Unilex Colours and Chemicals shares make muted debut, list 2.3% higher over IPO price at ₹89 on NSE SME

Unilex Colours and Chemicals IPO listing: Shares of Unilex Colours and Chemicals made a muted debut on the bourses on Thursday, 3 October as they listed at ₹89 on NSE SME, a premium of just 2.3 per cent over the IPO price of ₹87.

The SME IPO, valued at ₹31.32 crore, was open for subscription from September 25 to September 27. The IPO was priced in the range of ₹82-87 per share.

Following the three-day bidding process, Unilex Colours IPO closed with a strong demand, with the issue garnering 35.03 times subscription. The IPO received bids for 8.36 crore shares against 23.87 lakh shares on offer. The retail investor segment saw a subscription of 35.11 times, while the non-institutional investors (NII) category was booked a massive 60.74 times. Meanwhile, the qualified institutional buyers (QIBs) quota was subscribed 15.58 times.

About Unilex Colours IPO

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

The company plans to utilise the proceeds from the issue to address several objectives, including meeting its working capital requirements, repaying a portion of certain borrowings, and supporting general corporate purposes.

Hem Securities Limited acted as the book-running lead manager of the Unilex Colours and Chemicals IPO, while Link Intime India Private was the registrar for the issue. The market maker for Unilex Colours and Chemicals IPO was Hem Finlease.

About the Company

Unilex Colours and Chemicals Limited, established in March 2001, specialises in manufacturing pigments, trading chemicals, and producing food colours. The company markets its products under the "Unilex" brand, serving both domestic and international markets. It offers a variety of pigment solutions across industries and provides packaging options like multi-layer paper bags, corrugated boxes, HDPE and HDPE-coated bags, multi-layer liners, HM covers, wooden pallets, and jumbo bags.

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