Chemcon specialty chemicals Pvt. Ltd was established in 1988 and is one of the renowned organizations. They are engaged in manufacturing, supplying and exporting Pharmaceutical Intermediaries. The company’s products are Ammonium Chloride, Ester Hydrochloride and Sodium Bromide.
Chemcons chemical is a leading manufacturer of Pharmaceutical chemicals and generates maximum revenue from this particular segment. This company not only serves the domestic market but also exports its products to overseas market such as USA, China, Japan, UAE, etc. its manufacturing unit is in Gujarat near Vadodara.
This company has certain competitive strengths. Such as-
- Strong and consistent financial performance.
- Dedicated manufacturing units for each plant.
- Largest manufacturer of pharmaceutical chemicals across the globe.
- Diversified clientele base in the domestic and global markets.
The company is issuing the IPO for meeting capital expenditures from expansion of manufacturing facility. The net proceeds from the IPO will also be used meet business capital requirements and general corporate purposes.
The IPO was open for subscription from September 21st and is closing on 23rd September. The issue type is book-built issue, and the total issue of 93,52,940 equity shares are being done.
The IPO price band is between Rs. 338-340. For subscribing to these shares, a minimum order of 1 lot has to be placed, which amount to 44 shares.
BID OPENS- 21st September
BID CLOSES- 23rd September
FINALIZATION OF BASIS OF ALLOTMENT- 28th September
REFUND- 29th September
CREDIT SHARES TO DEMAT A/C- 30th September
IPO SHARES LISTING DATE- 1st October
The distribution of the shares among the different types of investments are-
15%- Non-institutional investors
35%- Retail individual investors
Today (23rd September) the IPO is over-subscribed by 46.5 times on the final day of bidding. The IPO has received 30.50 crores equity shares against the offer size of 65.59 lakh equity shares.
On this note, Keshav Lahoti, Associate equity analyst at Angel Broking said, “Due to over subscription in such a big number, most of the retail investors will be disappointed as they won’t get a single lot. We believe a lot is left on the table for the investors by comparing its valuation with other specialty chemical companies. We are positive on the future outlook for the industry as well as the company, so we have recommended subscribing to the issue for long-term as well as for listing gains.”
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