Unilex Colours shares debut at ₹89, up 2.3% from the IPO

Shares of Unilex Colours and Chemicals had a lacklustre listing on the National Stock Exchange's SME platform on Thursday, 3 October. The shares opened at ₹89, marking a modest premium of 2.3% over the IPO price of ₹87. Investors looking to buy shares online may find this debut less exciting than anticipated.

IPO details and performance

The SME IPO was valued at ₹31.32 crore and was available for subscription from 25 to 27 September. The shares were priced between ₹82 and ₹87. Despite the muted debut, the IPO attracted strong interest, closing with a remarkable subscription rate of 35.03 times. Bids were received for 8.36 crore shares, significantly exceeding the 23.87 lakh shares on offer.

• Retail investor subscription: 35.11 times
• Non-institutional investors (NII) subscription: 60.74 times
• Qualified institutional buyers (QIBs) subscription: 15.58 times

About Unilex Colours IPO

The Unilex Colours IPO consisted entirely of a fresh issue of 36 lakh shares, with no offer-for-sale component. Retail investors had a minimum application size of 1,600 shares, translating to an investment of ₹1.39 lakh. The allotment date for the IPO was 30 September. The funds generated from this issue will be directed towards several goals, including working capital needs, repaying existing borrowings, and general corporate purposes.

Hem Securities Limited served as the book-running lead manager for the IPO, while Link Intime India Private acted as the registrar. Hem Finlease was designated as the market maker for the Unilex Colours IPO.

Company overview

Established in March 2001, Unilex Colours and Chemicals Limited focuses on manufacturing pigments, trading chemicals, and producing food colours. The company markets its products under the "Unilex" brand, catering to both domestic and international markets. It provides a range of pigment solutions across various industries and offers packaging options such as multi-layer paper bags, corrugated boxes, and jumbo bags.

In financial terms, Unilex Colours reported a 3% increase in revenue and a notable 24% rise in profit after tax (PAT) for the fiscal years ended on 31 March 2024 and 31 March 2023.

Key takeaways

• Unilex Colours and Chemicals shares are listed at ₹89, a 2.3% premium over the IPO price.
• The IPO was highly subscribed, with total bids for 8.36 crore shares.
• The fresh issue raised funds for working capital, loan repayment, and corporate needs.
• The company has shown growth in both revenue and profit after tax.

Investors interested in buying shares online should keep an eye on Unilex Colours for potential future developments.