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Laxmi Organic lists at premium

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Capital Market
Last Updated : Mar 25 2021 | 10:50 AM IST

Shares of Laxmi Organic Industries were trading at Rs 158.65 at 10:06 IST on the BSE, a premium of 22.04% over the initial public offer (IPO) price of Rs 130.

The stock was listed at Rs 156.20, a premium of 20.15% to the IPO price. So far, the stock hit a high of Rs 162.05 and low of Rs 143. On the BSE, 20.32 lakh shares were traded on the counter so far.

The IPO of Laxmi Organic Industries was subscribed 106.79 times. The non-institutional investors category was subscribed 217.62 times. The qualified institutional buyers (QIBs) category was subscribed 175.43 times. The retail individual investors category was subscribed 20.06 times.

The issue opened for bidding on 15 March 2021 and closed on 17 March 2021. The price band for the IPO was set at Rs 129-130 per share.

The offer comprised a fresh issue of up to Rs 300 crore and an offer for sale of up to Rs 300 crore by the promoter Yellow Stone Trust.

Ahead of the IPO, the company on 12 March 2021 finalised allocation of 1,38,46,153 shares to anchor investors at Rs 130 per share, aggregating to Rs 179.99 crore.

Additionally, the company has undertaken a pre-IPO placement of 15,503,875 equity shares aggregating to Rs 200 crore. Consequently, the size of the fresh issue has been reduced from 500 crore to up to Rs 300 crore.

The company proposes to utilise the net proceeds of the fresh issue for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery and upgrading existing units.

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In addition, funds would be used for prepayment or repayment of all or a portion of certain outstanding, besides general corporate purposes.

Laxmi Organic Industries is a speciality chemical manufacturer, focused on two key business segments: acetyl intermediates and speciality intermediates. The company's acetyl intermediates unit produces a wide range of acetyl products, including bulk solvents and aldehydes. It is a leading manufacturer of speciality intermediates such as ketene & diketene derivatives including esters, amides and arylides.

On a consolidated basis, the company reported a net profit of Rs 45.48 crore and revenue of Rs 813.41 crore in the six months ended on 30 September 2020.

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First Published: Mar 25 2021 | 10:07 AM IST

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