Aatmnirbhar version : PLI Semiconductor
Tag: Chemcon
Angel broking IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Angel Broking – the fourth largest broking firm in India as per active client accounts on NSE. The company provides its services through online and digital platforms on the back of a network of more than 11,000 sub-brokers as on June 30, 2020.
Offer purpose — 600cr offer for sale + fresh issue. 40% will be used for working capital requirement by company
Key Service domains – provides broking and advisory services, margin funding , loans against shares and financial products distribution to its clients.
Clients -80% from tier 2 and tier 3 cities
Revenues from Key Services–75% from broking. 10% from Margin funding
Risks —
The company’s main revenue source is the broking business, and company has not diversified into wealth management kind of services
Intense competition in broking business
Extensive supervision and regulation by various regulatory bodies that may cause fluctuation in earnings e.g. recently SEBI margin trading rule
Future
Flat fee-based model, a developing derivatives market, the use of modern technology, lower penetration of mutual funds and shares and debentures in household savings and customer acquisition through digital medium enable the company to scale up its business easily.
Digital acquisition of customers will save cost
Valuations
Little on higher side.
Should we apply?
Moderate chances of allotment due to small size.
People can avoid to subscribe
Listing day may see see moderate gains . Recommended to book profits if any on listing day
Also Read
Happiest Minds IPO crisp summary –Listing with substantial gains
Route Mobile IPO crisp Summary — Listing with substantial gains
Rossari biotech IPO detailed summary –Listed with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Chemcon IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Chemcon– is a manufacturer of specialized chemicals, such as HMDS (Hexamethyl Disilazane) and CMIC (Chloromethyl Isopropyl Carbonate) and is market leader in both products. This are predominantly used in the pharmaceuticals industry, and inorganic bromides, namely Calcium Bromide, Zinc Bromide and Sodium Bromide, which are used as completion fluids in the oilfields industry
Offer purpose — 318cr Complete offer for sale by promoters
Key Service domains – Pharmaceuticals and oilfields industry
Clients -Hetero Labs Limited, Laurus Labs Limited, Aurobindo Pharma Limited, Sanjay Chemicals (India) Private Limited, and the key customers of Oilwell Completion Chemicals include Shree Radha Overseas, Water Systems Specialty Chemical DMCC, Universal Drilling Fluids and CC Gran Limited Liability Company.
Revenues from Key Clients— 67%
Revenues from Key regions–32% exports
Risks —
Limited product range
Significant portion from few customers
Promoters past is the biggest risk. There are cases of non-compliance and criminal proceedings
Future
Company has grown revenues and profits and partially supported by ban of chemicals in China to support environmental policies
Due to specialty chemicals and market leader, company stands at good point to gain
Valuations
Reasonable considering peers in India in specialty chemicals. Fundamentals seems promising as of now
Should we apply?
Less chances of allotment due to small size. People who understand chemical business well can take the risk of applying
Less risk taking people can avoid
Listing day may see see moderate gains . Recommended to book profits if any on listing day
Keep an eye on promoter walk the talk scenario if holding for long
Also Read
Happiest Minds IPO crisp summary –Listing with substantial gains
Route Mobile IPO crisp Summary — Listing with substantial gains
Rossari biotech IPO detailed summary –Listed with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
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