Chemcon Speciality Chemicals Ltd made a spectacular debut on the stock exchanges on Thursday as its shares more than doubled on listing before paring some gains on profit-taking, while mutual fund back-end processor Computer Age Management Services Ltd (CAMS) also made a positive start.
Chemcon Speciality follows the footsteps of Route Mobile and Happiest Minds Technologies Ltd , whose shares also more than doubled on listing earlier this month.
Shares of Vadodara-based Chemcon began trading on the BSE at Rs 730.95 apiece compared with the initial public offering (IPO) price of 340 per share. The stock touched a high of Rs 743.80 apiece in early trade, clocking a gain of 115%.
The stock closed at Rs 584.80, up 72% from the issue price. This gives the company a market capitalisation of 2,142.16 crore compared with a valuation of Rs 1,245.44 crore it sought through the IPO.
The BSE’s benchmark Sensex advanced 629.12 point, or 1.65%, to close at 38,697.05 on Thursday.
The spectacular debut follows an IPO that was covered 150 times with strong demand from all categories of investors -- the issue receiving full subscription on the first day itself.
Meanwhile, CAMS shares began trading on the BSE at Rs 1,518 apiece compared with the IPO price of Rs 1,230 apiece. The stock touched a high of Rs 1,550 apiece in early trade, clocking a gain of 26%.
The stock closed at 1,401.60, up 13.95% from the issue price. CAMS, which counts US private equity giant Warburg Pincus as its backer, now commands a market capitalisation of Rs 6,837.96 as against Rs 6,000 crore it sought in the IPO.
A few other companies have also listed on the main board of the stock exchanges this year. SBI Cards and Payment Services Ltd, which went public in March, had received a very strong response to its IPO but had a subdued listing. Speciality chemicals maker Rossari Biotech Ltd went public in July and its shares listed at a 58% premium to its IPO price.