Chemplast Sanmar Ltd.'s Rs 3,850-crore initial public offering emerged as the third-least subscribed issue so far this year.
The issue was subscribed only 0.16 times on first day, 0.26 times on day two and 2.17 times on the final day.
The specialty chemical maker was selling shares at Rs 530-541 apiece in the three-day IPO. It comprised a fresh issue of Rs 1,300 crore and an offer-for-sale worth Rs 2,550 crore by the promoter, the Sanmar Group.
The company was seeking a market valuation of Rs 7,754 crore at the upper end of its price band.
The company is returning to the exchanges after a nine-year gap. It had voluntarily delisted in May 2012 when it acquired shares of face value value of Re 1 each from investors at Rs 15 apiece.
Chemplast plans to use proceeds from the fresh issue to redeem non-convertible debentures of up to Rs 1,238.3 crore within 90 days of its close. It had issued NCDs aggregating to Rs 1,270 crore of seven-year tenure and interest rate of 17.5% per annum.
Subscription Details: Day 3
The IPO was subscribed 2.16 times as of 4 p.m. on Aug. 12.
Institutional investors: 2.70 times
Non-institutional investors: 1.03 times
Retail investors: 2.23 times
Research Reports On Chemplast Sanmar IPO:
Favorable Industry Dynamics To Support Diversified Business Growth: KR Choksey
Strengths, Business Strategy, Key Concerns: HDFC Securities Retail Research
Watch BloombergQuint's IPO Adda with Chemplast Sanmar:
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