Shares of the company ended at Rs 742.4, with a gain of 74.7 per cent over its issue price of Rs 425 per share on the BSE.
Since then the market has seen V-shaped recovery — first plunging nearly 40 per cent and then recouping entire losses.
Market players said Rossari’s strong debut on the bourses will be a sentiment booster for companies waiting in the wings to launch their IPOs.
UTI Mutual Fund and Computer Age Management Services are some of the companies that are next in line to come out with an IPO. Mindspace Business Parks REIT also launches its IPO next week.
While share sales by listed companies have been largely uninterrupted this year, the IPO market has been crippled by the Covid-19 pandemic.
Shares of Rossari traded in the range between Rs 664 and Rs 803 on the National Stock Exchange, where nearly Rs 2,600 crore worth of shares changed hands. Another Rs 220-crore shares changed hands on the BSE. This is against an IPO size of less than Rs 500 crore, indicating heightened speculative bets on the counter.
Market players said wealthy investors made a killing as shares of Rossari soared past their acquisition cost after factoring in interest payments. These investors had placed leveraged bets worth nearly Rs 18,000 crore on the IPO and were poised to make money if the stock listed above Rs 550.
Rossari manufactures chemicals used in fast-moving consumer goods, apparel, poultry and animal feed industries. For the year ended March, Rossari had reported a net profit of Rs 65 crore on revenues of nearly Rs 603 crore. After Thursday’s close, the company commands a market capitalisation of Rs 3,855 crore.