India’s leading specialty ingredients manufacturer, Galaxy Surfactants made a decent debut on the exchanges, and listed at Rs 1,520 on BSE, 2.7% higher than the issue price of Rs 1,480. The company had earlier set a price band of Rs 1,470-1,480 for its IPO which concluded last week.
Earlier, Galaxy Surfactants Initial Public Offer (IPO) for Rs 937 crore got subscribed by more than 20 times as at the end of last day of bidding on January 31, as institutions bid heavily. The issue received total bids for 8.77 crore shares as against the total issue size of 44.32 lakh shares, totalling to a subscription of nearly 20 times, data from BSE showed. The QIBs portion received bids for 6.87 crore shares as against 12.66 lakh shares reserved for them, implying demand of more than 54 times their reserved portion.
Galaxy Surfactants Initial Public Offer (IPO) to raise up to Rs 937 crore opened for subscription on Monday. Galaxy Surfactants IPO was a complete offer for sale, in which the promoters sold 63.32 lakh equity shares. According to the company’s prospectus, the objects of the offer were to achieve the benefits of listing the equity shares on the stock exchanges and the sale of equity shares by the selling shareholders.
Galaxy Surfactants had garnered a little over Rs 281 crore from anchor investors last week. The book running lead managers to the offer are ICICI Securities, Edelweiss Financial Services and JM Financial. The company’s profit for the previous fiscal year ended 31 March, 2017 was Rs 146.3 crore against Rs 102.7 crore in March 2016.
Angel Broking had given a subscribe rating on the issue given the growth potential of the the specialty ingredients maker Galaxy Surfactants. “At the upper end of the price band, the P/E multiple works out be 36x (pre issue equity base) of FY17 EPS. The company has seen 25% CAGR in the last 3 years in earnings. We expect the company to maintain a 20%+ growth trajectory in the coming few years, considering growing personal care markets, its increasing product offerings and geographies. We recommend ‘SUBSCRIBE’ on the issue for a mid-to-long term period,” Angel Broking had said.