NEW DELHI: The initial public offering (IPO) of Chemcon Speciality Chemicals was subscribed 17.26 times on Day 3 of the bidding process so far. As of 11.30 am, the issue had received applications for 11,31,79,440 shares against 65,59,173 shares on offer.

The retail investors were the leading group applying for the stock. Out of 32,83,580 shares on offer for retail investors, the issue had received applications for 28.17 times shares. The quota for non-institutional investors or high net-worth investors was subscribed 15.28 times and QIB quota 1.37 times.

“Such oversubscription was in line with our expectation, as we believe a lot is left on the table for the investors by comparing its valuation with other speciality chemical companies. We are positive on the future outlook for the industry as well as the company. So, in our IPO note we have recommended a “Subscribe” rating to the issue for long term as well as for listing gains,” said Keshav Lahoti, Associate Equity Analyst, Angel Broking.

“Due to its position as a leading manufacturer of its products globally, it is getting strong traction among investors. But, product concentration and client concentration risk cannot be ruled out. Although Company clients are sticky in nature, they have long-standing relationships. Aurobindo Pharma has been its client for more than 20 years,” he added.

The Vadodara-based company plans to raise Rs 318 crore, out of which it already raised Rs 95.40 crore through allotment of 28.06 lakh shares to anchor investors at Rs 340 per share last week.

The company is offering a fresh issue of equity shares, aggregating up to Rs 165 crore and offer for sale of up to 45,00,000 equity shares, to be sold in the price range of Rs 338-Rs 340.

In the grey market, the shares of the company were trading with a premium of Rs 300 per share, that is, 88 per cent more than the price band set for the IPO.

Analysts said that the issue is demanding an inexpensive valuation of 25.5 times FY20 earnings per share and that the company could gain from a shift in demand from China. But high client concentration, criminal proceeding against a promoter and limited portfolio are risks to the company.

Most brokers had ‘subscribe’ ratings on the stock. Angel Broking said the company’s return ratios and margins are better than most of its peers, adding that the company is undervalued compared to its peers and “a lot of value is left in the table”.

“As we are positive on the future outlook for the industry as well as the company, we would recommend to “Subscribe” issue for long term as well as for listing gains,” it said.

customDimension.dimension1 = "ET Free"; customDimension.dimension4 = "ETMarkets.com";

customDimension.dimension6 = "Native - 78271105"; customDimension.dimension8 = "Sep 23, 2020"; customDimension.dimension9 = "IPOs/FPOs";

customDimension.dimension12 = "chemcon speciality chemicals IPO subscription,Angel Broking,associate equity analyst,Chemcon Speciality Chemicals,ipo,QIB"; customDimension.dimension13 = "12:39 PM IST";

customDimension.dimension15 = "No"; customDimension.dimension16 = "No";

(function () { var a = window.localStorage && localStorage.getItem('et_syftCounter') || ''; a = a && JSON.parse(a) || {}; if(a.beforeSyft) { customDimension.dimension32 = a.beforeSyft; } if(a.afterSyft) { customDimension.dimension33 = a.afterSyft; } })()

