Chemcel Biotech settled at Rs 5.15 on BSE, a discount of 67.81% against issue price of Rs 16.

On BSE, 1.69 crore shares changed hands on the Chemcel Biotech counter. The stock hit a high of Rs 16 and a low of Rs 4.75. The stock debuted today at Rs 16, the same level at which it had priced the initial pubilc offer (IPO).

The fixed price offering, priced at Rs 16, ended on 12 September 2008 with 1.83 times subscription. It received applications for 2.53 crore shares, as against the net issue of 1.38 crore shares offered.

Chemcel Biotech, 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 crore equity shares of Rs 10 each at a premium of Rs 6 per share.

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 tonnes per day (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.

Chemcel Biotech's net profit rose 30.9% to Rs 1.23 crore on a 5.3% increase in sales to Rs 24.58 crore in the year ended March 2008 over the year ended March 2007.

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