Aster Silicates slumps after strong debut

Shares of Aster Silicates Ltd. doubled on debut before tumbling by 20% on the last trading day of the week. The stock closed the week at Rs196.30. It had been as high as Rs258 during the week and as low as Rs123. The issue price was fixed at the higher end of the price band of Rs112-118 a share. The IPO of sodium silicate maker was open between June 24 and June 28. The issue was subscribed 4.47 times. Sodium silicate includes food grade sodium silicate, special drilling grade silicate and detergent grade silicate. Aster produces sodium silicate both in glass and liquid form. Food grade sodium silicate is used in the manufacturing of Silica precipitate and Gel, which finds its applications in toothpaste, salt, cosmetics, glucose powder, tyre, rubber and pesticides etc. Sodium silicate, (special drilling grade silicate) is also used in off-shore drilling and for reactivation of old oil and gas fields. Aster intends to use issue proceeds for expansion of manufacturing facilities and additional working capital requirements.