The initial public offering (IPO) of Laxmi Organic Industries is subscribed 106.74 times so far on March 17, the final day of bidding as investors put in bids for 347 crore equity shares against the offer size of 3.25 crore shares, subscription data available on exchanges showed.
The portion reserved for retail investors is subscribed 19.97 times and that of non-institutional investors is at 217.62 times, while the qualified institutional buyers' quota is subscribed 175.43 percent.
A leading manufacturer of acetyl intermediates (AI) and speciality intermediates (SI), Laxmi Organic plans to raise Rs 600 crore through the public issue. The issue consists of a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by promoter Yellow Stone Trust.
The price band has been fixed at Rs 129-130 per share and the company has already raised Rs 180 crore from anchor investors at the higher end of the price band.
"We recommend subscribe on Laxmi Organic's IPO with a long-term perspective given its striking growth plans, led by 1) scheduled new acquisitions, 2) expansion of core business, 3) entry in high margin fluoro chemistry segments and 4) long term contracts for speciality intermediates," said Prabhudas Lilladher.
"While growth has been muted in FY20 due to floods and low production along with weak spreads, we expect it to improve as new capacities and business segment come on stream in FY22 and FY23. On an annualised H1FY21 numbers, the stock is valued at PER of around 38x FY21, which is not expensive given the earnings driver once capacities get commissioned," said the brokerage.
Also read our in-house research team's take on Laxmi Organic IPO
Also Read: Laxmi Organic Industries IPO: 10 key things to know before subscribing the issue
Laxmi Organic Industries shares traded at a 69-77 percent premium (Rs 90-100) over the issue price of Rs 130 (the higher end of the price band) in the grey market, the data available on IPO Watch showed.
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