Omkar Speciality Chemicals Ltd IPO (Omkar speciality IPO) Detail

Jan 24, 2011 - Jan 27, 2011

Incorporated in 2005, Omkar Speciality Chemicals Ltd is mainly engaged in the manufacture and sale of speciality chemicals viz. selenium, compounds, iodine compounds, molybdenum compounds etc. and pharma intermediates viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.

Company is primarily involved in the production of speciality chemicals and pharma intermediates. The Inorganic Intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth & Tungsten derivatives and the organic intermediates include Tartaric acid derivatives and other intermediates. These products find applications in various industries like Pharmaceutical Industry, Chemical Industry, Glass Industry, Cosmetics, Ceramic Pigments and Cattle & Poultry Feeds.

Company has four Units at MIDC, Badlapur (E), Dist: Thane, Maharashtra, India. Omkar Speciality Chemicals exporting their products to Europe, Canada, Asia, South America & Australia. The total exports constituted 8.69%, 12.35% and 7.97% of gross sales during FY 2008, FY 2009 and FY 2010 respectively.

Company Financials

ParticularsFor the year/period ended (in Rs. lakhs)
Total Income6891.925064.644329.213,731.852,403.15
Profit After Tax (PAT)513.45313.04258.30193.58136.97

Objects of the Issue

The Object of the issue are to:

1. Setting up of new manufacturing facility at Unit 4 at Badlapur, Maharashtra;
2. Expansion of existing manufacturing facilities at Unit 1, Unit 2 & Unit 3 at Badlapur, Maharashtra;
3. Meeting Working Capital requirements;
4. General corporate purposes; and
5. Issue expenses.

Omkar speciality IPO Details

IPO Date Jan 24, 2011 to Jan 27, 2011
Listing Date Thursday, February 10, 2011
Face Value ₹10 per share
Price ₹95 to ₹98 per share
Lot Size 60 Shares
Issue Size8,100,000 shares of ₹10
(aggregating up to ₹79.38 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Company Promoters

The present Promoters of the Company are:

1) Mr. Pravin Herlekar
2) Mr. Omkar Herlekar

Omkar speciality IPO Lot Size

The Omkar speciality IPO lot size is 60 shares. A retail-individual investor can apply for up to 34 lots (2040 shares or ₹199,920).

Application Lots Shares Amount
Retail (Min) 1 60 ₹5,880
Retail (Max) 34 2040 ₹199,920

Omkar Speciality Chemicals Ltd

CARE Limited has assigned an IPO Grade 3 to Omkar Speciality Chemicals Ltd IPO. This means as per CARE, company has 'Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Click here to download the CARE IPO Grading Document for Omkar Speciality Chemicals Ltd.

Omkar Speciality Chemicals Ltd IPO Tags:

Omkar Speciality Chemicals Ltd IPO, Omkar Speciality Chemicals IPO, Omkar Speciality IPO Bidding, Omkar Speciality Chemicals IPO Allotment Status, Omkar Speciality Chemicals IPO drhp and Omkar Speciality IPO listing.

Omkar speciality IPO Subscription Status (Bidding Detail)

The Omkar speciality IPO is subscribed 4.67 times on Jan 27, 2011 5:00:00 PM. The public issue subscribed 9.90 times in the retail category, 0.82 times in the QIB category, and 5.27 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Omkar speciality IPO Prospectus

Omkar speciality IPO Rating

Rating:Rated 4.2 stars
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Omkar speciality IPO Listing Date

Listing Date Thursday, February 10, 2011
BSE Script Code 533317
Listing In B Group of Securities
ISIN INE474L01016
IPO Price ₹98 per share
Face Value ₹10 per share

Listing Day Trading Information

IPO Price
Last Trade

Company Contact Information

Omkar Speciality Chemicals Ltd
Omkar Speciality Chemicals Ltd,
B-34, MIDC, Badlapur (E),
Thane- 421503, Maharashtra
Phone: +91-251-2690651/2697340

Omkar speciality IPO Registrar

Bigshare Services Pvt Ltd

Phone: +91-22-6263 8200

Omkar speciality IPO Review

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Omkar speciality IPO FAQs

Omkar speciality IPO is a main-board IPO of 8,100,000 equity shares of the face value of ₹10 aggregating up to ₹79.38 Crores. The issue is priced at ₹95 to ₹98 per share. The minimum order quantity is 60 Shares.

