BLS Polymers shares are commanding a strong premium in the grey market ahead of their stock market debut on November 3, following an overwhelming response to the company's initial public offering (IPO).

As of November 2, the IPO was commanding a grey market premium (GMP) of Rs 66 per share, or approximately 44 percent, according to InvestorGain. At the upper end of the IPO price band of Rs 150, the premium indicates a potential listing price of Rs 216 per share.

However, the grey market premium is an unofficial indicator of investor sentiment and does not guarantee listing gains. It may fluctuate depending on market conditions and investor demand ahead of the listing.

The Rs 255 crore IPO received an overwhelming response from investors, with the issue subscribed 241.22 times, according to NSE data. Investors placed bids for 287.05 crore shares against 1.19 crore shares on offer.

The non-institutional investor category led the demand, with its reserved portion subscribed 559.20 times. The qualified institutional buyer category was subscribed 200.25 times, while the retail investor portion received bids for 128.36 times the shares reserved for it.

The IPO opened for subscription on October 27 and closed on October 29, with the company fixing the price band at Rs 142 to Rs 150 per share. At the upper end of the price band, the company was valued at approximately Rs 930.5 crore.

The issue comprised an entirely fresh issue of 1.7 crore equity shares. The company intends to utilise the proceeds to fund its expansion plans and working capital requirements.

Of the total proceeds, Rs 77.56 crore has been earmarked for expanding its existing manufacturing facility in Goa, while Rs 89.5 crore will be utilised towards working capital requirements. The remaining amount will be used for general corporate purposes.

The allotment was scheduled to be finalised on October 30, while refunds and credit of shares to demat accounts were expected on November 2. BLS Polymers shares are scheduled to list on the BSE and NSE on November 3.

Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said BLS Polymers is positioned to benefit from rising investments in infrastructure sectors.

The company's diversified product portfolio, customised manufacturing capabilities and established market presence could support its growth as investments in power, telecommunications, railway and pipeline infrastructure increase.

Solanki expects the stock to make a decent debut and said investors may continue to hold it from a long-term perspective or partially book profits.