IPO Watch: Chemcon Speciality Chemicals IPO subscribed 149 times, CAMS 47 times on final bidding day

By: and |
Updated: Sep 24, 2020 7:41 AM

Chemcon Speciality Chemicals IPO was subscribed 148.94 times while Computer Age Management Services (CAMS) IPO was subscribed 46.93 times on the third day of the bidding process

CAMS, chemcon Speciality Chemicals, IPODue to increased demand, small IPOs generally quote at a high premium in the grey market

CAMS and Chemcon Speciality Chemicals IPOs have received a robust response from the investors. Chemcon Speciality Chemicals IPO was subscribed 148.94 times while Computer Age Management Services (CAMS) IPO was subscribed 46.93 times on the third day of the bidding process. While Angel Broking IPO was subscribed 146 per cent on day two. Equity markets have recently witnessed bumper listings of Happiest Minds and Route Mobile shares.

Who bid how much for which issue

CAMS IPO, after being fully subscribed by retail investors on day one of the issue, reached overall oversubscription in less than two hours on Tuesday morning. On the final day of the bidding, retail investors have subscribed to their portion 5.45 times. QIBs have so far subscribed to their quota 73.18 times and Non-Institutional Investors (NII) have bid 111.85 times of their portion. CAMS’ IPO consists of only an Offer For Sale from NSE Investments, an existing shareholder, and no fresh issue. The Rs 2,244-crore IPO is the largest to enter markets so far this fiscal year.

Speciality chemicals manufacturer, Chemcon was already fully subscribed on day 1 of the issue, and on Tuesday its subscription reached 12.62 times. On Wednesday, retail investors have subscribed their portion 40.43 times and even NIIs have oversubscribed their quota 449.14 times. QIB subscription was at 113.53 times. Angel Broking, the newly opened issue, was seeing strong demand from retail investors who have fully subscribed their portion. Overall the issue was subscribed 146 per cent on day two of the bidding process.

Small IPOs quote at high premium in grey market

Dipin Kwatra, Director at New Vertical Vera Advisory Pvt Ltd, a wealth management firm, said as the issue size of Chemcon Speciality Chemicals is around Rs 320 crore, with a price band of Rs 338-340, it was trading with Rs 150-200 premium at around Rs 500. Kwatra also added that due to increased demand, small IPOs generally quote at a high premium in the grey market. While CAMS was trading with Rs 300-350 premium over the issue price.

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