Shares of Sharda Cropchem closed at Rs 231.45 up 48% on the BSE which was started off trade with 66.67 percent rally on day one (Tuesday Sept 23), which is higher than analysts’ expectations of around 40-45 percent jump over issue price of Rs 156.
The News International Team
It was an excellent session for shares of Sharda Cropchem that rallied as much as 75.6 percent intraday Tuesday (amid weak market conditions) before closing at Rs 230.95, up 48 percent over issue price of Rs 156.
The stock opened at Rs 260 (up 66.67 percent over IPO price) on the National Stock Exchange, which was far higher than analysts’ expectations of Rs 225. However, intraday low for the scrip was Rs 225.
It traded with volumes of 3.55 crore equity shares on both exchanges, which was worth Rs 868 crore. Investors earned huge money by investing in Sharda IPO that was oversubscribed 60 times.
Also read: To invest money in products’ registration: Sharda Cropchem
The minimum lot size was 90 shares. So these shares were worth Rs 20,278.5 on closing basis as against investment of Rs 14,040.
Mumbai-based Sharda Cropchem is a crop protection chemical company engaged in the marketing and distribution of a wide range of formulations and generic active ingredients globally. It is also involved in order based procurement and supply of belts, general chemicals, dyes and dye intermediates.
The company did not get money raised through this issue as purpose of the public issue was to carry out sale of 2,25,55,124 equity shares by selling shareholders (HEP Mauritius, Ramprakash V Bubna and Sharda R Bubna).
Bubna family, the promoter and promoter group, reduced their stake in the company from 84.13 percent to 75 percent and non-institutional investor HEP Mauritius offloaded its entire stake of 15.87 percent.