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Chemcon doubles on market debut, Warburg Pincus-backed CAMS lists at 26% premium

By Ankit Doshi

  • 01 Oct 2020
Chemcon doubles on market debut, Warburg Pincus-backed CAMS lists at 26% premium
Credit: 123RF.com

Chemcon Speciality Chemicals Ltd made a spectacular debut on the stock exchanges on Thursday as its shares more than doubled on listing before paring some gains on profit-taking, while mutual fund back-end processor Computer Age Management Services Ltd (CAMS) also made a positive start.

Chemcon Speciality follows the footsteps of Route Mobile and Happiest Minds Technologies Ltd , whose shares also more than doubled on listing earlier this month.

Shares of Vadodara-based Chemcon began trading on the BSE at Rs 730.95 apiece compared with the initial public offering (IPO) price of 340 per share. The stock touched a high of Rs 743.80 apiece in early trade, clocking a gain of 115%.

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The stock closed at Rs 584.80, up 72% from the issue price. This gives the company a market capitalisation of 2,142.16 crore compared with a valuation of Rs 1,245.44 crore it sought through the IPO.

The BSE’s benchmark Sensex advanced 629.12 point, or 1.65%, to close at 38,697.05 on Thursday.

The spectacular debut follows an IPO that was covered 150 times with strong demand from all categories of investors -- the issue receiving full subscription on the first day itself.

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Meanwhile, CAMS shares began trading on the BSE at Rs 1,518 apiece compared with the IPO price of Rs 1,230 apiece. The stock touched a high of Rs 1,550 apiece in early trade, clocking a gain of 26%.

The stock closed at 1,401.60, up 13.95% from the issue price. CAMS, which counts US private equity giant Warburg Pincus as its backer, now commands a market capitalisation of Rs 6,837.96 as against Rs 6,000 crore it sought in the IPO.

A few other companies have also listed on the main board of the stock exchanges this year. SBI Cards and Payment Services Ltd, which went public in March, had received a very strong response to its IPO but had a subdued listing. Speciality chemicals maker Rossari Biotech Ltd went public in July and its shares listed at a 58% premium to its IPO price.

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