Laxmi Organic Industries share sale via initial public offering (IPO) was oversubscribed on first day of the issue. Laxmi Organic Industries IPO was subscribed 1.8 times till 4:10 pm on the opening day of the issue. Laxmi Organic Industries received over 5.84 crore bids for 3.25 crore shares on the offer, data from the National Stock Exchange showed. The issue received over 4.4 crore bids at the cut off price, according to NSE.
Retail investors were seen bidding for the IPO in large numbers as the portion reserved for them was subscribed 1.88 times.
Laxmi Organic Industries' Rs 600 crore initial public offering (IPO) opened for bidding today and will close on March 17. The company has fixed the price band at Rs 129-130 per share and expects to raise Rs 600 crore at the higher end of the price band. The shares of the speciality chemical manufacturer are likely to be listed on the bourses on March 25.
Laxmi Organic Industries' primary market offering comprises a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by the promoter group, Yellowstone Trust. Bids can be placed for a minimum 115 equity shares and in multiples of 115 equity shares, extending up to 13 lots.
Ahead of the IPO, Laxmi Organic Industries raised Rs 200 crore through pre-IPO allotment to six entities.
Laxmi Organic Industries will use the net IPO proceeds to invest in a wholly-owned subsidiary, Yellowstone Fine Chemicals (YFCPL), to fund capital expenditure needs for expansion of its specialty intermediates manufacturing facility and for working capital requirements.
Laxmi Organic Industries is among the largest manufacturers of ethyl acetate in India. It has two manufacturing facilities in Mahad, Maharashtra and accounts for 30 per cent of the ethyl acetate market in the country.