The manufacture of a specialised chemical company named Chemcon Speciality Chemicals and Computer Age Management Services (CAMS) had closed their Initial Public Offer (IPO) on 23rd September. Many application came from investors, even the stock market weakness extended for straight three days. The IPO of Computer Age Management Services (CAMS) of Rs 2,242-crore, a registrar and transfer agent for mutual funds, was subscribed 46.9 times. On the other hand, the Rs 318 crore IPO of Chemcon Speciality, a manufacturer of speciality chemicals, witnessed healthy appetite across investor categories with QIB portion being subscribed 113.4 times, HNI portion 450.5 times and retail portion 40.4 times. 

The IPO was offered in the price band of Rs 338-Rs 340, and the company had already raised Rs 95.40 crore through allotment of 28.06 lakh shares to anchor investors at Rs 340 per share last week. “Clearly, there is a frenzy in the IPO market supported by liquidity but having said that both businesses are fundamentally sound. CAMS is the number one player in the duopoly market of the registrar and transfer agent for mutual funds. At the same time, Chemcon has tailwinds in the form of sector re-rating and capacity expansion,” said Geetanjali Kedia, senior research analyst at SPTulsian.com. CAMS does not leave much on the table for investors vis-à-vis Chemcon which looks more promising at the IPO prices, said Kedia.