NSE SME IPO Ducol Organics and Colours surges on debut

Shares of Ducol Organics and Colours were trading at Rs 117.50 at 12:23 IST on the NSE, a premium of 50.64% compared with the issue price of Rs 78.

The scrip was listed at Rs 111.95, representing a premium of 43.53% compared with the initial public offer (IPO) price.

So far, the scrip hit a high of Rs 117.50 and a low of Rs 106.35. Over 26.65 lakh shares of the company have changed hands in the counter till now.

The IPO of Ducol Organics and Colours received bids for 16,23,77,600 shares as against 40,40,000 shares on offer. The issue was subscribed 40.19 times.

The non institutional investors category subscribed to 10,10,48,000 shares. The retail individual investors (RIIs) category bought 5,65,90,400 shares. The qualified institutional buyers (QIBs) category put in bids for 47,39,200 shares.

The issue opened for bidding on 9 January 2023 and it closed on 11 January 2023. The price band of the IPO was fixed at Rs 78 per share. The equity shares are proposed to be listed on the SME Platform of National Stock Exchange of India.

The IPO comprised of fresh issue of 40,40,000 equity shares, aggregating up to Rs 31.51 crore. The promoter and promoter group shareholding will dilute to 57.38% post IPO from 79.46% pre-IPO.

The company intends to utilize the net proceeds from the issue for funding working capital requirements, general corporate purposes and for issue related expenses.

Ducol Organics and Colours offers a range of pigment dispersions for various industries like paints, inks, textile, detergent, paper, rubber and plastics color solutions. The company is engaged in the business of manufacturing and selling pigment dispersions, preparations, concentrates, paste colorants and master batches.

The firm has a pan-India customer base, it serves a variety of industries such as paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG.

The company had recorded net profit of Rs 4.17 crore and revenue from operation of Rs 48.59 crore for the six months period ended on 30 September 2022.

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