Archean Chemical lists at 11% over issue price; here's what it means for investors

Shares of Archean Chemical Industries Pvt Ltd have seen an impressive rise right after its stock market debut. On Monday, the stock listed on the NSE at Rs 450 per share, over 11 percent higher than its issue price of Rs 407. On the BSE, shares of Archean Chemical began trading at Rs 449 apiece. Following the impressive surge in the share price, CEO of GCL Securities, Ravi Singhal, asked the investors to stick to the share and hold on to it as it is anticipated to make strong gains. He pointed out the fact that the IPO had been issued at fair price and the company had announced excellent Q1FY23 results, which looked good for the chemical firm.   By the end of the subscription period on 11 November 2022, the public issue had been subscribed 32.23 times. The Archean Chemical IPO comprised an offer for sale (OFS) of up to Rs 1.61 crore shares by the promoter and investors and a fresh issue of equity shares totalling up to Rs 805 crore. The offer’s price per share was in the band of Rs 386-407. The proceeds from the new issue will be used by the company to repay its own Non-Convertible Debentures (NCDs). Ahead of its initial public offering, the business raised Rs 658 crore from anchor investors.   Allocators who applied for the public issue for the listing premium are recommended to maintain stop loss at Rs 440 and wait for further gains, while investors with a medium to long-term vision can maintain their stop loss at 410 per share. According to Singhal, the share price of Archean Chemical may increase to between Rs 550 and 570 in the near term, and go up to Rs 640 in the long run. The stock can also be purchased by market newbies at the current price while keeping the stop loss at Rs 410 with a price target of Rs 550 to 570 for the next three-six months and Rs 640 for one year.   Pravesh Gour, Senior Technical Analyst at Swastika Investmart also predicted a profitable future for the Archean Chemical IPO. He suggested to the investors that a stop loss of Rs. 433 could be maintained by those who applied for listing gains. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.