Moneycontrol PRO
Upcoming Webinar:Prashant Shah explains ‘Irrelevance of Bull & Bear Markets for Success in Technical Analysis’. Register For Free!
you are here: HomeNewsBusinessIPO

Chemcon Speciality Chemicals ends 72% higher from its issue price of Rs 340 per share

The listing premium was definitely higher than Happiest Minds Technologies (111 percent premium)

October 01, 2020 / 05:58 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Chemcon Speciality Chemicals, the speciality chemicals maker for pharmaceutical and oilfield industries, opened with a strong 115 percent premium but failed to hold on to all listing gains at close on October 1. The listing premium was definitely higher than Happiest Minds Technologies (111 percent premium).

The stock opened at Rs 730.95 on the BSE, climbed up to Rs 743.80 but immediately slipped below Rs 700. It witnessed further profit booking in afternoon and dropped below Rs 600.

The stock finally settled with 72 percent gains at Rs 584.80 on the BSE as well as National Stock Exchange from its issue price of Rs 340. However, the stock was locked in a 20 percent lower circuit due to profit booking despite more than a 600 points rally on the Sensex.

Trading volumes stood at 19,44,906 and 1,57,79,162 shares in the cash segment of BSE and NSE, respectively.

Also read: Chemcon Speciality Chemicals sees stellar listing; should investors book profits or buy more?

Close

The company is the speciality chemicals manufacturer of pharmaceutical chemicals (HMDS, CMIC) and oil well completion chemicals (inorganic bromides).

"The prospects for chemical companies are bright due to shift of supply chain away from China," Hemang Jani, Head - Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services, said.

It is the only manufacturer of HMDS in India and third largest manufacturer of HMDS worldwide in terms of production. It is also the largest player of CMIC in India and second largest worldwide. Additionally, the company is the only manufacturer of zinc bromide and the largest producer of calcium bromide in India.

Chemcon Speciality Chemicals raised Rs 318 crore via the public issue. Of this, Rs 165 crore would be utilised for the expansion of its manufacturing facility, working capital requirements and general corporate purposes.

Manali Bhatia, Head-Research at Rudra Shares & Stock Brokers, told Moneycontrol that the stock is a definite 'hold' given its new product launches (CBC & 2,5DHT) and expansion plans through a total volumetric reactor capacity of 251.00KL at its existing manufacturing facility in Manjusar, Vadodara. This would significantly increase capacity by 60 percent and also enable economies of scale over the next few years, she said.
Moneycontrol News
first published: Oct 1, 2020 05:58 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark