Deepak Chemtex stock lists at 99.5% premium over IPO price on BSE SME

HAL stock has risen 116 percent so far in 2023, doubling investors' money.

Deepak Chemtex stock made an impressive debut, listing at an 99.5 percent premium to the IPO price on December 6. The stock opened at Rs 159.60 against the issue price of Rs 80 on BSE SME.

Ahead of the listing, Deepak Chemtex shares were trading at an 81 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The issue had received a strong response from investors The offer was subscribed 403 times, the retail portion was booked 475 times, non-institutional investors bid 642 times and qualified institutional buyers picked 96 times the allotted quota.

Deepak Chemtex’s public offer opened for subscription on November 29 and closed on December 1. The price band for the issue was fixed at Rs 76-80 per share. Through the IPO, the company raised Rs 23.04 crore. The offer was entirely a fresh issue of 28.8 lakh shares.

The company will use the net proceeds from the issue to fund capital expenditure towards the installation of plant and machinery, investment in subsidiary DCPL Speciality Chemicals and general corporate purposes.

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Hem Securities was the book-running lead manager, Bigshare Services was the registrar and Hem Finlease was the market maker for the issue.

Deepak Chemtex manufactures colourants for applications in food, drug, cosmetics, cleaning compounds, agriculture, and other industries. The company’s manufacturing unit is located in Ratnagiri District in Maharashtra with a production capacity of over 1200 metric tonnes per annum.

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