Vadodara-based Chemcon Speciality Chemicals Ltd has filed draft papers with the Securities and Exchange Board of India to float an initial public offering.
The proposed IPO comprises an issue of fresh shares worth Rs 175 crore and a sale of 2.15 million shares each by promoter Kamalkumar Rajendra Aggarwal and promoter group individual Naresh Vijaykumar Goyal.
The total IPO size is estimated to be Rs 350 crore. It may result in about 24% stake dilution on a post-issue basis. This would value the company around Rs 1,450-1,500 crore, VCCircle estimates show.
Merchant bankers Intensive Fiscal Services and Ambit Capital are managing the share sale.
Chemcon makes speciality chemicals for the pharmaceutical and oilfield industries. It said in its draft red herring prospectus that it is the only manufacturer of hexamethyldisilazane (HMDS) and zinc bromide in India.
The company said it is the world’s eighth-largest maker of HMDS, a chemical compound used in the pharmaceutical and semiconductor industries. It is also the largest producer of chloromethyl isopropyl carbonate (CMIC) and calcium bromide in India. CMIC is a pharmaceutical intermediate while calcium bromide is used in the oilfields industry.
