NewsIPOPatel Chem Specialities IPO Attracts Strong Investor Interest, Oversubscribed 8.35 Times on Day 2Patel Chem Specialities IPO Attracts Strong Investor Interest, Oversubscribed 8.35 Times on Day 2
By ScanX News Team
Patel Chem Specialities' IPO reached 8.35 times subscription on July 28, the second day of bidding. Retail investors led with 13.69 times subscription, followed by non-institutional investors at 6.99 times. The Rs 58.80 crore IPO, priced at Rs 82-84 per share, closes on July 29. The grey market premium indicates a potential 53.57% listing gain. The company, a manufacturer of pharmaceutical excipients, is set to list on the BSE SME platform on August 1.
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The Initial Public Offering (IPO) of Patel Chem Specialities continues to garner significant attention from investors, with the subscription rate reaching 8.35 times on the second day of bidding, July 28.
Subscription Details
The SME IPO has received bids for over 3.8 crore shares against the 45.59 lakh shares on offer. Here's a breakdown of the subscription rates across different investor categories:
- Retail Investors: Led the demand with a robust 13.69 times subscription
- Non-Institutional Investors: Showed strong interest with 6.99 times subscription
- Qualified Institutional Buyers: Displayed minimal interest with only 0.01 times subscription
IPO Specifics
| Parameter | Details |
|---|---|
| Issue Size | Rs 58.80 crore |
| Offer Type | Book-building issue |
| Fresh Issue | 70 lakh shares |
| Price Band | Rs 82-84 per share |
| Subscription Window | July 25-29 |
| Allotment Date | July 30 |
| Listing | Scheduled for August 1 on BSE SME platform |
Grey Market Premium
The grey market is indicating strong interest in Patel Chem Specialities shares:
| Metric | Value |
|---|---|
| Grey Market Premium | Rs 45.00 per share |
| Estimated Listing Price | Rs 129.00 |
| Potential Premium | 53.57% over the upper price limit |
Company Profile
Patel Chem Specialities, incorporated in 2008, is a manufacturer of pharmaceutical excipients used in drug formulations. The company's entry into the public market through this IPO marks a significant milestone in its growth journey.
Investor Outlook
The strong oversubscription, particularly from retail and non-institutional investors, suggests a positive sentiment towards the company. However, the muted response from qualified institutional buyers may be a point of consideration for some investors.
As the IPO enters its final day of subscription, all eyes will be on the overall subscription figures and the eventual listing performance on the BSE SME platform.
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