The stock opened 3% higher at Rs 1,520 on BSE and at Rs 1,525 on the National Stock Exchange (NSE).
The portion of shares reserved for qualified institutional buyers was subscribed 54.27 times, while that set aside for non-institutional and retail investors was subscribed 6.96 times and 6 times, respectively. The issue was completely offer-for-sale (OFS), thus the company will not receive any proceeds from it.
Galaxy Surfactants is one of the India’s leading manufacturers of surfactants and other specialty ingredients for the personal care and home care industries. Its products find application in a host of consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products.
“On valuation front, Galaxy is demanding a P/E valuation of 35.9 times as compared to peer average of 20 times. Its overseas peers are in the matured market and thus comparing with them will be inappropriate,” Choice Broking said in IPO note.
If the demanded valuation of Galaxy is compared with the BSE FMCG index, then it is available at a discount. Thus considering the growth outlook of personal and home care products, the inelastic demand nature and the positioning of the company in the market, we strongly feel that it would create value in future, it added.