All three initial public offers (IPOs), Sudar Garments, Finotex Chemical and AcroPetal Technologies have given spectacular returns after they were listed in the last two days, even though the benchmark indices were struggling for a gain.
Share prices of Finotex Chemical have more than doubled in the first day of listing. The specialty chemicals and enzymes manufacturer's stock touched a high of Rs 158 on the Bombay Stock Exchange (BSE), as against the issue price of Rs 70.
The shares were listed today after the company raised Rs 29.48 crore through its IPO, finally settling at Rs 141 after getting listed at Rs 80 on the BSE. The stock is not listed on the National Stock Exchange (NSE).
The company intends to spend the issue proceeds for setting up a manufacturing facility for the production of specialty chemicals, setting up of sales office in Mumbai and margin money for working capital.
Interestingly, qualified institutional buyers (QIBs) stayed away from these issues, which were subscribed less than two times; the QIB portion of Sudar Garments was subscribed just 0.17 times.
Sudar Garments, the other IPO which got listed today, also ended 48% higher at Rs 114 as against the issue price of Rs 77 per share. The stock opened at Rs 74 and hit high of Rs 118 on the BSE. On the NSE, the stock opened at Rs 80.05 and touched high of Rs 117 before finally settling at Rs 113.
The company, a manufacturer of garments for menswear, womenswear and kidswear, which has raised Rs 70 crore, proposes to utilize a part of the net proceeds of the issue for expansion of the existing apparel manufacturing unit located near Mumbai.
Acropetal Technologies, which listed yesterday, had surged to Rs 140, a 56% against its issue price of Rs 90 per share on first day of its listing. Today, the stock settled at Rs 101.35 on the Bombay Stock Exchange (BSE).
The Bangalore-based company had raised Rs 170 crore, priced the IPO at the top end of the Rs 88-90 per share price band. The issue proceeds will be used to fund the company's potential acquisitions, to set up a software development centre cum corporate office in the country and abroad.
These three companies collectively raised Rs 269 crore from the investors, currently valued 31% higher at Rs 354 crore. All the companies have clocked a combined turnover of Rs 1,547 crore on both the exchanges.