Chemcon IPO Details

Issue Open Sep 21, 2020
Issue Close Sep 23, 2020
IPO Price ₹340
Face Value ₹10
IPO Size ₹318.00 Cr
Listing At BSE, NSE
IPO Lot Size 44
wpe468.jpg (3405 bytes) This is a public announcement foe information purposes only and is not a prospectus announcement. This does not constitute an invitation or Issue to acquire, purchase or subscribe to securities.
Not for publication or distribution, directly or indirectly, outside India.
CHEMCON SPECIALITY CHEMICALS LIMITED

Our Company was originally incorporated as Gujarat Quinone Private Limited at Vadodara, Gujarat, India, as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated December 15,1988 issued by the RoC. Our Promoters and Promoter Group completed the acquisition of 100% of the Equity Share capital of our Company in 2004 from the shareholders of our Company at the time. Chemcon Engineers Private Limited ' ("CEPL") was incorporated at Vadodara, Gujarat, India as a private limited company under the Companies Act, 1956. pursuant to a certificate of incorporation dated April 30,1996 issued by the RoC CEPL, a company largely owned and promoted by our Promoters and Promoter Group, merged into our Company pursuant to an order of the High Court of Gujarat dated May 6,2004 approving the Scheme of Amalgamation between CEPL and our Company. Thereafter, to reflect the nature of activities of our Company consequent to the Scheme of Amalgamation, the name of our Company was changed to ‘Chemcon Speciality Chemicals Private Limited' pursuant to the approval of our Shareholders at an extra-ordinary general meeting held on July 24, 2004 and the fresh certificate of incorporation on change of name issued by the RoC on July 27,2004. Subsequently, our Company was converted into a public limited company pursuant to the approval of our Shareholders at an extra-ordinary general meeting held on November 28, 2018. Consequently, the name of our Company was changed to "Chemcon Speciality Chemicals Limited'' and a Fresh certificate of incorporation consequent upon conversion to public limited company was issued by the RoC on Apnl 10, 2019. For further details relating to the changes in the registered office and name of our Company, see ''History and Certain Corporate Matters'' on page 162 of the Prospectus dated September 24, 2020, filed by the Company ("Prospectus").

Registered Office: Block Number 355, Manjusar Kunpad Road, Manjusar Village, Taluka Savli, Vadodara 391 775, Gujarat Tel: +91 98795 64107;
Corporate Office: 9th Floor, Onyx Business Centre. Akshar Chowk, Old Padra Road. Vadodara 390 020, Gujarat Tel: +91 265 298 1195; Contact Person: Shahilkumar Maheshbhai Kapatel. Company Secretary and Compliance Officer, Tel: + 91 265 298 3754;
E-mail: investor.relations@cscpl.com;  Website: www.cscpl.com; Corporate Identity Number: U24231GJ1988PLC0116522
OUR PROMOTERS: KAMALKUMAR RAJENDRA AGGARWAL, NAVDEEP NARESH GOYALAND SHUBHARANGANA GOYAL
Our Company has filed the Prospectus with the RoC, and the Equity Shares are proposed to be listed on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE". together with BSE. the "Stock Exchanges"), and trading is expected to commence on or about October 1, 2020.
BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 93,52,941 EQUITY SHARES OF FACE VALUE OF Rs 10 EACH ("EQUITY SHARES") OF CHEMCON SPECIALITY CHEMICALS LIMITED ("OUR COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF Rs 340 PER EQUITY SHARE (INCLUDING A PREMIUM OF Rs 330 PER EQUITY SHARE) ("ISSUE PRICE") AGGREGATING TO Rs 3,180 MILLION. THE ISSUE COMPRISED OF A FRESH ISSUE OF 48,52,941 EQUITY SHARES AGGREGATING TO Rs 1,650 MILLION ("FRESH ISSUE") AND AN OFFER FOR SALE OF 4,500.000 EQUITY SHARES AGGREGATING TO Rs 1,530 MILLION, COMPRISING 2,250,000 EQUITY SHARES BY KAMALKUMAR RAJENDRA AGGARWAL AGGREGATING TO Rs 765 MILLION AND 2,250,000 EQUITY SHARES BY NARESH VIJAYKUMAR GOYAL AGGREGATING TO Rs 765 MILLION (TOGETHER, THE "SELLING SHAREHOLDERS") (THE "OFFER FOR SALE", AND TOGETHER WITH THE FRESH ISSUE, THE "ISSUE"). THE ISSUE CONSTITUTED 25.53% OF OUR POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

