Neochem Bio Solutions made a strong start on the stock market on Tuesday. Its shares opened at ₹108 each, marking a 10.2% premium over the IPO price of ₹98. The stock later rose to ₹111.20, giving early investors quick gains.
The company raised ₹44.97 crore through its IPO, issuing 45.88 lakh new shares. Funds from the IPO will be used for working capital, repaying borrowings, and general corporate purposes.
The IPO was highly subscribed, with overall demand 15.5 times the issue size. Qualified institutional buyers applied for 21.97 times, non-institutional investors for 21.15 times, and retail investors for 9.42 times of the shares offered.
Neochem Bio Solutions produces specialty performance chemicals for industries like textiles, home and personal care, water treatment, paints, construction, and more, with a portfolio of over 350 chemical formulations.