Fine Organic gets listed at 4% premium

Fine Organic Industries is another new listing today.  As against the IPO price of Rs.783, the stock got listed on the BSE at Rs.815 and within moments of listing, went on to Rs.823 and then slipped to Rs.787. It is now quoted at Rs.805 levels.

The IPO was subscribed 9 times with Qualified institutional buyers (QIBs) portion getting subscribed 12.86 times, non-institutional investors 21 times and retail investors 1.44 times.

Our verdict in the New Issue Analysis section was, “Near debt free status, healthy margins, high entry barriers (as typical additive approval time ranges between 3-5 years) are key positives for the company, catering to the growing consumption related industries. Since issue pricing is more-or-less in line with listed peers, one can expect moderate listing gains. If one has a longer view, the stock looks very promising. Hence, advised to add this stock to one’s portfolio, to witness some ‘fine’ gains over the medium-to-long term.”