QIB Category: Not more than 50% of the Issue
Retail Category: Not less than 35% of the Issue
Non- Institutional Category: Not less than 15% of the Issue
ISSUE PRICE: Rs 340 PER EQUITY SHARE OF FACE VALUE OF Rs 10 EACH
THE ISSUE PRICE IS 34 TIMES OF THE FACE VALUE OF THE EQUITY SHARES
ANCHOR INVESTOR ISSUE PRICE: Rs 340 PER EQUITY SHARE

Risks to Investors

• The two Book Running Lead Managers associated with the Issue have not handled public issues in the past three years.
• The Price/Earnings ("PE") ratio based on diluted EPS for Fiscal 2020 for the Issuer at the upper end of the Price Band is as high as 22.12. As compared to the average industry peer group PE ratio of 31.30.
• Average cost of acquisition of Equity Shares for the Selling Shareholders namely Kamalkumar Rajendra Aggarwal and Naresh Vijaykumar Goyal is Rs 0.33 per Equity Share and Rs 0.57 per Equity Share respectively and the Issue Price at the upper end of the Price Band is Rs 340 per Equity Share.
• Weighted Average Return on Net Worth for Fiscals 2020, 2019 and 2018 is 40.30%.

BID/ISSUE PERIOD

BID/ISSUE OPENED ON SEPTEMBER 21, 2020
BID/ISSUE CLOSED ON SEPTEMBER 23, 2020

The Anchor Investor Bidding Date opened and closed on one (1) Working Day prior to the Bid/lssue Opening Date, i.e. September 18, 2020.

This Issue was made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules. 1957. as amended ("SCRR") read with Regulation 31 of the SEBIICDR Regulations. This Issue was made through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Issue was available for allocation on a proportionate basis to Qualified institutional Buyers ("QIBs") (the "QIB Portion"). provided that our Company and the Selling Shareholders in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the "Anchor Investor Portion"). One-third of the Anchor Investor Portion was reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion was available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price, Further, not less than 15% of the Issue was available for allocation on a proportionate basis to Non-lnstitutional Bidders and not less than 35% of the Issue was available for allocation to Retail Individual Bidders m accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Issue Price. All Bidders, other than Anchor Investors, were mandatorily required to participate in the Issue through the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective ASBA Account, which were blocked by the Self Certified Syndicate Banks ("SCSBs") Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA Process For details, see ‘Issue Procedure' beginning on page 296 of the Prospectus.

The Issue received 2,077,350 applications for 957,490,820 Equity Shares resulting in 102.37 times subscription as disclosed in Prospectus. The details of the applications received m the Issue from Retail Individual Investors, Non-lnstitutional Investors, Qualified Institutional Investors and Anchor Investors are as under (prior to technical rejections):

Sr. No. Category No. of Applications applied No. of Equity Shares Shares Reserved as per Prospectus No. of times Subscribed Amount (Rs)
A Retail Individual Investors 2,072,380 123,238,852 3,273,530 37.65 41,918,745,024
B Non-lnstitutional Investors 4,862 625,583,508 1,402,942 445.91 212,698,314,488
C Qualified Institutional Investors (Excluding Anchors) 92 204,815,248 1,870,589 109.49 69,637,184,320
D Anchor Investors 16 3,853,212 2,805,880 1.37 1,310,092,080
  Total 2,077,350 957,490,820 9,352,941 102.37 325,564,335,912

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/lssue Closing Date at different Bid prices are as under.

Sr. No Bid Price No. of Equity Shares % to Total Cumulative Total % Cumulative Total
1 338 1,523,148 0.16 1,523,148 0.16
2 339 1,003,816 0.10 2,526,964 026
3 340 863,255,184 88 81 865,782,148 89.07
4 CUTOFF 106,217,980 10.93 972,000,128 100.00
  TOTAL 972,000,128 100.00    

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on September 28,2020

A. Allotment to Retail Individual Investors (After Technical Rejections)

The Basis of Allotment to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs 340 per Equity Share, was finalized m consultation with BSE. This category has been subscribed to the extent of 35.79 times The total number of Equity Shares Allotted in Retail Category is 3,273,530 Equity Shares to 74,398 successful Bidders. The category-wise details of the Basis of Allotment are as under:

