Chemcon share price doubles over IPO price on listing; beats Happiest Minds, Route Mobile listing gains

Chemcon Speciality Chemicals shares zoomed on the stock market debut on Thursday as the scrip got listed at Rs 731 apiece, a premium of Rs 391 on the upper band of the issue price of Rs 338-340 per equity. The stock listed on the National Stock Exchange (NSE) at a price of Rs 731 per share, a 115 per cent premium over its issue price. On BSE, Chemcon shares got listed at Rs 730.95 apiece, a premium of 114.99 per cent over IPO price. The Rs 318-crore Chemcon Speciality Chemicals IPO received a good response, subscribing nearly 150 times on the final day of the bidding. Non-Institutional Investors (NII) had bid the most for the stock.

Last month, Happiest Minds Technologies IPO also saw a robust response from investors and was subscribed 151 times. The shares got listed at an 11 per cent premium from the IPO price. Similarly, Route Mobile shares skyrocketed on stock market debut day and were listed at 105 per cent premium. Ahead of listing, Chemcon Speciality Chemicals shares were trading with a premium of Rs 353-357, at around Rs 697 apiece, according to Manthan Mehta, Head Unlisted & Private Equity Rurash Financial Services Pvt Ltd.

Chemcon Speciality Chemicals got fully subscribed within a few hours of IPO opening on the first day of bidding. Retail investors subscribed their portion 40.43 times, NIIs oversubscribed their quota 449.14 times while QIB subscription was at 113.53 times. The issue comprised a fresh issue of equity shares aggregating up to Rs 165 crore, and an offer for sale of up to 45 lakh equity scrips. The price band for Chemcon Speciality Chemicals was fixed at Rs 338-340 per share. One day before the IPO, the Vadodara-based company raised Rs 95.40 crore through allotment of 28.06 lakh shares to 13 anchor investors at Rs 340 per share. Most of the brokerages had recommended to subscribe to Chemcon Speciality Chemicals IPO.

Motilal Oswal Financial Services advised investors to subscribe to Chemcon Speciality Chemicals due to the leadership position in niche products, high entry barriers and healthy financials. Further considering the bright prospects for Chemical companies due to shift of supply chain away from China, the brokerage firm believes that Chemcon would be well placed to capture this with its planned capex.