Indian Emulsifier makes a strong debut, shares list at 225% premium on NSE SME

Speciality chemicals maker Indian Emulsifier Ltd shares listed at a stellar premium of 225% to its issue price on Wednesday, May 22.

Making a strong debut on the NSE SME platform, Emerge, the stock listed at ₹430 per share against the issue price of ₹132 per share.

Shares of the company later hit a high of ₹451.5 apiece and a low of ₹410.05 in early deals.

Indian Emulsifier shares were trading at ₹410.05 on NSE at 10.20 am, down by 4.64% from the listing price but up by 210% from the issue price. More than 16 lakh shares were traded in morning deals.

The speciality chemical producer launched its public offer on May 13 on the NSE SME platform to raise a total of ₹42.39 crore from public investors. The IPO was a book built issue comprising a fresh issue of 32.11 lakh shares. There was no Offer for Sale component. Indian Emulsifier fixed the IPO price at ₹125 to ₹132 per share.

The minimum lot size was 1,000 shares. The minimum investment required by retail investors was ₹1,32,000. The SME IPO received a robust response from public investors. The IPO closed on May 16 with a total subscription level of over 460 times.

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According to the exchange data, applications for 98.45 crore equity shares were received against 21.40 lakh shares on offer for subscription.

The non-institutional investors (NII) category received a bumper response. The NII quota was booked more than 779 times.

The retail investors’ portion was booked 484.54 times. The Qualified Institutional Buyer portion was booked 175.95 times. The company on May 12 had raised ₹12.01 crore from anchor investors.

Indian Emulsifier IPO Objects

According to Indian Emulsifier RHP, the company has proposed to use the IPO proceeds to meet capital expenditure requirements towards plant & machinery, civil work and installation cost. The company will use ₹20.91 crore of IPO proceeds for the same. The company aims to align its technological infrastructure with upgraded requirements. The acquisition of advanced machinery is particularly geared towards catering to the additional demand expected from forthcoming sales efforts.

The company will use ₹8.5 crore for funding working capital requirements and the rest for general corporate purposes.

The company produces and supplies speciality chemicals including Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, SMO & PIBSA Emulsifiers. It has a manufacturing plant at Ratnagiri in Maharashtra. The facility has a production capacity of 4,800 metric tons per annum as of March 31, 2023, and 3,600 MT per annum for the period ended December 31, 2023.

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