BLS Polymers shares make a solid market debut; stock list at 65% premium

Shares of BLS Polymers made a solid Dalal Street debut on Tuesday, November 03 as the specialty compound maker was listed at Rs 248 apeice on both NSE Ltd at a premium of 65.33 per cent over its issue price of Rs 150. Similarly, the stock settled with a premium of 62.73 per cent at Rs 244.10 on BSE Ltd.

As of the listing price, investors made a profit of Rs 9,800 per lot consisting of 100 equity shares. The listing of BLS Polymers has been much the expectations. Ahead of its debut BLS Polymers was commanding a grey market premium (GMP) of 70-75, suggesting a listing pop of 47-50 per cent for the investors. However, the GMP stood around Rs 50 during the bidding period.

The IPO of BLS Polymers was sold between October 27 and October 29. It offered its shares in the price band of Rs 142-150 per share with a lot size of 100 shares. The company raised a total of Rs 255 crore from its IPO, which was entirely a fresh share sale of 1.7 crore equity shares.

The issue was overall booked subscribed 241 times, attracting bids worth over Rs 43,000 crore via nearly 61.60 lakh applications. The portion for qualified institutional bidders (QIBs) was booked 200.25 times, while the quota for non-institutional investors (NIIs) was subscribed nearly 560 times. The allocation for retail investors was subscribed 128 times during the three-day bidding period.

New Delhi-based BLS Polymers manufactures specialised polymer compounds used in wires, cables and underground pipelines. Its products include HDPE, MDPE, LLDPE, XLPE, PVC, HFFR, cable filling compounds and adhesive coating compounds, catering to industries such as power, telecommunications, railways, water, and oil and gas.

Brokerage firms were mostly positive on the issues, suggesting to subscribe to it for both listing gains and long-term basis. Unistone Capital was the sole book running lead manager of BLS Polymers IPO and Kfin Technologies Ltd served as the registrar of the issue.