Shares of Shree Pushkar Chemicals & Fertilisers were trading at Rs 63 at 11:20 IST on BSE, a discount of 2% compared with the initial public offer price of Rs 65.
Meanwhile, the S&P BSE Sensex was down 307.82 points or 1.20% at 25,411.76.
The stock debuted at Rs 60 on BSE, a discount of 5% over its initial public offer (IPO) price. The stock hit a high of Rs 63 and a low of Rs 60 so far during the day. On BSE, 2.37 lakh shares were traded on the counter so far during the day.
The Shree Pushkar Chemicals & Fertilisers IPO closed on 27 August 2015. It was subscribed 1.34 times, with total bids for 1.53 crore shares, compared with 1.14 crore equity shares on offer.
Category-wise subscription data showed that the Qualified Institutional Buyers (QIBs) portion of the IPO was subscribed 0.97 times. Non institutional investors (NII) category was subscribed 2.09 times. The retail investors portion of the IPO was subscribed 1.54 times.
The IPO comprised of fresh issue of equity shares and an offer for sale of 20.26 lakh shares by the selling shareholder viz. India Enterprise Development Fund (IEDF). The price band for the IPO was fixed at Rs 61 to Rs 65 per share.
Promoted by first generation entrepreneurs Punit Makharia and Gautam Makharia, Shree Pushkar Chemicals & Fertilisers manufactures dye intermediates, sulphuric and its derivative acids and Di-Calcium Phosphate. The company also manufactures Single Super Phosphate (SSP) and Soil Conditioner.
The company intends to utilize the proceeds of the IPO for acquisition of an existing factory at Lote Parshuram in Maharashtra, which is located near the company's existing manufacturing facilities. The proceeds of the IPO will also be utilised for financing the setting up of new manufacturing facilities for manufacture of reactive dyes with a capacity of 3,000 tonnes per annum (TPA), H-Acid with a capacity of 750 TPA and Vinyl Sulphone (VS) Ester with a capacity of 1,000 TPA.
Further, the proceeds of the IPO will also be utilized for setting up of additional effluent treatment plant at the existing facility, construction of additional godowns at existing facility for meeting the additional storage requirements for finished goods and for general corporate purposes.
The company's net profit rose 78.72% to Rs 18.65 crore on 26.86% growth in revenue from operations to Rs 266.52 crore in the year ended 31 March 2015 (FY 2015) over the year ended 31 March 2014 (FY 2014).
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