Prasol Chemicals IPO Listing Today: Shares Debut Nearly 10% Below Issue Price At Rs. 610 On NSE

Prasol Chemicals IPO Listing: After being fully subscribed during the bidding period Prasol Chemicals Ltd. made a weak debut on the stock exchanges this morning on Wednesday, September 16, with shares listing at a major discount to their IPO price.

The Prasol Chemicals share price opened at Rs. 610 per share on the NSE, with a 9.76% discount to the IPO issue price of Rs. 676. On the BSE, the stock debuted at Rs. 611 per share, down 9.62% from the issue price.

The weak listing was quite expected because of the negative trend in the grey market before the debut, where Prasol Chemicals shares had been trading below the IPO price.

How Much Loss Did Investors Face?

At the NSE listing price of Rs. 610, investors who received one minimum lot of 22 shares would see a loss of Rs. 1,452 compared with the IPO issue price, before brokerage, taxes and other charges.

Prasol Chemicals IPO Details

Prasol Chemicals had launched its Rs. 500 crore mainboard IPO with a price band of Rs. 643-Rs. 676 per share. The issue comprised a fresh issue of Rs. 80 crore and an offer for sale (OFS) of Rs. 420 crore.

The minimum lot size was 22 shares, requiring retail investors to invest Rs. 14,872 at the upper end of the price band.

The issue opened for subscription on September 8 and closed on September 10 and in its three days subscription period, the IPO was subscribed around 3.47 times overall, with the qualified institutional buyer portion subscribed 7.59 times, the non-institutional investor portion 1.89 times and the retail portion 1.79 times.

GMP Had Signalled A Weak Listing

The grey market premium had fallen considerably over the past few days. As per the Investogain data, Prasol Chemicals IPO GMP fell from much higher levels earlier in September and moved into negative territory ahead of the listing around minus Rs. 12 to minus Rs. 15 before the debut, indicating that the shares could list below the ₹676 issue price.

About Prasol Chemical

Prasol Chemicals is a speciality chemicals manufacturer that was incorporated in 1992. The company manufactures more than 150 products across several chemical categories and caters to industries including paints and coatings, inks, construction and adhesives, pharmaceuticals, agrochemicals and personal care.