Chemcel Bio-Tech lists at Rs 8.85, discount of 45%

Date:10-15-2008

Chemcel Bio-Tech Ltd shares Monday listed at Rs 8.85 on BSE, a discount of 44.69 per cent to the issue price of Rs 16 per share.

Chemcel Biotech, currently engaged in manufacturing of agrochemicals and planning to expand into bio-diesel business, entered the capital market with an initial public offering of 1,54,00,000 equity shares of Rs 10 each at a premium of Rs 6 per share.

The net issue to the public was 1,28,00,000 shares and constituted 49.39 per cent of the post issue paid-up capital.

As a part of its expansion plans, Chemcel proposes to set up a bio-diesel manufacturing plant at a cost of Rs 10.95 crore at Kondapalli near Vijaywada, Andhra Pradesh, with a capacity of 20 tpd of three shifts. It will also meet additional working capital needs on account of increased operations for the agrochemical & bio fertilizer division at Rs 9.45 crore.