var contentAge="-0.0002777777777777778"; if(contentAge) { customDimension.dimension34 = contentAge > 2 ? '>48hs':'<48hrs'; } customDimension.dimension25 = "articleshow_main"; customDimension.dimension26 = "Markets"; customDimension.dimension27 = "Markets/IPOs/FPOs/"; customDimension.dimension29 = "1977021501"; customDimension.dimension48 = "78271105"; customDimension.dimension57 = _tiluuid; ga('send', 'pageview', customDimension); ga('create', 'UA-5594188-55', 'auto','ETPTracker'); //ETPrime GA var newHookId ='1977021501'; var newHookId2 = '14655708'; if(newHookId == '1715249553' && newHookId2 == '1052732854'){ newHookId = '1052732854'; // politicsnation }else if(newHookId == '1715249553' && newHookId2 == '1373380680'){ newHookId = '1373380680'; // Economy } var subsec1_value="1977021501"; var subsec1_2value="14655708"; if(subsec1_value == '1715249553' && subsec1_2value == '1052732854'){ subsec1_value="1052732854"; // politicsnation }else if(subsec1_value == '1715249553' && subsec1_2value == '1373380680'){ subsec1_value="1373380680"; // Economy } (function (g, r, o, w, t, h, rx) { g[t] = g[t] || function () {(g[t].q = g[t].q || []).push(arguments) }, g[t].l = 1 * new Date(); g[t] = g[t] || {}, h = r.createElement(o), rx = r.getElementsByTagName(o)[0]; h.async = 1;h.src = w;rx.parentNode.insertBefore(h, rx) })(window, document, 'script', 'https://static.growthrx.in/js/v2/web-sdk.js', 'grx'); grx('init', 'gf999c70d'); var grxDimension = {url: window.location.href, title : document.title, referral_url : document.referrer}; if(window.customDimension && window.objDim) { for(key in customDimension) { var dimId = 'd' + key.substr(9, key.length); if(objDim[dimId] && customDimension[key]) { grxDimension[objDim[dimId]] = customDimension[key]; } } } var subsStatus="Free User"; var jData = JSON.parse(localStorage.getItem('jStorage')); function getCookie(n) {var ne = n + "=", ca = document.cookie.split(';');for (var i=0;i< ca.length;i++){ var c = ca[i]; while (c.charAt(0) == ' ') c = c.substring(1, c.length); if (c.indexOf(ne) == 0) return c.substring(ne.length, c.length); } return null; } (function () { if(ssoid = getCookie('ssoid')) { try { grx('userId', ssoid); var pfuuid = getCookie('pfuuid'); if(pfuuid) { grxDimension['et_uuid'] = pfuuid} grxDimension['user_login_status'] = 'LOGGEDIN'; var grx_userData = jData['prime_'+getCookie('TicketId')]; grx_userData = grx_userData || {}; var grx_userPermission = grx_userData.permissions; if(grx_userPermission.indexOf("expired_subscription") > -1) { subsStatus="Expired User"; } else if (grx_userPermission.indexOf("subscribed") > -1 && grx_userPermission.indexOf("cancelled_subscription") > -1 && grx_userPermission.indexOf("can_buy_subscription") > -1) { subsStatus="Paid User - In Trial"; } else if(grx_userPermission.indexOf("subscribed") > -1) { subsStatus="Paid User"; } else if(grx_userPermission.indexOf("etadfree_subscribed") > -1) { subsStatus="Ad Free User"; } } catch (e) {} } else { grxDimension['user_login_status'] = 'NONLOGGEDIN'; } grxDimension['user_subscription_status'] = subsStatus; })()

grx('track', 'page_view', grxDimension);

if(geolocation && geolocation != 5 && (typeof skip == 'undefined' || typeof skip.fbevents == 'undefined')) { !function(f,b,e,v,n,t,s) {if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)}; if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window, document,'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '338698809636220'); fbq('track', 'PageView'); }

var _comscore = _comscore || []; _comscore.push({ c1: "2", c2: "6036484"});

if(geolocation && geolocation != 5) { (function() { var s = document.createElement('script'), el = document.getElementsByTagName("script")[0]; s.async = true; s.src = (document.location.protocol == "https:" ? "https://sb" : "http://b") + ".scorecardresearch.com/beacon.js"; el.parentNode.insertBefore(s, el); })(); }

if(geolocation && geolocation != 5) {

(function(){ function pingIbeat() { window._pg_endpt=(new Date()).getTime(); var e = document.createElement('script'); e.setAttribute('language', 'javascript'); e.setAttribute('type', 'text/javascript'); e.setAttribute('src', "https://agi-static.indiatimes.com/cms-common/ibeat.min.js"); document.head.appendChild(e); } if(typeof window.addEventListener == 'function') { window.addEventListener("load", pingIbeat, false); } else { var oldonload = window.onload; window.onload = (typeof window.onload != 'function') ? pingIbeat : function() { oldonload(); pingIbeat(); }; }

})(); }





Source link

Posts You May Love to Read !!

0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *