The speciality chemicals company, which is planning to raise Rs 600 crore through public issue, has already raised Rs 200 crore in pre-IPO placement issue. The issue is priced Rs 129-130 per share
On the second day of bidding, the initial public offering (IPO) of Laxmi Organic Industries was subscribed 6.05 times. While non-institutional investors subscribed their portion 2.48 times, retail investors’ portion was subscribed 10.38 times. Bids for 19.69 crore equity shares were received against the offer size of 3.25 crore. On day one, the IPO of Laxmi Organic was subscribed 2.28 times.
The speciality chemicals company, which is planning to raise Rs 600 crore through public issue, has already raised Rs 200 crore in pre-IPO placement issue. The issue is priced Rs 129-130 per share.
The IPO — which will close on 17 March — consists of a fresh issue of Rs 300 crore as well as an offer for sale of Rs 300 crore by promoter YellowStone Trust.
On Friday, the company raised Rs 180 crore from 15 anchor investors. These investors include Theleme India Master Fund, Malabar India Fund, Ashoka India Opportunities Fund, India Acorn Fund, SBI MF, ICICI Prudential MF, Nomura India Equity Fund, Abu Dhabi Investment Authority, Goldman Sachs, Kuber India (Plutus), and Aditya Birla MF.
The minimum bid lot for Laxmi Organic is 115 equity shares and in multiples of 115 shares thereafter. With this, the minimum application size at the higher price band works touches Rs 14,950.
Established in 1992, Laxmi Organic is the largest manufacturer of ethyl acetate with over 30 percent market share in the Indian ethyl acetate market. This share is likely to increase post the completion of the Yellowstone Chemicals (YCPL) acquisition. It also holds a 55 percent share of the diketene derivatives market.
The share allotment will be finalised around 22 March. The funds from the Applications Supported by Blocked Amount (ASBA) account will be unblocked or refunds will be provided around 23 March, says the prospectus.
Allotted shares will be credited to the Demat accounts of eligible investors around 24 March and the shares will be listed on BSE and NSE around 25 March.
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