The initial public offer (IPO) of Fine Organic Industries was subscribed 0.12 times on Wednesday, the first day of the offer with investors bidding for 6.20 lakh shares of the 53.65 lakh shares offered to them. Qualified Institutional Buyers bid for 0.17 times the shares offered to them, high net worth individuals bid for 0.01 times their allocation, and retail investors 0.13 times. Fine Organic Industries, which is engaged in the manufacture of additives has set a price band of Rs 780 to Rs 783 per share for its initial public offering (IP0). The company plans to offer 76.64 lakh shares for subscription through the IPO, which priced at the upper price of the band would indicate an issue size of Rs 600 crore. The offer will close on June 22. Investors can bid for a minimum of 19 equity shares and multiples of 19 thereof.
The 100% offer-for-sale constitutes 25% of the post-offer paid-up capital of the company. Fine Organics produces additives used in food, plastic, cosmetics, paint, ink, coatings and other application in various industries. The company has a range of 387 products sold under the brand name of ‘Fine Organics.’ For the nine months ended December 2017, the company posted a profit after tax of Rs 60.9 crore. For the year ended March 2017, the company posted a profit of Rs 78.4 crore. In 2017, 36 companies raised Rs 67,147 crore through IPOs. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. BSE, GIC Re, NIA, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products, S Chand and Company and Cochin Shipyard are some of the companies who completed their IPOs in 2017.