Chemcon Speciality makes sturdy debut, lists at 115% premium to situation worth -

Chemcon Speciality makes sturdy debut, lists at 115% premium to situation worth

Shares of Chemcon Speciality Chemical compounds, on Thursday, made a stellar debut on the bourses, itemizing at Rs 731, a 115 per cent premium in opposition to situation worth of Rs 340 per share on the BSE.

At 10:01 am, the inventory was buying and selling at Rs 669, up 97 per cent in opposition to its situation worth. The inventory has touched a excessive of Rs 743.80 and low of Rs 650, thus far. Round 299,000 million shares have modified palms on the counter on the BSE.

The Rs 318 crore preliminary public providing (IPO) of had obtained sturdy response from the traders. The difficulty was over-subscribed by 47 occasions. The portion of share sale reserved for retail traders was subscribed 41 occasions, whereas these reserved for non-institutional traders and certified institutional consumers had been subscribed 113 and 449 occasions, respectively, knowledge out there on the exchanges confirmed.

Chemcon is current into HMDS (hexamethyldisilazane), CMIC (chloromethyl isopropyl carbonate) and Oil area chemical compounds. Since, China being the most important participant into HMDS and CMIC with whole capability to the tune of 50-60 per cent of the worldwide market, it is without doubt one of the main exporter of those two chemical compounds the world over. India additionally imports to the tune of round 40 per cent of HMDS (Demand of ~4000 MT) and 60 per cent of CMIC (Demand of 2530 MT), which majorly comes from China.

Publish Covid-19, there was anti-china sentiments the world over, which we anticipate to learn Chemcon on condition that it has already expanded capability for HMDS and more likely to improve capability for CMIC within the coming time. It’s evident that the corporate may more likely to seize import share within the years to return in a view that it maintains pricing dynamics in step with the Chinese language gamers, analysts at ICICI Securities stated in an IPO notice.

“Since CMIS goes into Tenofovir and with expectations of higher development outlook from the aforementioned drug over the interval, one can anticipate higher development outlook for the corporate. Additional, improve within the capability for each HMDS and CMIS by Chemcon, one ought to anticipate pharma chemical enterprise income to be extra tilted to the group income forward and thereby the operational efficiency,” the brokerage agency stated.

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