Dishman's scrip debuts at 209% premium

Dishman Pharmaceuticals set a new 2004 record, with its scrip closing on Day One at Rs 542, a whopping 209 per cent premium over the issue price of Rs 175. Thus Dishman has beaten the 179 per cent record recently set by the Power Trading Corporation (PTC).

The Dishman stock opened at Rs 330, a 88.57 per cent premium to the issue price, and went on to hit an intra-day high of Rs 593.70, a 239 per cent premium. More than 48.01 lakh shares were traded on the BSE. Power Trading Corporation had closed Day One at Rs 44.65, a premium of 179 per cent over the Rs 16 issue price.

Ashok Kumar, director, Lotus Strategic Consultants, said, "Institutional investors who missed out in the initial offer seem to be willing to pay a high premium in the secondary market for stocks, which have a proven business model. However, retail investors must be careful of such a strategy of looking at IPOs only from the gains on listing day."

Dishman Pharmaceuticals and Chemicals is a Gujarat-based pharmaceutical company focused on contract manufacturing for multinational pharmaceutical companies.

It produces quats phosponium and ammonium quaternary compounds (essentially a commodity business), specialty chemicals, active pharmaceutical ingredients and intermediates. Dishman Pharma had offered 34.33 lakh shares in a price band of Rs 155-175. The issue closed on April 7 and was oversubscribed 38 times.