Biopol Chemicals IPO Closes with Strong 18.77 Times Subscription
The Biopol Chemicals initial public offering (IPO), which opened for subscription on Friday, February 6, concluded its bidding period on Tuesday, February 10, with impressive investor response. The SME IPO has been subscribed 18.77 times on the final day of subscription, according to data available from the National Stock Exchange (NSE).
Subscription Status and Category-Wise Breakdown
By 3:40 PM on Tuesday, the Biopol Chemicals IPO had received 5,43,33,600 bids against the total issue size of 28,94,400 equity shares. The subscription figures reveal significant interest from specific investor categories:
- Non-Institutional Investors (NIIs): This category demonstrated the strongest demand, submitting 2,59,16,400 bids against their allocated portion.
- Retail Individual Investors (RIIs): Individual investors participated actively, placing 1,72,03,200 bids for their reserved shares.
- Qualified Institutional Buyers (QIBs): Notably, the QIB portion remained unsubscribed on the final day of bidding, indicating institutional investors showed limited interest in this particular offering.
Grey Market Premium and Estimated Listing Price
In the unofficial grey market, shares of Biopol Chemicals were trading at a premium of ₹3 per share, according to data from Investorgain and other grey market tracking platforms. This translates to a Grey Market Premium (GMP) of +3 for the IPO.
Based on this premium, market observers estimate the listing price could be around ₹111 per share, representing a 2.78% increase over the upper end of the IPO price band of ₹108 per share.
IPO Details and Allocation Structure
The Biopol Chemicals IPO was a book-built issue comprising 28,94,400 equity shares with a price band set between ₹102 and ₹108 per share. Importantly, this was a fresh issue with no offer for sale (OFS) component, meaning all proceeds will go directly to the company.
According to the Red Herring Prospectus (RHP), the company plans to utilize the net proceeds for several purposes:
- Purchase of industrial land
- Repayment or prepayment of certain outstanding borrowings
- General corporate purposes
The allocation structure was designed with specific reservations:
- Non-Institutional Investors (NIIs): Allocated 10,94,400 shares (37.81% of the net issue)
- Retail Individual Investors (RIIs): Allocated 9,62,400 shares (33.25% of the net issue)
- Qualified Institutional Buyers (QIBs): Offered 6,86,400 shares (23.71% of the net issue)
Company Background and Timeline
Biopol Chemicals is engaged in the trading, manufacturing, and distribution of specialty chemicals across various segments including silicones, emulsifiers, biochemicals, and polyelectrolytes. The company serves diverse industrial applications with its chemical portfolio.
The basis of allotment for the IPO is expected to be finalized on Wednesday, February 11. Successful applicants can anticipate the shares being credited to their demat accounts on Thursday, February 12. Refunds for unsuccessful bidders are also scheduled to be processed on the same day.
Smart Horizon Capital Advisors Private Limited served as the book-running lead manager for the IPO, while Bigshare Services Private Limited was appointed as the registrar to the issue.
Disclaimer: This information is provided for educational purposes only. Investors are advised to consult with qualified investment advisors before making any investment decisions.
