Onyx Biotec Shares List At Over 10% Discount To IPO Price On NSE SME

Share price of Onyx Biotec Ltd. made a weak debut on Friday on the NSE SME platform, Emerge. The stock was listed at Rs 54.05 apiece on the NSE, at a discount of 11.39% over the issue price of Rs 61 per piece. Immediately after listing, the stock rallied 5% to hit the upper circuit limit at Rs 56.75 apiece.

After listing, investors who were allotted at least a single lot of 2,000 shares, would have made losses of Rs 13,900 (Rs 6.95 x 2,000) on the minimum investment of Rs 1,22,000.

Ahead of the listing, Onyx Biotec GMP hinted at a premium of Rs 5 per share at 8:28 a.m. on Nov. 22. As per InvestorGain, the indicative listing price of Onyx Biotec stood at Rs 66 apiece, pointing to a gain of 8.2% over the IPO price.

GMP or grey market price is not an official price quote for the stock and is based on speculation.

The initial share sale opened for subscription on Nov. 13, and closed on Nov. 18, after a three-day bidding period in between stock market holidays.

Onyx Biotec IPO saw a strong response from investors, with a mega demand from non-institutional investors. 

The issue was subscribed 198 times during the three-day bidding period. The NSE SME issue was booked 603 times in the non-institutional investors’ category. Retail investors subscribed their portion over 118 times, while qualified institutional buyers subscribed their quota by 32.49 times.

The public offer comprised an entirely fresh issue of 48.1 lakh shares worth Rs 29.34 crore.

Onyx Biotec IPO price band was fixed between Rs 58 to Rs 61 per share. 

Share allotment for bidders was finalised on Nov. 18. Mas Services Ltd. was the registrar for the issue. Horizon Management Pvt. was its book running lead manager, while Giriraj Stock Broking was the market maker.

Onyx Biotec has proposed to use proceeds from the IPO to upgrade its unit that manufactures large volume parenterals for intravenous use. It will also set up a high-speed cartoning packaging line at another of its existing manufacturing units for dry powder injections. The rest of the proceeds will be used for debt repayment and general corporate purposes.

Onyx Biotec Ltd., a pharmaceutical company incorporated in 2005, manufactures sterile water for injections. It also manufactures and provides an extensive range of dry powder injections and dry syrups to Indian and overseas markets. The company has two manufacturing units in Himachal Pradesh’s Solan.