Thyrocare Technologies Ltd, a operator of medical labs, saw its shares surge 39% at the end of its first day of trading.

Shares of Thyrocare, whose IPO received demand for 75 times the number of shares offered, ended trading at 618.10 on BSE on Monday. The stock touched a high and a low of 665.40 and 606, respectively. The stock opened at 662 per share.

Thyrocare had a market value of 3,320.65 crore at the end of trading on Monday, stock exchange data showed. More than 15.53 million shares changed hands on the first day of trading, exchange data showed as investors rushed to book profits or listing gains.

Thyrocare had fixed a price band of R420-446 per share during its initial public offering. The Navi Mumbai-based company had allotted shares at the upper end of the price band.

In the grey market on Friday, Thyrocare’s shares were in demand at a premium of 240-260 per share above its issue price band, reflecting strong interest in the stock, two dealers said on condition of anonymity. The grey market is an over-the-counter market where IPO shares are bought and sold before a company officially lists on the stock exchange.

The strong interest in the grey market reflected in the first day performance of the stock.

Analysts have been positive on the company.

In a note on 27 April, Kotak Securities Ltd analyst Meeta Shetty said that the cash-adjusted returns on equity and returns on capital employed of about 25-30%, zero debt and about 23% cumulative annualised growth are key positives for the stock.

“The cash-rich business, large untapped (unorganized) markets, ample growth avenues through different offerings and scarcity premium has led higher valuation for this industry in recent times (Dr. Lal PathLabs Ltd trading at P/E 55x). However, the company (Thyrocare) will have to sustain higher growth in revenues and margins to continue trading at the premium valuations," Shetty added.

Edelweiss Financial Services Ltd, ICICI Securities Ltd and JM Financial Institutional Securities Ltd were advisers to the Thyrocare public issue.

Religare Securities Ltd’s analyst Ajay Kumar Srivastava and Swati Saxena said that Thyrocare would see impressive growth in the years to come, aided by healthy financials.

“Thyrocare is gearing up for growth in business and volumes of samples processed for which it intends to expand the network of RPLs (regional processing laboratories) to more cities across India," Religare analysts said in a note.

Dr. Lal PathLabs, another chain of diagnostics laboratories, ended at 979.25 per share, up 0.6% from Friday’s close. The stock had jumped 50% on its debut in December 2015. The stock has given nearly 80% returns since then.

The primary markets have remained active this year after a pick up in 2015. So far this year nine firms have raised 5,985 crore through the IPO route, data from primary market tracker Prime Database shows. Twenty-three firms have the regulator’s approval for IPOs worth almost 10,500 crore.

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