Sr. No. Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares allotted per Bidder Ratio Total No. of Equity Shares Allotted
1 44 1,769,347 89.78 77,851,268 66.45 44 2:53 2,938,936
2 88 96,993 4.92 8,535,384 7.29 44 2:53 161,084
3 132 31,683 1.61 4,182,156 3.57 44 2:53 52,624
4 176 13,332 0.68 2,346,432 2.00 44 2:53 22,132
5 220 12,894 0.65 2,836,680 2.42 44 2:53 21,428
6 264 6,627 0.34 1,749,528 1.49 44 2:53 11,000
7 308 6,079 0.31 1,872,332 1.60 44 2.53 10,076
8 352 2,015 0.10 709,280 0.61 44 2:53 3,344
9 3% 1,221 0.06 483,516 0.41 44 2:53 2,024
10 440 5,729 0.29 2,520,760 2.15 44 2:53 9,504
11 484 1,071 0.05 518,364 0.44 44 2:53 1,760
12 528 1,801 0.09 950,928 0.81 44 2:53 2,992
13 572 22,031 1.12 12,601,732 10.76 44 2:53 36,608
14   7604 Allottees from Serial no 2 to 13 Additional 1(one) share 18:7604 18
  Total

1,970,823 100.00

117,158,360 100.00     3,273,530

B. Allotment to Non Institutional Investors (After Technical Rejections)

The Basis of Allotment to the Non-lnstitutional Investors, who have bid at the Issue Price of Rs 340 per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 445.47 times The total number of Equity Shares allotted in this category is 1,402,942 Equity Shares to 1,186 successful applicants. The category-wise details of the Basis of Allotment are asunder: (Sample)

Sr. No. Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares allotted per Bidder Ratio Total No. of Equity Shares Allotted
1 616 1414 30.13 871,024 0.14 44 22:707 1,936
2 660 288 6.14 190,080 0.03 44 1:32 396
3 704 91 1.94 64,064 0.01 44 3:91 132
4 748 66 1.41 49,368 0.01 44 1:22 132
5 792 50 1.07 39,600 0.01 44 1:25 88
6 147,048 23 049 3,382,104 0.54 330 1:1 7,590
7 294,096 23 0.49 6,764,208 1.08 660 1:1 15,180
8 441,144 9 0.19 3,970,296 0.64 990 1:1 8,910
9 588,192 7 0.15 4,117,344 0.66 1,320 1:1 9,240
10 735,284 15 032 11,029,260 1.76 1,650 1:1 24,750
11 735,328 16 0.34 11,765,248 1.88 1,650 1:1 26,400
12 735,548 5 0.11 3,677,740 0.59 1,651 1:1 8,255
13 882,332 9 0.19 7,940,988 1.27 1,980 1:1 17,820
14 1,029,380 6 0.13 6,176,280 0.99 2,310 1:1 13,860
15 1,176,428 8 0.17 9,411,424 1.51 2,639 1:1 21,112
16 1,323,520 3 0.06 3,970,560 0.64 2,970 1:1 8,910
17 1,470,460 3 0.06 4,411,440 0.71 3,300 1:1 9,900
18 1,470,568 51 1.09 74,998,968 12.00 3,300 1:1 168,300
19 1,477,960 3 0.06 4,433,880 0.71 3,317 1:1 9,951
20 1,764,664 6 0.13 10,587,984 1.69 3,960 1:1 23,760
21 2,058,804 5 0.11 10,294,020 1.65 4,621 1:1 23,105
22 2,205,852 11 023 24,264,372 3.88 4,951 1:1 54,461
23 2,647,040 2 0.04 5,294,080 0.85 5,941 1:1 11,882
24 2,941,136 23 0.49 67,646,128 10.82 6,601 1:1 151,823
25 3,264,668 1 0.02 3,264,668 0.52 7,328 1:1 7,328
26 3,382,280 1 0.02 3,382,280 0.54 7,592 1:1 7,592
27 3,647,028 2 0.04 7,294,056 1.17 8,186 1:1 16,372
28 3,676,464 12 0.26 44,117,568 7.06 8,252 1:1 99,024
29 3,718,528 1 0.02 3,718,528 0.59 8,346 1:1 8,346
30 4,117,608 3 0.06 12,352,824 1.98 9,241 1:1 27,723
31 4,402,420 6 0.13 26,414,520 4.23 9,881 1:1 59,286
32 4,411,748 34 0.72 149,999,432 24.00 9,902 1:1 336,668
33 4,647,016 1 0.02 4,647,016 0.74 10,430 1:1 10,430
34 4,676,452 2 0.04 9,352,904 1.50 10,496 1:1 20,992

C. Allotment to QIBs (excluding Anchor Investors) (After Technical Rejections)

Allotment to QIBs. who have bid at the Issue Price of Rs 340 per Equity Share, has been done on a proportionate basis in consultation with BSE. This category has been subscribed to the extent of 109 49 times. As per the SEBIICDR Regulations. Mutual Funds were allotted 5% of the Equity Shares of QIB Category (excluding Anchor Investor Portion) available, i.e. 93,530 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares, i.e. 1,777,059 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 1,870,589 Equity Shares, which were allotted to 92 successful Bidders. The category-wise details of the Basis of Allotment are as under.

