NEW DELHI: The IPO of Laxmi Organic was subscribed 6.05 times on the second day of the bidding process on Tuesday. The IPO was subscribed 2.28 times on the first day.
The issue received 19,68,68,270 bids as of 5:00 pm, against a total offer of 3,25,58,138 shares.
The issue is priced in the range of Rs 129-130 per share. Dealers of unlisted shares said the stock is trading at Rs 232-235 range in the grey market, meaning a premium of 81 per cent over the upper limit of the band price.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities.
NEW DELHI: The IPO of Laxmi Organic was subscribed 2.28 times on the first day of the bidding process on Monday. The company plans to raise Rs 600 crore.
The issue received 7,42,26,635 bids as of 5 pm, against a total offer of 3,25,58,138 shares.
The issue is priced in the range of Rs 129-130 per share. Dealers of unlisted shares said the stock is trading at Rs 232-235 range in the grey market, meaning a premium of 81 per cent over the upper limit of the price band.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities.
Laxmi Organic raises ₹180 crore ahead of IPO
March 12, 2021
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Laxmi Organic Industries Ltd, a Mumbai-based specialty chemicals manufacturer, has raised ₹180 crore from 15 anchor investors a day prior to the opening of its initial public offering (IPO).
The company allocated 1.38 crore shares at ₹130 per share on Friday, it informed the bourses.
Eight foreign portfolio investors who participated in the anchor were Nomura India Equity Fund, Abu Dhabi Investment Authority, Goldman Sachs, Kuber India (Plutus), Theleme India Master Fund, Malabar India Fund, Ashoka India Opportunities Fund, India Acorn Fund. These investors were allocated 78.46 lakh shares for about ₹102 crore.
Malabar India Fund and Ashok India Opportunities Fund have also invested ₹55 crore and ₹35 crore, respectively, in a Pre-IPO round last month.
Laxmi Organic proposes to utilise the net proceeds from the fresh issue towards repayment of borrowings, funding of working capital requirements and for general corporate purposes.
The three-day public issue will begin on March 15 and close on March 17.Laxmi Organic is currently among the largest manufacturers of ethyl acetate in India,