The IPO opens on Jan 24, 2011, and closes on Jan 27, 2011.

Bigshare Services Pvt Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Omkar speciality IPO opens on Jan 24, 2011 and closes on Jan 27, 2011.

Omkar speciality IPO lot size is 60 Shares and the minimum order quantity is .

You can apply in Omkar speciality IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Omkar speciality IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Omkar speciality IPO allotment status.

The Omkar speciality IPO listing date is on Thursday, February 10, 2011.
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Omkar speciality IPO Message Board

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708. gundu anna |   Link |May 8, 2011 6:21:28 PM
IPO Mentor IPO Mentor (500+ Posts, 100+ Likes)
this not for long term, if u r in profit exit, chemical companies are not for long term investments
707. seenuipo |   Link |May 1, 2011 9:15:18 AM
Top Contributor Top Contributor (200+ Posts)
I am requesting to the members of this forum ,

Most of us are traders,please express your views in trading techniques only.
This is the stock had given an Opportunity for shorting when goes it's issue price.Moreover it has stayed about 3 more min to exit with gains.
The most beautifulness of stock is it has never retraced back to the issue price and given 30 to 40 percentage of profit those shorted the issue.

Hence I request again,Please decide what to do when the stock crosses issue price.

There are very rare cases of crossing issue price several times .Sothat one can cofused.
706. Newipo |   Link |Apr 24, 2011 1:24:48 AM
706. gundu anna
What is next target of omkar? Ipo prize is 98
Long time pass but omkar is down under prize
705. gundu anna |   Link |Apr 24, 2011 12:05:23 AM
IPO Mentor IPO Mentor (500+ Posts, 100+ Likes)
buy omkar shares
704. nilesh kakkad |   Link |Apr 1, 2011 8:59:44 PM
why sbibond 3tier is listing so much less compare to 4 tier and there is so much diff. in price today also what to do can buy sbi 3 tier bond pls tell anyboby to help me thanks a lot if anyboby knows the answer
703. Sreedhar |   Link |Mar 22, 2011 10:42:23 AM
IPO Mentor IPO Mentor (900+ Posts)
Dear Narasimhan,
2 reasons for the debacle:
1)Nifty tanked more than 450 points from the date of subscription to listing.
2)Due to this reason as sentiment was pretty bad & good midcaps also had tumbled more than 40 percent so when they were coming at cheap price there were no takers.As it listed in discount there were heavy sellers.Thats why at the first available chance I asked people to get out at 65.
It is in a good space & only future results will tell how it is performing fundamentally but technically it is suffering from over ownership & it is the main problem.It should deliver in its quarterly results then people will take a relook at it.
Remember once a stock falls down below its issue price I sell it immediately.
702. Narasimiah narasimhan |   Link |Mar 22, 2011 1:07:01 AM
Dear Sreedhar:

From your comments when the above issue was on, I got the impression that you recommended the same and even clarified to me in these columns that the issue was crediit rated as 3. I went into the summarised financial data of income and profit for the past few qtrs. as published, and the company's plans for the future and also felt that it could be a worthwhile investment. I applied for 1020 shares, @Rs.98/-, but was mercifully allotted a small quantity of 129 shares but sold the same @ an average price of Rs.29.45 incurring a heavy loss.

Could I know the basis on which you recommended this IPO?

If share transactions are a gamble, IPO is even more so, as the above experience indicates.


701. Newipo |   Link |Feb 18, 2011 1:05:05 PM
what omker is down? What is down target? Now rs 35 only?
Whay is do hold averges or sell? PLease guide me any?
700. Handsome |   Link |Feb 16, 2011 5:14:20 PM
@ Ravi Bangalore

Thank you very much for giving me the valuable information. Kindly post the stocks often which u like n feel having gud growth in future then we can know about them and I accept all ur views.

