Unilex Colours and Chemicals Has a Quiet Market Debut: Shares Start at ₹89, Up Just 2.3% from IPO Price

Unilex Colours and Chemicals had a quiet debut on the stock market on Monday, September 30, with its shares listing at ₹89 on the NSE SME. This is a modest increase of 2.3% over its IPO price of ₹87.

The SME IPO, valued at ₹31.32 crore, was open for subscription from September 25 to September 27 and was priced between ₹82 and ₹87 per share. The IPO attracted strong interest, being oversubscribed 35.03 times, with bids for 8.36 crore shares against the 23.87 lakh shares available. The retail investor segment was particularly popular, with a subscription of 35.11 times, while non-institutional investors (NIIs) oversubscribed by an impressive 60.74 times. The qualified institutional buyers (QIBs) segment was also in demand, with a subscription of 15.58 times.

The Unilex Colours IPO consisted entirely of a fresh issue of 36 lakh shares, with no offer-for-sale component. Retail investors had a minimum application size of 1,600 shares, requiring an investment of ₹1.39 lakh. The IPO allotment date was set for September 30.

The company plans to use the funds raised for several purposes, including meeting working capital needs, repaying some of its borrowings, and general corporate purposes.

Hem Securities Limited acted as the lead manager for the Unilex Colours and Chemicals IPO, while Link Intime India Private Ltd served as the registrar. Hem Finlease was the market maker for the IPO.

About Unilex Colours and Chemicals

Established in March 2001, Unilex Colours and Chemicals Limited specializes in making pigments, trading chemicals, and producing food colors. The company sells its products under the “Unilex” brand in both domestic and international markets. It offers a range of pigment solutions and various packaging options, including multi-layer paper bags, corrugated boxes, HDPE bags, and wooden pallets.

Financially, the company reported a 3% increase in revenue and a 24% rise in profit after tax (PAT) from the fiscal years ending March 31, 2024, to March 31, 2023.