Four IPOs get investors' backing; chemical firm and jeweler make their mark

Anupam Rasayan's Rs 760-crore offer was subscribed 45 times; Kalyan Jewellers' IPO was subscribed 60 per cent on the first day of the issue

Four IPOs were oversubscribed Tuesday, marking investors search for promising companies across sectors as some analysts questioned the valuations.

Chemicals firm Anupam Rasayan’s Rs 760-crore initial public offer (IPO) was subscribed 45 times. The institutional portion was subscribed 66 times; the wealthy investor portion 97 times and the retail investor portion 11 times.

Anupam Rasayan has two divisions: life science-related specialty chemicals comprise agrochemicals, personal care and pharmaceuticals. The other comprises pigment and dyes, and polymer additives. The IPO closed Tuesday, and the company will use proceeds for debt repayment.

The huge oversubscription comes even as some analysts raised concerns over at premium valuations compared to its listed peers and poor working capital management.

Kalyan Jewellers’ IPO was subscribed 60 per cent on the first day of the issue. The Kerala-based jewellery chain priced its IPO between Rs 86-87 per share. On Monday, the company raised Rs 352 crore from 15 anchor investors. The IPO comprises a fresh issue of Rs 800 crore and an offer for sale of Rs 375 crore. And the company plans to use the IPO proceeds for funding working capital requirements and general corporate purposes.

Meanwhile, IPOs of Laxmi Organics and Craftsman Automation were subscribed 6.05 times and 1.26 times cent on their second day, data provided by stock exchanges showed. The two IPOs will close on Wednesday