Shares of Galaxy Surfactants gained 17 per cent over the initial public offering (IPO) during their stock market debut on Thursday. Shares of the company, manufacturer of chemicals used by the home-care industry, closed at Rs 1,730 over their IPO price of Rs 1,480.
The gains were decent considering the market saw a six per cent correction between the close of its IPO and listing. Galaxy Surfactants IPO, which closed on January 31, had seen 20 times more demand than the shares on offer. The Rs 9.3-billion IPO was entirely on offer for sale by promoters.
At Thursday's close Galaxy Surfactants had a market cap of Rs 60 billion.
"The company has seen 25 per cent compounded annual growth in the last three years in earnings. We expect the company to maintain a 20 per cent plus growth trajectory in the coming few years, considering growing personal care markets, its increasing product offerings and geographies," Angel Broking had said in a pre-IPO note asking its clients to subscribe to the IPO.