By: ICN Bureau
Last updated : February 22, 2022 12:06 am
The proceeds from the Rs 800-crore issue will be used to redeem non-convertible debentures fully or partly.
Archean Chemical Industry has decided to file an Initial Public Offer (IO) of a fresh issue of Rs 1,000 crore and an offer-for-sale of up to 19.07 million shares by its existing shareholders and promoters.
The proceeds from the issue will be used to redeem non-convertible debentures fully or partly. As of December 2021, the amount outstanding under the borrowing arrangements entered by the firm was Rs 840 crore and interest accrued but not due was Rs 116.67 crore.
"We believe the redemption of the NCDs will reduce our outstanding indebtedness, deb servicing costs, improve our debt to equity ratio and enable utilisation of our internal accruals for further investment in our business growth and expansion. Additionally, we believe that the increased leverage capacity of our company will improve our ability to raise further resources in the future to fund our potential business development opportunities and plans to grow and expand our business," the draft red herring prospectus (DRHP) filed with SEBI said.
Archean is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.