BLS Polymers IPO Makes Blockbuster Debut: Shares List At 65% Premium, Stock Hits Rs 253 After Listing

BLS Polymers IPO Listing: Shares of BLS Polymers Ltd made a stellar debut on the stock exchanges on Tuesday, November 3, listing at a premium of 65.33% over the issue price, as investors rewarded the company’s IPO with a strong response in the primary market.

The stock opened at Rs 248 on the listing day against its issue price of Rs 150 per share, translating into a listing gain of Rs 98 per share. The shares extended their gains after listing, surging as much as 68.67% to trade at Rs 253 on the BSE, as of 10:15 am. On the NSE, the stock was trading at Rs 252.26, up Rs 102.26 or 68.17% over the issue price.

At the listing price of Rs 248, investors who received one lot of 100 shares would have seen the value of their investment rise from Rs 15,000

to Rs 24,800, translating into a gain of Rs 9,800. At the day’s high of Rs 253, the investment value climbed to Rs 25,300, generating a profit of Rs 10,300 per lot.

The blockbuster debut comes after BLS Polymers’ Rs 255-crore initial public offering (IPO) received an overwhelming response from investors, with the issue subscribed 241.22 times on the final day of bidding.

BLS Polymers IPO Subscription: What Drove The Strong Demand?

The IPO received bids for 2,87,05,58,600 equity shares against 1,19,00,000 shares on offer, translating into an overall subscription of 241.22 times, according to NSE data.

The non-institutional investors’ (NII) category was subscribed 559.20 times, while the qualified institutional buyers’ (QIB) portion received 200.25 times subscription. The retail investor category was subscribed 128.36 times.

The issue had received a strong response from the very first day, with subscriptions reaching 9.60 times on Tuesday, October 27. BLS Polymers had also raised Rs 76.50 crore from anchor investors ahead of the public issue.

The IPO comprised an entirely fresh issue of 1.7 crore equity shares, with the price band fixed at Rs 142-150 per share. The minimum investment for retail investors was Rs 14,200 for a lot of 100 shares at the upper end of the price band.

Where Will BLS Polymers Utilise IPO Money?

According to the company’s red herring prospectus (RHP), BLS Polymers plans to utilise Rs 77.56 crore from the IPO proceeds towards expanding its manufacturing facility and increasing production capacity for select existing products.

Another Rs 89.5 crore has been earmarked for meeting working capital requirements, while the remaining proceeds will be used for general corporate purposes.

What Does BLS Polymers Do?

Established in 1991, BLS Polymers manufactures custom-formulated polymer compounds used across several industries, including telecommunications, power, railways, water, and oil and gas distribution.

The company operates a manufacturing facility in Goa with an installed production capacity of 35,251 metric tonnes per annum. Its operations span 23 states and Union Territories in India, while its export markets include 13 countries, such as the US, Germany, Saudi Arabia, the UAE and Bangladesh.

BLS Polymers is part of the BLS Group, which has business interests across textiles, education, polymers, visa and consular services, banking business correspondent services and e-governance.

Unistone Capital acted as the book-running lead manager to the issue, while KFin Technologies was the registrar.