But every sector is always having both plus and minus.

Financial sector mainly Banks depend on the growth of the Infra, Power, Real estate etc. Banks can disburse huge loans if these sectors or any sectors grow well n then banks will get more profits. If there is no growth in different sectors then to whom they have to give loans. Crores of rupee loans will be taken by Industries not by the general people. They can take in terms of lakhs only. If all the sectors growth is not good then employment will be lower. So people can’t take loans without employment or repayment capacity. Without considering if we give the loans to people then we will face the same problem which USA faced. Investment bankers, Insurance sector also depend on the earnings of the people. If all sectors doing well then it will help more employment n it turns Financial sector to grow well. If employment is low then Financial sector growth is also low.

In Banks quality of the loans is important bec their NIM’s is around 1 to 3%. I am supplying material to different infra companies in Andhra Pradesh. One bank given 120cr loan by taking a 20cr value land as security, which is disputed n their bills receivables is 40cr. Where is the security in this issue. Another infra co which is not paying my dues since 19 months taken 30crn present due is 15cr by putting the machinery, tippers, capital goods as a security is not paying EMI’s to the banks n NBFC’s. If the machinery will be sold hardly the co can get 5cr bec they r using them since 7 years. In Hyderabad 9years before 20 co operative bank was closed bec wrong allocation n misuse of the funds. 15y before hot stocks of the market is NBFC’s. Now so many disappeared.

Harshad Mehta Scam relates to Banks, Ketan Parekh scam relates to Banks, Global Trust Bank was closed. I am having a 500 S Yards land n totally occupied by land grabbers which market value is 60 lakhs. I consulted a well known private bank n they said they can give 20 lakhs loan on that land as a security if I give 2 lakhs to the manager.2000cr scam taken palce in the Indian Bank some years ago.

When I am studying MBA one executive of ICICI bank offered credit card to me n gave all the information how to get the card n I followed n applied. I gave the Phone number of my house owner. I receive a call from the bank n I said am doing a business n my yearly income is 2 lakhs. Without verifying my business etc card was issued with credit limit of 50K. Based on that I got SBI, Bank of Baroda cards with credit limit of 70k n 100k. If I use all cards n disappear then how the banks will catch me when all addresses etc given r fake. But I didn’t do that n still am paying dues regularly.

The loan quality of the ICICI bank is the worst among all the good private banks. Now they changed some extent.

I like hdfc bank, hdfc, yes bank, idfc, pfc, rec, manappuram

As you said like that I allotted 200 shares of hdfc bank for rs.10 n I sold them in 2000 for rs.220/-.

699. Handsome |   Link |Feb 16, 2011 1:52:20 PM
@ Dinesh Singh

Dinesh Sing Jee all the 4 stock i explained come under mid caps. I too accept that Omkar may go up. Operator controlled stocks, news driven stocks may go up/down as they wish. I said Omkar about fundamentally. It may go back up and i too posted the same in my previous mails. I said about those stock for the persons who want to purchase Omkar now. We have seen in some recent IPO's, which were went up by 100% on day one without fundamentals. Delta Corp went from 30 to 150 just becasue of the news that Jhunjunwala taken some stake in the company. If we see their balance sheet p&l ac, we did't find any fundamentals. So I accept with you. Once again thanks for posting a mess for me
698. Chem cho |   Link |Feb 16, 2011 1:05:34 PM
IPO Guru IPO Guru (2500+ Posts, 2700+ Likes)
EI HOTELS 681 &682
697. Dinesh Singh |   Link |Feb 16, 2011 10:24:57 AM
IPO Guru IPO Guru (1100+ Posts, 400+ Likes)

Thanks for your complements.

