Shares of Laxmi Organics made a decent debut on the bourses on Wednesday despite the ongoing market volatility.
Shares of Laxmi Organics made a decent debut on the bourses on Wednesday despite the ongoing market volatility. The stock listed with a premium of 19.6 percent at Rs 155.5 per share on the NSE as against the issue price of Rs 130 per share. On BSE, it was listed at Rs 156.20 apiece, up 20 percent.
The IPO of Laxmi Organics that was open between March 15-17, 2021, was a major hit as it was subscribed over 106 times. The offer consisted of a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by the promoter group Yellow Stone Trust. The price band was set at Rs 129-130.
The HNI quota of the IPO was subscribed over 217 times, the QIB quota was subscribed 175 times and the retail quota was subscribed 20 times.
The company is expected to utilize the funds generated by the issue towards developing two new chemicals facilities and its working capital requirements. On listing, the company's market cap will stand at Rs 3,428 crore.
Most brokerages had advised subscribing to the issue on strong growth and expansion plans and high market share in the specialty chemicals space. New acquisitions and great clientele are also key positives for the firm.
Established in 1992, the firm is the largest manufacturer of ethyl acetate in India. It has a diverse product portfolio and a market share of approximately 30 percent of the Indian ethyl acetate market and approximately 55 percent of the diketene derivatives market.
(Edited by : Pranati Deva)