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Agro chemical firm Sharda Cropchem on Tuesday had a stellar stock market debut, with its shares gaining 48 per cent over the Initial Public Offering (IPO) price.
The stock closed at Rs 231, up Rs 75, or 48 per cent, compared to its issue price of Rs 156 a share.
During intra-day trade, the stock had jumped 75 per cent to Rs 274. However, it lost ground as IPO investors booked profits amid weakness in the overall market.
The listing gains follow strong investor demand during Sharda's IPO, which concluded on September 9. The Rs 350-crore offering was subscribed 60 times, drawing bids from all category of investors.
Sharda had reported net profit of Rs 107 crore on revenue of Rs 815 crore during 2013-14. The company, which derives 80 per cent of its revenue from agrochemical products and the rest from conveyer belts and dyes, enjoys operating margins of 20 per cent. Sharda has a cash balance of Rs 140 crore.
Market players said good post-listing performance by Sharda Cropchem and Snowman Logistics will help to attract more investors towards the primary market.
Cold storage firm Snowman, which made its debut earlier this month, has seen its stock price almost double.