In stock market there are two types of stocks. One which is reacts purely on the basis of their performance and other one is driven by operators. Large & medium cap stocks falls in the first category but small cap stocks comes in second category. You can’t predict the performance of secondary category stocks in the market because they are driven by operators. Look at the performance of C. Mahendra, Shekhawati, etc. Hence your EPS & PE theory doesn’t work in these type of stocks. Therefore you can’t predict the price of Omkar on the basis of EPS,PE, Book Value, Intrinsic Value etc. In my opinion the price of Omkar will surely go up in near future to minimum of Rs. 75 because no company wants its market value to down to such an extent in such a short period of time. I think they are in the process of negotiation with operators and soon it will reflect in the stock price of Omkar.
696. Ravi, Bangalore |   Link |Feb 15, 2011 5:31:37 PM
Top Contributor Top Contributor (300+ Posts)
696. Handsome

My best bet would be companies from the financial sector.

As India's economy is expected to grow at a robust rate from next 20-30 years, the biggest beneficiaries of this growth will be companies from the financial sector.

Real Estate, Telecom, Power, Infrastructure etc may get saturated as there is a limit of how much a person needs of each of these sectors. A person's requirement for financial services can keep increasing as long as his wealth keeps increasing.

Few months back I was looking at the list of biggest companies in the US and I found that nearly half of them were from the financial services sector (banks, investment bankers, insurance firms etc).

Banks like ICICI Bank and HDFC Bank have still a long way to go. If you are looking for a real long term investment, ICICI Bank would be a great pick.

Avoid PSU banks....they are only going to lose market share to private banks.

People are very bullish about power sector. However, I do not see much strong growth for the sector in the super-long term.

It predicts that India's electricity production will treble by 2030. Now this may seem huge growth, but if you look at annualized growth, it is now even 5% per year.

The report also predicts that India needs $1.25 trillion in energy infrastructure from till 2030. Now this is a real big figure. If this much investment goes into energy infrastructure, biggest beneficiaries will be capital goods sector - especially the companies catering to the power sector like BHEL.

The markets have only lost 15% from the top. I still find the valuations a bit stretched.

US economy is surely showing first signs of a slowdown. Also earnings growth in India is losing pace.

If you wish to invest, pick stocks that:

-are not dependent on exports especially to the US & Europe. Dollar is likely to weaken more in days to come and US consumer demand may also go down.
-are driven by consumer demand in India.
-are not cyclical in nature like steel and textiles.
-are leaders in their sectors and can withstand a downturn.

I like ICICI Bank in the banking sector.

Not comfortable with valuations of power stocks, but I like NTPC and BHEL as businesses.
There will be 100's of multi-baggers in the next bull-run. The problem is that no one really has the patience to hold stocks for the long term.

e.g. ICICI Bank took nearly six years to go from 100 to 1000. How many people would have held the stock for such a long period? Most people sell out of a stock if it gives them a decent return in the short term.

If you are a long term investor, then you should be using panics to buy and not sell.

Stocks can beat most investments in the long-term.

Listen to Rakesh Jhunjhunwala and Shankar Sharma. You will get lot of tips about how to analyse stocks.
695. Handsome |   Link |Feb 15, 2011 4:17:50 PM
@ Dinesh Singh Jee

Thanks 4 understanding me.

I completed graduation in and MBA (Finance) in Post Graduation. I am below average student. I belong to Andhra Pradesh, Telugu is my mother tongue. After my PG I am continuing my father’s small business. I am having interest in share market from 12 standard n I learned market knowledge from my lecturer in 12th time.

In my opinion even Rs.35/- is also high price for Omkar (If any one who is holding Omkar don’t take any decision based on my opinion n just decide ur self).

