Neochem Bio Solutions share price made a strong debut on the Indian stock market on Tuesday, December 9. Neochem Bio Solutions shares are listed at a premium of 10.2% over the price.
Neochem Bio Solutions shares opened at ₹108 apiece on NSE SME. This means that the allottees made a 10% listing gain on the Neochem Bio Solutions IPO debut.
The SME stock gained nearly 2.96% to ₹111.20 apiece, immediately after listing.
Ahead of listing, the shares of Neochem Bio Solutions IPO were trading at a premium of ₹2 at the grey market, as per investorgain.
Neochem Bio Solutions IPO details
The ₹44.97 crore book-built issue, comprising entirely a fresh issue of 45.88 lakh shares, opened on December 2 and closed on December 4. Allotments were finalized on December 5, with shares scheduled to be credited to demat accounts on December 8. At the upper price band of ₹98, the company’s pre-IPO valuation is ₹167.78 crore, and following the issue, the equity base will increase to 1.71 crore shares.
The funds raised from the will be allocated to support long-term working capital needs amounting to ₹23.90 crore, repay borrowings of ₹10 crore, and cover general corporate expenses.
Vivro Financial Services is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue. The Market Maker of the company is Rikhav Securities Ltd.
The subscription was strong across all categories, with the IPO attracting bids 15.52 times the total issue size. Qualified institutional buyers subscribed 21.97 times, non-institutional investors (NIIs) 21.15 times, and retail investors 9.42 times. Before the issue, anchor investors committed ₹12.77 crore on December 1, acquiring 13.03 lakh shares.
Neochem Bio Solutions operates in the specialty performance chemicals sector, offering a diverse portfolio of over 350 customized formulations. Its products serve as key inputs for industries such as textiles and garments, home and personal care, institutional and industrial cleaning, water treatment, paints and coatings, construction, paper and pulp, rubber, and dyes and pigments.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.