New Delhi, August 7(HS): Shares of Renol Polychem, a color masterbatches and industrial chemicals producer, had a disappointing debut in the stock market, listing flat at ₹105, the same price as its IPO. Following the listing, shares fell to ₹99.75, resulting in a 5% loss for IPO investors on the first trading day.
The IPO raised ₹25.77 crore and was open for subscription from July 31 to August 1, achieving an overall subscription of 6.83 times. The Qualified Institutional Buyers (QIB) portion was subscribed 8.41 times, while Non-Institutional Investors (NII) and retail investors subscribed 6.89 and 6.51 times, respectively.
A total of 24.54 lakh new shares were issued with a face value of ₹10. Funds raised are earmarked for new machinery, debt repayment, working capital, and general corporate purposes. The prospectus highlighted the company's improving financial health, with a net profit of ₹7.30 lakh in FY 2022-23 projected to rise to ₹1.53 crore in FY 2023-24 and ₹5 crore in FY 2024-25.
Despite fluctuating debt levels—ending FY 2022-23 at ₹5.36 crore, dropping to ₹2.58 crore in FY 2023-24, and increasing again to ₹6.95 crore by FY 2024-25—current payments reflect a profit of ₹1.14 crore and reduced debt to ₹5.28 crore.
Hindusthan Samachar / Jun Sarkar
