Chemcel Biotech a company engaged in the business of agro-chemicals listed at Rs 16 on the BSE at its issue price.
At 10.02 am the share was trading at Rs 8.6 on the BSE almost at half of its issue price. The share touched an intraday high of Rs 16 and an intraday low of Rs 8.2. The total traded quantity was 9,93,011 shares.
The public issue of 1.54 lakh equity shares of Rs 10 each was subscribed 1.83 times.
The company plans to use the earnings from the issue to set up a bio-diesel manufacturing unit in Andhra Pradesh. This plant will be set up in Kondapalli in Andhra Pradesh at a cost of Rs 10.95 crore and will have a capacity of 20 tonnes a day of three shifts.
For this unit the company has entered into an agreement with Jetro Petro Biotech in order to obtain raw materials.
The company will also use the proceeds to meet its working capital requirements due to an increase in its agro-chemical and bio-fertilizer divisions.
