Omkar Speciality disappoints on debut, plunges 40% on BSE

Making a disastrous debut on the bourses, Omkar Speciality Chemicals nosedived nearly 40 per cent from its issue price of Rs 98 in early trade on the Bombay Stock Exchange on Thursday.

Shares of Omkar Speciality Chemicals listed 3.06 per cent lower than their issue price of Rs 95 a piece on the Bombay Stock Exchange. Within minutes of the opening bell, the scrip slipped a whopping 39.79 per cent to hit an intra-day low of Rs 59.

In a similar fashion, shares of the company debuted at 6.12 per cent discount, at Rs 92, on the National Stock Exchange and plummeted over 41 per cent in the first half hour of trade.

Omkar Speciality Chemicals had fixed the issue price for its initial public offer (IPO) at Rs 98 - the upper end of the price band of Rs 95 to 98. The company raised about Rs 79 crore from its offer.

The company, which is mainly engaged in the manufacture and sale of specialty chemicals, plans to utilise the proceeds of the issue for setting up a new manufacturing facility at Badlapur in Maharashtra, besides expansion of existing manufacturing facilities and meeting working capital requirements.

Meanwhile, benchmark Sensex was down 93.40 points from its previous close at 9.33 am on Thursday, at 17,499.37.