Omkar Speciality IPO subscribed 4.67 times on final day

Omkar Speciality Chemicals' initial public offer (IPO) received a smart response from investors and was oversubscribed 4.67 times, garnering total demand for over Rs 370 crore on the the final day of the issue today.

The company, mainly engaged in the manufacture and sale of specialty chemicals, attracted bids worth 3.77 crore shares as against 81 lakh shares on offer, according to the data available with the National Stock Exchange.

Omkar Speciality Chemicals, which had fixed a price band of Rs 95-98, expects to raise funds in the range of Rs 76.95 crore to Rs 79.38 crore.

The company plans to utilise the proceeds of the issue for setting up a new manufacturing facility at Badlapur in Maharashtra, expansion of existing manufacturing facilities and meeting the requirements of working capital.

The issue which opened for subscription on January 24, closes today.

The category reserved for retail investors was subscribed 9.0 times. In the non-institutional segment, the offer was subscribed 5.27 times. Bidding by qualified institutional buyers (QIBs) for the issue subscribed 0.82 times.

According to analysts, the issue got a good response from investors due to the company's strong fundamentals.

Almondz Global Securities is the sole book running lead manager of the issue.

Omkar Speciality Chemicals is in the business of manufacturing and sale of specialty chemicals like iodine compounds and pharma intermediates viz potassium iodate among others.