Laxmi Organic Industries: IPO’s fully booked on Day 1

Laxmi Organic Industries has a proposal to raise Rs 600 Crore through public issue. IPO subscription of the company went up to 123% on March 15, 2021.

The offer size was 3.25 Crore shares however, on the first day of bidding the investors bids for 3.99 crore equity shares.

Currently, there was an exception of participation Qualified institutional buyers to bid for the issue. The retail investor put subscription 2.34 times and non-institutional investors 28 percent.

Earlier they gain an amount of Rs 180 Crore from anchor investors. The range of price band of the share is set at Rs 129-130 per share.

The investment made in the company will lead to future benefits as the goals set by them include acquisitions, expansion, long-term contracts for specialty intermediates, and more.

It is the only manufacturer of diketene derivatives in India having 55% of the market share. Currently, the chemical sector is famous among the investor and is the first choice of investment source. Therefore, it will lead towards getting a positive response from the investors. Allotment of shares is probably may hold on March 22 and list on March 25.

The fresh issue of offers amounts to Rs 300 Crore. The major inclination is towards two business segments which are: acetyl intermediates and specialty intermediates. They will use a portion of the proceeds to make repayment of certain outstanding along with corporate purposes.

The company has customers from international countries like China, Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom, and the US.

While considering the goals and growth prospects of the company it indicates that the IPO will lead towards long-term benefit to its customers.

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