Chemcon Specialty Chemicals More Than Doubles On Listing

Shares of Chemcon Specialty Chemicals Ltd. more than doubled on debut, a week after the company concluded its initial public offering with an overwhelming response.

The stock started trading at Rs 730 apiece, a 115% premium to its issue price of Rs 340, according to data available on the exchanges. The stock rose to as much as Rs 743.8, before paring some of the gains.

This specialty chemical maker's Rs 318-crore IPO was subscribed 149 times on the final day of bidding on Sept. 23. Non-institutional investors made the bulk of the purchases, with the category reserved for them subscribing 450.5 times. Institutional investors followed with 113.4 times bid. The portion for retail portion subscribed 40.4 times.

Chemcon sold 93.5 lakh shares through the offer at Rs 338-340 apiece. It had raised Rs 95.44 crore from anchor investors ahead of its IPO. The specialty chemicals maker intends to use the IPO proceeds as capital expenditure for expanding manufacturing units, working capital and other corporate purposes.