Chemplast Sanmar's weak listing price reflects the fear around the chemical maker's debt pile
Aug 24, 2021, 10:43 IST
- Shares of Chemplast Sanmar listed at ₹525 while the price band was fixed at ₹530-541 per share.
- The IPO was subscribed just 2.17 times on the last day of the bidding.
- The market capitalisation of the company stood at ₹8,397 crore.
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Shares of speciality chemical company Chemplast Sanmar made a weak listing on the National Stock Exchange (NSE) and BSE as the stock listed at 2.96% discount on the issue price band of ₹530-541 apiece. Post listing, the market capitalisation of the company stood at ₹8,397 crore, according to BSE data.
The shares of Chemplast Sanmar were trading at ₹527.25, lower by 2.87% at 10.05 a.m., on August 24.
The grey market had indicated a flat listing for shares of Chemplast Sanmar.
The IPO — open between August 10 and August 12 — received tepid response from investors. It was subscribed 2.17 times on the last day of the bidding.
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Chemplast Sanmar is a speciality chemical manufacturer with a focus on specialty paste poly vinyl chloride (PVC) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors.
The company was looking to raise ₹3,850 crore via IPO comprising ₹1,300 crore fresh issue and offer for sale up to ₹2,550 crore from existing shareholders.
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