
- • Post-IPO equity share price volatility and uncertain trading market(p.49)
- • Complex Indian tax regime for shareholders including capital gains and STT(p.49)
- • Currency exchange rate fluctuation risk for foreign investors(p.52)
- • Potential adverse impact from India's sovereign debt rating downgrade(p.52)
- • Risk of delays and cost overruns in expansion project due to equipment supply(p.33)
- • Global capacity utilization at only 57% in 2019 for CMIC; significant excess capacity exists(p.117)
- • Volatile raw material prices; bromine prices increased 50% (2015-2019)(p.129)
- • Oil well completion chemicals demand highly dependent on oil prices and drilling rig activity(p.129)
- • COVID-19 severely impacted oilwell completion chemicals demand; manufacturing still sub-optimal(p.139)
- • Competition from large global players in Oilwell Completion Chemicals (ICL, Albemarle, LANXESS, TETRA)(p.123)
- • Competition from major Chinese HMDS producers (Xinyaqiang, Dow Chemical, Shin-Etsu, Wacker, Evonik)(p.158)
- • Volatility in raw material costs with imported component exposure(p.226)
- • Foreign exchange risk from significant export exposure(p.234)
- • Interest rate sensitivity on variable rate borrowings(p.235)
- • Regulatory compliance burden and litigation risks(p.227)
- • Concentration of fixed assets and operational risk from single location(p.200)
- • Extreme volatility in raw material prices, particularly TMCS and MCF(p.247)
- • Supply chain disruptions and geo-political risks from China dependence(p.247)
- • Currency exchange rate fluctuations affecting export profitability(p.249)
- • Global oil market collapse reducing Oilwell Completion Chemicals demand(p.250)
- • Pharmaceutical chemicals price volatility and competitive global pricing pressure(p.249)
- • Fire damage risk with insurance claim still pending(p.236)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kamalkumar Rajendra Aggarwal | Promoter | 37.53% | — |
| Navdeep Naresh Goyal | Promoter | 7.47% | — |
| Shubharangana Goyal | Promoter | 6.23% | — |
| Naresh Vijaykumar Goyal | Promoter Group | 16.63% | — |
| Rajveer Aggarwal | Promoter Group | 7.97% | — |
| Minal Kamal Aggarwal | Promoter Group | 4.53% | — |
| Kamalkumar Rajendra Aggarwal | Promoter | 37.53% | 26.42% |
| Navdeep Naresh Goyal and Shubharangana Goyal | Promoter Group (joint holding) | 19.62% | 17.02% |
| Navdeep Naresh Goyal | Promoter | 7.47% | 6.48% |
| Shubharangana Goyal | Promoter Group | 6.23% | 5.40% |
| Naresh Vijaykumar Goyal | Promoter Group | 16.63% | 8.29% |
| Minal Kamal Aggarwal | Promoter Group | 4.53% | 3.93% |
| Rajveer Aggarwal | Promoter Group | 7.97% | 6.91% |
| Kamalkumar Rajendra Aggarwal | Promoter | — | — |
| Naresh Vijaykumar Goyal | Promoter Group | — | — |
| Kamalkumar Rajendra Aggarwal | Promoter | 37.53% | — |
| Navdeep Naresh Goyal | Promoter | 7.47% | — |
| Shubharangana Goyal | Promoter | 6.23% | — |
| Kamalkumar Rajendra Aggarwal | Promoter | — | — |
| Naresh Vijaykumar Goyal | Promoter | — | — |
| Shubharangana Goyal | Promoter | — | — |
| Navdeep Naresh Goyal | Promoter | — | — |
| Kamalkumar Rajendra Aggarwal | Selling Shareholder | — | — |
| Naresh Vijaykumar Goyal | Selling Shareholder | — | — |
Leadership
Kamalkumar Rajendra Aggarwal · Promoter
Navdeep Naresh Goyal · Promoter
Shubharangana Goyal · Promoter
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Chemcon IPO FAQs
What is the lot size of Chemcon IPO?
The minimum lot size of Chemcon IPO is 44 shares. One lot costs ₹14,960 at the cut-off price.
When does Chemcon IPO open and close?
Chemcon IPO opened for subscription on 21 Sep 2020 and closed on 23 Sep 2020.
What is the listing date of Chemcon IPO?
Chemcon IPO listed on 01 Oct 2020.