The initial public offer (IPO) of specialty chemicals manufacturing firm Rossari Biotech was subscribed a whopping 79.37 times on the last day of bidding on Wednesday.

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The Rs 496-crore IPO received bids for 64,87,33,645 shares against the total issue size of 81,73,530 shares, according to data available with the NSE.

The category reserved for qualified institutional buyers (QIBs) was subscribed 85.26 times, non-institutional investors 239.83 times, while retail portion was subscribed 7.23 times, according to merchant banking sources.

On second day of its bidding, it was subscribed about 3 times.

Price range for Rossari Biotech IPO has been fixed at Rs 423-425 per share.

"There was a huge pent up demand for a primary offering as none had come in the last four months. This was a fresh company from a sector which already enjoys premium valuations and this company in particular had the added flavour of personal health and hygiene attached to it," market analyst Arun Kejriwal said.

"Sanitizers in COVID-19 became the icing on the cake and the subscription is testimony to the market response," he added.

According to a few media reports, the unlisted shares were already demanding a premium of 30-35 percent over the IPO price in the grey market. However, traders placed their bets right as they were expecting the issue to close at a higher premium till close date (July 15).

Neogen Chemicals was the last specialty chemicals IPO to come to market in April 2019

All the net proceeds from the issue will be utilised for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes, said the company.

(Inputs taken from PTI)

First Published:Jul 16, 2020 9:58 AM IST