Onyx Biotec Listing: Shares hit 5% upper circuit after a weak market debut at 11% discount to issue price

Onyx Biotec Limited shares made a weak debut on the NSE SME platform on Friday, November 22, with its shares listing at a discount of over 11% to the IPO price.

Onyx Biotec shares debuted on the NSE SME platform, Emerge, at ₹54.05 apiece, down 11.39% compared to the issue price of ₹61 apiece. However, the stock rallied 5% to hit the upper circuit limit at ₹ 56.75 apiece, immediately after listing.

Retail investors who were allotted at least one lot, or 2,000, shares would have made a loss of ₹13,900 (₹6.95 x 2,000) after the stock started trading on the exchange.

As many as 6.06 lakh shares of the company changed hands on the NSE within first 15 minutes of trade. The total market capitalisation of Onyx Biotec Limited stood at ₹102.9 crore.

Onyx Biotec IPO details

Onyx Biotec IPO was worth ₹29.34 crore. The book-building issue consisted of a fresh issuance of 48.1 lakh shares. The IPO price band was fixed at ₹58 to ₹61 per share.

The three-day subscription window for the Onyx Biotec IPO, which opened on Wednesday, November 13, and closed on November 18, was booked 198.68 times. Investors across categories placed bids for over 63.57 crore shares, compared to the 32 lakh shares offered for subscription.

The non-institutional investors’ (NIIs) quota of Onyx Biotec IPO was booked 603.43 times. The retail investors’ quota was booked 119.36 times. The NSE SME issue was booked 32.49 times in the Qualified Institutional Buyers (QIBs) category.

The company plans to use the money raised via the public issue to upgrade its existing manufacturing facility to make large-volume parenteral solutions for intravenous use. A portion of the funds will also be used to set up a high-speed carton packaging line at the company’s existing manufacturing unit. The remaining proceeds will also be used to repay loans and for other general corporate purposes.

About Onyx Biotec Limited

Onyx Biotec Limited was incorporated in May 2005. The pharmaceutical company provides sterile water for injections. The company also offers contract manufacturing services for a range of Dry Powder Injections and Dry Syrups for the domestic and international markets. Notable clients of Onyx Biotec include Hetero Healthcare Limited, Mankind Pharma Limited, Sun Pharmaceutical Industries Limited, Aristo Pharmaceuticals Private Limited, Macleods Pharmaceuticals Limited and Mapra Laboratories Private Limited.