Govt., undertaking PSU Bank Punjab & Sindh Bank with annualized EPS of 25 n book value of around 100/- is trading for Rs.100/- in the market. By leaving this standard stock with PE of 4 y we have to run behind Omkar with PE of 20 at the time of IPO n 7 now. Coal India, the largest coal mine co in the world n in the future their profits will be more because they r setting up(increasing) coal washeries to their make their coal quality up to international quality n then their margins will increase after few years because they r selling their coal very less price when compared with international prices. But the present coal quality is also less. But stocks like Coal India n Punjab Sind Bank may not perform up to the market n other stocks but will give good returns in future. In the same way Omkar may also give good returns in the future but it is uncertain when compare with other good stocks

When so many beautiful stocks which are ahead in terms of management, sales, profit, dividend, group background, book value and Q on Q , Y on Y having good growth etc are trading in the market then y we have 2 think about Omkar which is in the competitive field of Chemicals.

HDIL one of the top 5 real estate company with huge land bank in VASAI, VIRAR of Mumbai and small pieces of land in metro cities. Their profit margin is very high their business model is very good. They r developing Dharavi slum rehabilitation project in Mumbai (Dharavi is the Asia’s biggest slum area) which is highly profitable. Now real estate companies facing many problems but after few year they may come out because Land is decreasing when oceans come forward due to global warming n population is inceasing.

Educomp n Everon 2 excellent stocks which command high PE of around 50 few years before trading around 10+ PE as per Friday’s lows. They r providing education software to schools n the competition is not very high and their business will sustain at least some years.

Deccan chronicle which is no.1 English daily in Andhra Pradesh available for cheap valuation when compare other new paper stocks now.

Like this so many good stocks available for cheap valuations than Omkar now in the maket . But if these companies having any inside problems I don’t know. Deccan Chronicle price went down heavily n I don’t know the reason.

Valuation as per the low price of Friday.

Company price PE Book Value Dividend(%)

HDIL 124 5 180 30
EVERON 400 12 200 20
EDUCOMP 400 13 150 90

Like this so many good companies r trading for cheap valuations now.

Thanks for posting a message for me. In fact you r highly educated than me. As a commerce student I knew completing of ICWA, CS, CA and CFA not easy task. You r also having 15 y experience n still u give value for me. Thank u very much for that.
694. Handsome |   Link |Feb 15, 2011 3:13:27 PM
@ Durai Raj,Tirupur
@ KK Natarajan

Thanks Durai n KK for explaining the meaning. Durai I already told u that am not fluent in English for that reason based on the situation I felt like that. I didn't complete my education in good English medium schools. Up to graduation I studied in my mother tongue. I born n brought up in a small town with a population of 50k.

Mr. KK the following line is bit harsh. I didn't know that a brief explanation means 'trying to make an issue out of nothing'.

(As I feel you are trying to make an issue out of nothing, from now on I will stop reacting to your comments.)
693. Ravi, Bangalore |   Link |Feb 15, 2011 2:39:46 PM
Top Contributor Top Contributor (300+ Posts)

My view is it could be heading to 38, stop-loss 24.

I am not surprised if it declines to Rs.7 eventually. If it is able to clear 38, then, my view will be negated.
692. Chittorgarh Member |   Link |Feb 15, 2011 2:19:13 PM
Thanks Ravi for the clarification.
Shekhawati Poly is in continuous upper circuit from last three days.
Do you have any idea about the targets?
691. Ravi, Bangalore |   Link |Feb 15, 2011 2:12:31 PM
Top Contributor Top Contributor (300+ Posts)
692. Chittorgarh Member

Circuit at 33.60.

I am getting target of 33, 23 subject to stop-loss. I may revise my view by this month-end.

Operators are getting 20% - 30% discount to IPO price. They will manage to get subscription & then, they are the sellers.

Many IPOs keep coming, people keep applying, then investors try to justify their holding decision.
690. Chittorgarh Member |   Link |Feb 15, 2011 1:48:26 PM
I think Omkar is having 10% circuit. Maximum downside is 37.755.
I don't know how Ravi Bangalore will achieve target 33??
689. Ravi, Bangalore |   Link |Feb 15, 2011 12:44:25 PM
Top Contributor Top Contributor (300+ Posts)
Omkar (40.60)

Shorted at 41.30. Stop-loss 42.5. Target 33.

This is my trade. Unsure of outcome. Even my position could get stopped-out!