Speciality chemical company Chemplast Sanmar made a flat debut on the stock market as its shares got listed at a discount of 3 per cent to the issue price of Rs 541.

The Chennai-based company’s shares got listed on the Bombay Stock Exchange (BSE) at Rs 525 and Rs 500 on the National Stock Exchange (NSE). However, the shares of the company recovered at around 12:20 pm and are now trading marginally higher than the issue price on the BSE and NSE.

It may be noted that this was the second listing for the speciality chemical company. The scrip had been de-listed earlier from the bourses in June 2012.

The weak listing is in line with the tepid response received by Chemplast Sanmar’s initial public offering (IPO).

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The portion for Qualified Institutional Buyers (QIBs) was booked 2.7 times and the quota for non-institutional investors was subscribed 1.03 times. Meanwhile, the retail portion was subscribed 2.29 times.

Chemplast Sanmar’s IPO comprised a fresh issue of Rs 1,300 crore and an offer for sale of Rs 2,550 crore. The proceeds from the public offering will be utilised for the early redemption of non-convertible debentures.

The speciality chemicals manufacturer primarily focuses on speciality paste Polyvinyl Chloride (PVC) resin and custom manufacturing of starting materials and intermediaries for pharmaceutical, agro-chemical and fine chemicals sectors. Chemplast Sanmar is part of SHL Chemicals Group owned by Sanmar Holdings.

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It has four manufacturing facilities. Three of them are located in Tamil Nadu and the last one is located in Puducherry. A number of brokerages had given a ‘subscribe’ rating to the public issue, given its position in the industry and a broad spectrum of product offerings.

In addition, some brokerages were also optimistic about the company’s long term performance outlook.