Why has Chemplast rallied so sharply after the recent IPO?

After a tepid response to the IPO, the stock of Chemplast listed just around its listing price and then gradually slipped below the IPO price. However, the stock has recovered by nearly 21% from the lows and the stock is up nearly 15% from its IPO price, which makes the stock look quite interesting. Let us look at what triggered this rally in the stock.

There are 2 reasons for the same. Firstly, Chemplast is engaged in manufacture of specialty paste PVC resin, and it has a virtual dominance in this particular speciality chemical. Secondly, as committed in the prospectus to its IPO investors, it has used part of the fresh funds raised to fully repay the NCDs of Rs.1,268 crore, which has gone down well with investors.