Omkar Speciality lists below issue price, plunges 47%

Omkar Speciality Chemicals' shares started the first session at Rs 92, down 6% as compared to issue price of Rs 98 on National Stock Exchange. It was a disappointing session for the company due to weak sentiment in markets.

At 9:44 hours IST, a share was trading at Rs 58.65, after hitting an early high of Rs 101 and low of Rs 51.65 (plunged 47% from issue price). Total traded volume on exchanges was at 1,08,17,480 equity shares, more than issue size of 81 lakh shares.

Company is mainly engaged in the manufacture and sale of speciality chemicals viz. selenium compounds, iodine compounds, molybdenum compounds etc. and pharma intermediates viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.

Omkar Speciality raised Rs 79.38 crore through issue. These issue proceeds are proposed to be deployed for setting up of new manufacturing facility at Unit 4 at Badlapur, Maharashtra, with cost of Rs 32.16 crore; expansion of existing manufacturing facilities at Unit 1, Unit 2 & Unit 3 at Badlapur, Maharashtra, with Rs 14.62 crore; and working capital requirements of Rs 10 crore.

Pravin Herlekar, CMD of company Omkar Speciality Chemicals said major expansion would add more revenues in FY12-13. "In current year, we had a target of Rs 100 in revenues and we alread crossed Rs 92 crore. We will add 200 metric tonnes in capacity next year, so we expect 35% growth or Rs 135-140 crore in revenues of FY11-12," he said.