Strong market debut: Patel Chem Specialities shares list at 31% premium to SME IPO price

Strong market debut: Patel Chem Specialities shares list at 31% premium to SME IPO price

The shares of Patel Chem Specialities made a strong market debut on August 1, listing at Rs 110 apiece on the BSE SME platform. This marks a premium of nearly 31 percent over the IPO price of Rs 84 apiece.

The listing premium is more or less at par with grey market estimates. Ahead of listing, the unlisted shares of the company were trading with a grey market premium of nearly Rs 32 percent over the IPO price at Rs 111 apiece, according to data on Investorgain.

The maiden public issue of the pharmaceutical excipients and specialty chemicals maker had seen strong investor interest during its three days of public bidding, being subscribed a whopping 167 times its offer size between July 25 and July 29.

The company had launched its IPO to raise Rs 59 crore from the capital markets through a fresh issue of 70 lakh shares at a price band of Rs 82-84 per share. Retail investors could bid for a minimum of 1,600 shares, requiring a minimum investment of Rs 1.31 lakh, and in multiples thereafter.

A day before the IPO opened for public bidding, the company mobilised Rs 16.69 crore via allotment of 19.87 lakh shares to 8 anchor investors including Bengal Finance, Meru Investment Fund, Zeal Global Opportunities Fund, Necta Bloom, and Belgrave Investment Fund.

The company that valued at more than Rs 200 crore intends to utilise IPO proceeds for its capital expenditure, and the remainder for general corporate purposes. Cumulative Capital, and Unistone Capital were acting as the merchant bankers for the Patel Chem Specialities IPO.

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