Patel Chem Specialities IPO: GMP Up 47%, 20x Times Subscription On Day 2

The initial public offering (IPO) of Patel Chem Specialities continued to witness a strong demand on the second day of bidding on July 28, driven by retail investors.

The SME IPO saw an overall subscription of 19.25 times till 5:00 p.m. on Monday, as per the Chittorgarh data.  

Patel Chem Specialities IPO received bids for more than 8.96 crore shares against 46.59 lakh shares on offer.

Retail investors showed the highest demand by subscribing to their quota over 30 times, while the Non-Institutional Investors (NIIs) booked the issue over 17.5 times. The Qualified Institutional Buyers’ (QIBs) segment was also fully subscribed today, with a 1.01 times subscription.

Here's all you need to know about the Patel Chem Specialities IPO.

The grey market premium (GMP) for the Patel Chem Specialities IPO stood at Rs 40 apiece as of 5:00 p.m. on July 28, according to InvestorGain. The latest GMP signals an estimated listing price of Rs 124 apiece, at a premium of 47.62% against the upper limit of the issue price.  

Note: GMP does not represent official data and is based on speculation.

The BSE SME IPO is a book-building issue of Rs 58.8 crore. It comprises only a fresh issue of 70 lakh shares.

Retail investors can participate in the IPO by bidding for at least two lots comprising 3,200 shares. This amounts to a minimum investment of Rs 2,62,400. High Net-Worth Individuals (HNIs) can bid for at least three lots, amounting to an investment of Rs 4,03,200.

The price band for the IPO has been fixed between Rs 82 and Rs 84 per share. 

The subscription window for the IPO is open from July 25 to July 29. The allotment of shares is proposed to be finalised on July 30. Patel Chem Specialities will transfer shares to the Demat accounts of the successful bidders on July 31. The company will also process refunds for non-allottees on the same day.

Shares of Patel Chem Specialities are proposed to be listed on the BSE SME platform on Aug. 1.  

Cumulative Capital Pvt. is the book-running lead manager of the Patel Chem Specialities IPO. MUFG Intime India Pvt. is the registrar and Globalworth Securities Ltd. is the market maker for the issue. 

The company has proposed to use proceeds from the IPO to fund capital expenditure requirements and for general corporate purposes. 

Patel Chem Specialities manufactures pharmaceutical excipients, which are used in drug formulations. It was incorporated in 2008. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids