Prasol Chemicals shares debut at a 10% discount to their issue price on the bourses

Shares of Prasol Chemicals Ltd. made a subdued debut on the bourses, on Wednesday, September 15, listing at a discount in comparison to their issue price

The stock began trading at ₹610 apiece, a 10% discount to its issue price of ₹676 per share.

Earlier, Grey Market Premiums were also pointing to a subdued listing as the stock in the unlisted market traded at a discount of ₹13 in comparison to their issue price.

However, grey market premiums (GMPs) are only an indication of investor sentiment in the unlisted market and can change rapidly. They should not be considered a reliable indicator of the stock's actual listing price.

The ₹500-crore initial public offering (IPO) of speciality chemicals manufacturer Prasol Chemicals Ltd. was subscribed 3.30 times during the September 8-10 subscription period, according to data available on the NSE.

The qualified institutional buyer (QIB) portion was subscribed 7.22 times, while the non-institutional investor (NII) and retail portions were subscribed 1.80 times and 1.70 times, respectively.

Prasol Chemicals IPO: Price band and anchor investors

Prasol Chemicals had fixed the price band at ₹643-676 per equity share.

Ahead of the IPO opening, the company mobilised nearly ₹150 crore from anchor investors on September 7.

The company allotted 22.19 lakh equity shares to anchor investors at ₹676 per share, according to a circular uploaded on the BSE website. The total value of the allocation stood at ₹149.99 crore.

The anchor investors included Aditya Birla Sun Life Insurance Company, Tata AIA Life Insurance Company, Turnaround Opportunities Fund, ITI Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund and Kotak Mahindra Mutual Fund.

Of the total anchor allocation, more than 10 lakh shares, or 45.34%, were allotted to domestic mutual funds through eight schemes.

Prasol Chemicals IPO: Issue structure

The public offer comprised a fresh issue of equity shares worth up to ₹80 crore and an Offer For Sale (OFS) of shares worth up to ₹420 crore by existing selling shareholders.

The company plans to use the proceeds from the fresh issue towards debt repayment, working capital requirements and general corporate purposes.

Prasol Chemicals: Company profile

Prasol Chemicals was originally incorporated as Prachi Poly Products Pvt Ltd. in 1992. It changed its name to Prasol Chemicals in 2007 and subsequently became a public company again in 2022.

The company is a forward-integrated manufacturer of acetone and phosphorus-based speciality chemicals, along with other speciality chemicals involving complex and differentiated chemistries.

Its products are used in pharmaceuticals, agrochemicals and several consumer applications. Acetone and phosphorus derivatives in its portfolio are also used as critical raw materials in products such as sunscreens, shampoos, flavours, fragrances and disinfectants.

Note To Readers

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.