Chemplast Sanmar's weak listing price reflects the fear around the chemical maker's debt pile

• 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.

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.

However, analysts at Angel Broking had recommended avoiding the stock if it falls below the issue price. “We expect a flat opening for the stock...We had given a NEUTRAL rating to the IPO given our concerns due to high debt on books and negative net worth despite having a positive outlook on the chemicals. We would recommend to avoid buying into the stock in case it falls below the issue price post listing given our concerns,” said Jyoti Roy, deputy vice president, equity strategist at Angel Broking.

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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