Category FIS/BANKS MF'S IC'S NBFC'S AIF FPC OTHERS TOTAL
Allotment 636,208 190,058 6,893 164,057 93,181 386,059 394,133 1,870,589

D. Allotment to Anchor Investors (After Technical Rejections)

The Company and Selling Shareholders m consultation with the BRLMs. have allotted 2,805,880 Equity Shares to 13 Anchor Investors (who have applied through 16 applications) at the Anchor Investor Issue Price of Rs 340 per Equity Share in accordance with the SEBIICOR Regulations. This represents upto 60% of the QIB Portion.

SThe IPO Committee at its meeting held on September 28, 2020 has approved the basis of allotment of Equity Shares, prepared and finalised in consultation with the Designated Stock Exchange, being BSE, and has Allotted the Equity Shares to various successful Bidders. The Allotment Advice Cum Refund Intimation will be dispatched through ordinary post to the address of the Investors his register with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Issue Account on September 28, 2020 and the payments to non-syndicate brokers have been issued on September 29, 2020. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares allotted to the allottees have been uploaded on September 29, 2020 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is in process of obtaining the listing and trading approval from BSE and NSE and trading is expected to commence on or about October 01, 2020

Note All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Issue. Link Intime India Private Limited at www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ sole Bidder, serial number of the ASBA Form, number of Equity Shares bid for. name of the member of the Syndicate, place where the bid was submitted and payment details at the address given below:

wpe469.jpg (1640 bytes)
Link Intime India Private Limited
C-101. First Floor, 247 Park, Lai Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083, Tel: +91 22 4918 6200
Email: chemcon.ipo@linkintime.co.in. Investor grievance Email: chemcon.ipo@bnkintime.co.in; Website: www.linluntime.co.in
Contact Person: Shanti Gopalkrishnan; SEBI Registration No.: INR000004058

BOOK RUNNING LEAD MANAGERS

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Intensive Fiscal Services Private Limited Ambit Capital Private Limited
Address: 914 9th Floor, Raheja Chambers, Free Press Address: Ambit House 449, Senapati Bapat Marg
Journal Marg, Nariman Point, Mumbai 400 021 Lower Parel, Mumbai 400 013; Tel: +91 22 3043 3000
Tel: +91 22 2287 0443/44/45 E-mail: cbemcon ipo@ambit.co
E-mail: chemcon.ipo@intensivefiscal.com Investor grievance E-mail:
Investor Grievance E-mail: ipo@mtensiveliscal.com investorgnevance.acpl@ambit.com
Website: www.intensxvefiscal.com Website: www ambrt.co
Contact Porson: Harish Khajanchi/Anand Rawal Contact Porson: Gaurav Rana'Sandeep Sharma
SEBI Registration No.: INM000011112 SEBI Registration No.: INM000012379
For CHEMCON SPECIALITY CHEMICALS LIMITED
On behalf of the Board of Directors
Place: Vadodara Sd/-
Date: September 29, 2020 Company Secretary & Compliance Officer

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF CHEMCON SPECIALITY CHEMICALS LIMITED.

CHEMCON SPECIALITY CHEMICALS LIMITED: has filed the Prospectus dated September 24,2020 with the RoC, Gujarat, Dadra and Nagar Haveli at Ahmedabad. The Prospectus is available on the website of the SEBI at www.sebi.gov.in, on the respective websites of the BSE and the NSE, at www.bseindia.com and www.nseindia.com as well as on the websites of the book running lead managers. Intensive Fiscal Services Private Limited and Ambit Capital Private Limited at www.mtensiveftscal.com and www.ambit.co respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see ''Risk Factors'' on page 23 of the Prospectus.

This announcement has been prepared for publication in India and may not be released in the United States. The Equity Shares have not been and will not be registered, listed or otherwise qualified m any other jurisdiction outside India and may not be offered or sold in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. The Equity Shares have not been registered under the US Securities Act 1933 ("U.S. Securities Act") or any state securities laws in the United States and may not be offered or sold in United States, except pursuant to exemption from, or in a transaction not subject to. the registration requirements of the U.S. Securities Act and in accordance with any applicable United States state securities laws.



Chemcon IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in Chemcon IPO?

    Check the basis of allotment document above to know about how the shares are allocated in Chemcon IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is Chemcon IPO basis of allotment status?

    The Chemcon IPO basis of allotment (published above) tells you how shares are allocated to you in Chemcon IPO and category wise demand of IPO share.

    Visit the Chemcon IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is Chemcon IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in Chemcon IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

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