21 Mar , 2021 By : kanchan Joshi
All eyes are on the share allocation in Laxmi Organic, which saw a huge response from investors. Link Intime India Private is the registrar of the issue and will manage allocation and refund. Allotment of shares of Laxmi Organic is likely to be finalised on March 22 while the listing is likely on March 25. Once finalised, investors can check their application status on the website of Link Intime India.
The IPO of speciality chemicals manufacturer Laxmi Organic Industries was subscribed was subscribed nearly 107 times, driven by huge interest from institutional investors. According to grey-market observers, Laxmi Organic shares were trading at a premium of Rs63. The issue was open between March 15 and March 17 and the price range was fixed at Rs129-130 per share.
The segment reserved for qualified institutional buyers (QIBs) was subscribed 175.43 times, non institutional investors 217.62 times and retail individual investors (RIIs) 20 times.
35% of the issue has been reserved for retail investors, 50% for qualified institutional buyers, and the rest for non-institutional bidders.
Laxmi Organic IPO comprised a fresh issue of up to Rs300 crore and an offer for sale of up to Rs300 crore. Ahead of the IPO, the company had garnered Rs180 crore from anchor investors. Apart from working capital requirements and upgradion of existing units, Laxmi Organic will use the net proceeds for setting up a manufacturing facility for fluorospecialty chemicals.
Some analysts say that the chemical sector is a current favourite of investors and recently listed chemical stocks have rewarded investors and the issue may get a good response on listing day.
Domestic brokerage Anand Rathi had recommended subscribe to the issue, citing growth prospects. "The company has strong presence in Acetyl Intermediaries & Specialty Intermediates business; further it is establishing Fluorospecialty chemicals business. The company also plans expand and optimise its capacity and product portfolio," it said.
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